How Can I Make a Simple Paystub?
Check stubs are not as complicated as they used to be because making a simple paystub is achievable. So whether you run a startup, need a loan or experience a situation requiring proof of income, a simple pay stub helps.
This article covers essential information about making a sample paystub. You will also learn what information goes into a check stub and how to understand yours better.
What is a paystub?
A pay stub is an employer's document showing an employee's current pay. The document gives detailed information about the employee's earnings, work hours, deductions and withholdings, etc. Usually, pay stubs are created to accompany every paycheck, which is why most people confuse both documents. Other designations for a paystub include a paycheck stub, salary statement, earnings statement, payslip, etc.
However, a check stub can exist either as a standalone document or as an accompanying document. Also, they can be paper checks or electronic and emailed to employees or placed online via the company's payment portal.
Receiving or issuing a simple paystub is insufficient for the information age. As a result, it is essential to understand what information the document carries and how to interpret it. This way, you gain more utility and know when and how to use it.
What information goes into a paystub?
Every check stub design arises from one principle: presenting information about an employee's current earnings. Therefore, a simple paystub should carry the following essential information:
- The number of work hours: They are usually listed in each pay period's left column and include overtime, hourly or weekly work periods, etc.
- Gross pay: It is the total amount an employee gets before the deduction of taxes and includes both weekly and annual representations.
- Net pay: It is the employee's take-home pay after deductions. This section of the paystub includes weekly and yearly earnings. Also, the net income is calculated based on the number of hours the employee invested at work. It can also have hourly rates and flat rates.
- Tax information: The section for tax information includes all salary deductions and withholdings. They include but are not limited to social security, insurance, healthcare, etc. The tax information usually has two columns representing deductions over 52 weeks and another every week. The 52-week representation is vital for getting a general picture of the yearly earnings before the time for submitting employee W-2 forms.
- Additional information: This section of the document concerns other deductions not made at the time of payment. Examples of such deductions include benefits, payroll taxes, etc.
Why is a paystub important?
A pay stub is a vital document that provides information about an employee's pay. It is helpful for tax purposes and for obtaining loans. It can also save you the hassle if there should have any discrepancies with payment, whether as an employer or employee.
For the employer, it instills confidence in your workers that they accurately receive their due pay. On the other hand, for employees, the document serves as proof of income or work, usually demanded when trying to obtain a loan.
Here is a summary of the top three situations when your simple paystub becomes essential:
- When the need to show proof of income or work arises
- When you are suspicious of inaccurate payment
- During tax seasons.
Can I make my own paystub?
Today's digital world makes it easy for people to make their paystubs by themselves using online paystub generators and paystub portals. They offer simplified versions of a paystub maker and even facilitate the ready availability of the document in your email. Here are other benefits of using paystub generators to create a sample paystub.
Benefits of using online paystub generators
- It prevents human error with calculations and financial documentation
- It is more efficient, time-saving and increases productivity
- They are cheaper to maintain (both material and human resources)
- Online paystub generators are better for the environment as paperless transactions equal eco-friendliness.
- They add more professionalism to your business or commerce.
How to make a simple paystub?
Now that you have factual information about a paystub and its relevance as a document, it is time to create yours. Essentially, there are three primary methods for creating check stubs. Therefore you can either:
Use paystub templates
Paystub templates provide the cheapest methods for making a simple paystub and benefit small business owners. They are readily available, easy to use and do not require any accounting experience. However, most templates are prone to errors.
Use a paystub generator.
Paystub generators are less prone to errors and more efficient than the templates. They help with vital calculations and are usually up to date with local taxes and deductions. Most generators are easy to use and cost-effective to obtain but still require manual effort. It is the perfect choice for making a simple paystub as you only need to go online and fill in your details. Afterward, you can double-check to ensure that all data you entered are accurate and click send. Most paystub generators have the option to send your paystub to your email immediately.
Engage an online payroll service.
Online payroll services are the most efficient method for making paystubs, especially for growing or more significant businesses. It requires the least human effort, and employees need an email address to access their separate portals. It is highly automated and detailed in curating employee payroll information.
Final Thought
Digitalizing business and commerce make financial documentation a vital aspect of living. Therefore you no longer have to wait for long as you can easily go online and quickly create a simple paystub for your business. Hopefully, this article gives you a head start with personal check stub generation.
FAQS:
How can I show proof of income if I get paid in cash?
Getting paid in cash can be challenging when trying to prove it because of the ack of documentation. However, in today's world, where information is power, several methods to prove your income exist. For instance, you can request acknowledgment letters from those who pay you. Alternatively, you can duplicate documents like receipts, invoices, ledgers and tax statements.
What are the four major parts of a paystub?
Even though there are other inclusions on a paystub, four major parts account for the more significant part of the information. The four features include your personal and check information, earnings, deductions and withholdings.
How much money can you make without a 1099 form?
Although there is a tax rule stating that self-employed people getting above $600 should get 1099. However, there are several exceptions to the law, and people can earn less than $600 without needing 1099. Also, there are different 1099 forms to suit different payment situations.
Is a paystub the same document as a paycheck?
A paystub and a paycheck are entirely two different things. A pay stub can be part of a paycheck or a separate document. A pay stub provides detailed information about an employee's pay like deductions, withholdings, and gross and net income. A paycheck only gives information about how much you are getting paid.