Nearly 82 million American workers have experienced paycheck errors.
Because of this, it’s up to the employer to produce the correct paystub so their team can use these for their mortgage, loans, and credit cards. Perhaps you’re planning to create your pay stubs but you’re not sure where to start.
Sound familiar? If so, you’ve come to the right place. Here’s everything you need to know.
What to Include
You may wonder “can you create your pay stubs?” The answer is yes!
Pay stubs are a snapshot of the employee’s earnings within a given period so you must include name, address, and pay period so you can instantly tell whose pay stub it is.
Further, include the pay period which is two weeks, half-month, or a month where you’re paying the employee. When you create your pay stub, consider how many hours the employee has worked and whether they get paid hourly or a monthly lump sum.
It’s important to note that if you’re doing pay stubs for a restaurant then you may need to break the hours by roles such as server or bartender. Don’t worry about declaring tips because they’re included in gross pay.
Gross pay must also be featured which is the employee’s earning for that period before taxes, insurance, and their pension is accounted for. Deductions can be tricky to calculate because several states don’t charge local taxes so it’s wise to check the IRS Employer’s Tax Guide to see if your town or city requires local taxes.
You must also display the employee’s net pay which is how much the employee has at the end of a period. It’s up to you but employers can also add vacation or sick time to the pay stub template so employers can see how much they’ve used during a period.
Note, you should also include year-to-date statistics so employees have a better understanding of their earnings from January to the date of the pay stub.
How to Make a Pay Stub
Not sure how to create your pay stub free? If you want to create a pay stub but you’re not tech-savvy then many makers automatically produce a template so you simply fill in the details.
Otherwise, you could use business software like Google Sheets which has tools to make pay stubs and you can save the documents to the cloud so it’s backed up and accessible from multiple devices.
That’s How You Create Your Pay Stub
Hopefully, you now know how to create your pay stub.
All stubs display the same information like the employee’s basic details, gross pay, net pay, and the year-to-date statistics so they can keep track of their finances. Luckily, there are many programs where you can automatically generate pay stubs so the process should be hassle-free. Good luck!
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