While providing a paystub to your company’s employees is not mandatory, nor it is enforced by the country’s laws, it is still a good idea to consider adding this little piece of paper together with the check. It may not seem like you are doing a lot since it is just a small piece of paper accompanied by the paycheck, but it is actually a huge benefit for your employees. This is a huge advantage for a lot of people because it is an easy way to prove their earnings.
However, if you are looking to create a professional paystub, you may require a little bit of guidance to ensure that you are going in the right direction. Online, you will probably find thousands of tips regarding this topic, but if you want to make your pay stub as professional as possible, here are some of the most useful tips.
Why are paystubs is important?
If you still cannot seem to figure out and understand why anyone would need this kind of document, I will have to explain some of the reasons why a paystub is beneficial and important.
Well, you have probably needed proof of earning a few times in your life. Whether it is for renting a house, applying for a loan, mortgage, or requesting credit. To get even the smallest chance of being approved, showing a proof of money is mandatory. And that is the purpose of a pay stub.
Otherwise, your application will be immediately denied. At least, that applies to most of the mortgage types and loans.
So, as you can see, providing your employees with a paystub is much more beneficial than you originally thought.
If you are now convinced that your employees do need such a document, here are those tips I mentioned previously.
1. Accurate gross pay calculations
One of the most important things about creating a paystub is that the gross pay has to be accurate. In other words, it needs to be exactly the same as the paycheck. To make sure that you do all of your math rights, I recommend calculating the hourly rate on the contract. Once you multiply the hourly rate with total hours worked, you will know exactly how much your employee’s month’s pay is.
Of course, if there is anything else you could add such as overtime hours or anything like that, you have to add that to your math.
2. Do not forget about taxes and deductions
There are a lot of essential things that must be added to a paystub, especially if you want people to use it in the future as a proof of payment.
One of those essential things is the taxes and deductions. Every pay stub must have these two things calculated into the net pay. The net pay is a sum of the gross income and then minus all the taxes and deductions.
When working to add the taxes onto the stub, make sure you calculate everything from unemployment, local, state, federal, and any other taxes into account. Otherwise, the document itself will be unusable and ineligible to your employees.
If you want a positive reputation and if you want to earn the respect of your employees, it is essential to make every single calculation correctly.
To help will understand how vital this part of the pay stub process really is, I added the tip below.
3. Review the numbers
Since this is going to be people’s proof of income, I cannot stress enough how important it is that there are no mistakes whatsoever. So, once you have done all the math and calculate the exact gross pay, you will have to do a short review of the numbers.
Check whether the tax, income, deductions, contributions pensions, overtime hours, or anything like that all add up nicely. Proofread through every single number.
4. Proper formatting
Another essential part of every paystub is the formatting. Almost all companies, corporations, and even smaller businesses stick to one similar format when creating this kind of document.
Of course, it is not mandatory to stick to this kind of format, but it is already popular and widely accepted.
If you are looking for an example format, all you have to do is just search for real pay stubs on Google and you will probably get thousands of results. Don’t worry, you can copy the exact same style/format as the one you see in the pictures.
5. Use a Free Check Stub Maker
If all of this seems too complicated for you we simply do not have the time to make these documents for your employees, there is a very simple and quick solution to your problem. Instead of individually calculating every paycheck and creating a template, you can actually just use one of the hundreds of free check stub makers online.
These online tools are very easy to use. With just a couple of clicks, you will have the document ready to be delivered.
Of course, not every online generator is equal. One will probably be better than the other. This is why it is recommended to do a little bit of research to find out exactly which check stub maker you should use, as suggested by paystubsnow.com.
If you cannot seem to figure that out on your own, you can always use Google to find reviews on set tools/generators.
As you can see, creating a professional pay stub might prove a little bit difficult than you originally expected, but do not worry, if you follow through with all of these tips that I mentioned above, I am sure that you will be successful in this task. If you ever have issues and do not know how to continue, you can always use Google images to see what kind of format you should be following.
Or, you could just resort to using one of the many free check stub makers that are available online. By using these tools, you will not have to worry about making any crucial mistakes during the creation process.