There were close to 60 million Americans employed by small businesses in 2018. If you are a small business owner, making sure that your employees get paid the right way should be a top priority.
Chances are if you are a small business owner you don’t want the added expense of hiring an outside service to handle payroll. In this case, you need to learn how to make your own pay stubs. This guide will explain the best way to do that.
Information to Include in Pay Stubs
There is some essential information that should be on every pay stub that you generate. Including all this information is how to make pay stubs the right way.
The first thing that should be included at the top of a pay stub is your company information such as your company’s name and address.
Next fill in vital employee information such as their name, address, and Social Security Number. Once you have filled out all the important employer and employee information it is time to crunch the numbers.
This means including all gross earnings (before taxes and withholdings) and net earnings (the employee’s take-home pay). Make sure to include a separate section that lists any withholdings for health insurance, taxes, or other employee benefits.
If your employee has matched contributions for their benefits this should be included as well. You will also want to include the total number of hours the employee worked, and the rate at which they were paid for each hour.
Make sure to organize all the dates the employee has worked broken into a pay period. It is also important to differentiate between base hours, overtime hours, and special cases such as hours including hazard pay. The rates of each of these will be different.
Finally, make sure to show the amount of sick leave and annual leave the employee has accrued or used during the pay period. It also never hurts to add a total Year to Date summation of all the hours and pay an employee has received at the bottom.
Ways to Make Your Own Pay Stubs
The old way of making pay stubs was to write it all out by hand. Since the invention of the typewriter and the computer, this has become obsolete.
If you want to start from scratch you can use a word processing program to create a paystub or a spreadsheet program like Excel.
However, there are much easier ways to go about making a pay stub. Nowadays you can make pay stubs online free using the internet. Learning how to make paystubs online is your best option for both cost and convenience.
You can use a check stub generator to create pay stubs fast and easy. This is your best option when it comes to making your own pay stubs.
Make Pay Stubs Today
The business world depends on concise and efficient record-keeping. Pay stubs are one of the most vital records that your business can have. Learning how to make your own pay stubs keeps your business independent and helps your bottom line.
Make your own pay stubs today and stay ahead of the curve. For all of your other news and information make sure to check out the rest of our blog.
