How To Generate Pay Stubs For Employees

If you have employees, it is essential to generate a pay stub for each pay period. Why so? Paystubs make it easy for staff to track their earnings and apply for loans, mortgages, or credit cards. Being a small business owner, you can use a free paystub program to generate payslips for your employees – most accounting software programs have this option. 

What is a Pay Stub 

Before getting into the nitty-gritty of creating a pay stub, discovering all the info here and knowing what it is and what it is all about is essential. Paystubs display wages earned for the duration of time an employee worked. Also, it shows any personal taxes, deductions, employee contributions, and other essential details. All records of pay stubs are to inform workers how their wages are calculated. Usually, pay stubs are either attached to an employee’s paychecks or issued in digital format.

As a business owner, if you pay your staff by direct deposit, you might need to provide them with electronic pay stubs. The Department of Labor in the US and the Fair Labor Standards Act asserts that employers are not required to issue staff payslips but still need to store records of their employee’s wages and the number of hours they worked. 

How You Can Make A Pay Stub For Your Staff

The easiest and fastest way to make pay stubs for employees is to use a paystub creator, from any of the best payroll processing software providers, or accounting or payroll software. Although you can generate a paystub manually, it is not necessary. But if you want to create paystubs manually for W-2 employees, here is a detailed process:

• Begin with the employee’s total gross pay for the pay period.

• Then add deductions for taxes withheld (federal, state, and local if applicable, as well as FICA).

• Deduct the employee-paid portion of health insurance premiums and deduct employee-elected retirement plan contributions.

• Add any other deductions, e.g., insurance coverages. 

• Calculate net pay, which is meant to be in the employee’s paycheck. 

Even though you can create paystubs manually, it is much easier for small business owners to use payroll software or a payroll service. As it automatically calculates employee pay, withholds taxes, and calculates deductions. And it also creates paystubs automatically and is accessible to staff digitally via an employee portal. 

Creating A Paystub Online 

There are various ways to create a paystub online. For example, you can access Stub Creator or Legal Forms to download a free paystub template. Please fill out the form, and send it to your staff via mail or paper format. Most accounting applications have built-in paystub makers. You could subscribe to Patriot Software, Sage, or Xero, to get free payroll setup, direct debit payment processing, inventory management tools, and other valuable features.

Conclusion 

The above process makes generating paystubs for your employees easy, although it can be tedious and time-consuming. And as stated before, there are numerous paystub generators, check stub makers and templates available online, as these templates are free in Excel and Word.