You must manually process payroll if you own a small business that doesn’t have a payroll processing company. This requires you to understand your state’s laws and find your employer identification number. You also need to calculate employee hours and handle deductions. You should also provide pay stubs for your employees. Pay stubs enable your employees to keep track of important financial information such as taxes paid and allow you to keep track of payroll records. In this blog, we will talk about the best pay stub generators available in the market.
Table of Contents
- 1 What Is A Pay Stub?
- 2 What Information Do You Need To Include On A Pay Stub?
- 3 Top 5 Pay Stub Generator Free
- 4 Paystub templates
- 5 How to create a pay stub
- 6 What Is the Difference Between Real And Fake Pay Stubs?
- 7 Conclusion
What Is A Pay Stub?
A paycheck stub, or pay stub as it is commonly known, is an attachment to a paycheck containing details about the employee’s current salary and YTD earnings. The paper pay stub can be attached to physical checks by your employees. Your team would receive their paycheck stub electronically if you paid them electronically.
Your employees will be able to see their pay stubs and get a better understanding of their compensation. This includes their rate of pay and gross earnings per pay period, as well as YTD amounts. Also, any deductions are taken from their pay, such as income tax or employee benefits. You can provide proof of income to employees for things like a car loan or leasing an apartment. You can also provide your team with an online pay stub, so they don’t have to call you each time they need proof of income.
What Information Do You Need To Include On A Pay Stub?
Paycheck stubs provide insight into key areas of employee pay, such as:
Pay stubs usually include information about both the employee (including address and name) and the employer (including address and company name), and the employer’s information. This information is typically collected before the employee starts or on their first day.
The gross wages of your employee (sometimes referred to as gross income) are their pre-tax wages. This is the amount your employee earned before any state income tax or federal income tax is taken from their pay.
Hourly workers are paid gross wages by multiplying their hourly rates by their work in a given pay period. For example, an employee with a $20 hourly wage who works 80 hours per pay period would have gross wages of $1600 ($20 x80). This calculation should include overtime hours.
You would divide the salary of salaried or exempt employees by the number per year to calculate their gross wages. For example, let’s say you have a $52,000 salary employee, and you pay them weekly. Their gross wages would be $1000 ($52,000/52). Pay stubs for gross wages should contain at least the minimum information, though your state may require more.
- Both the individual pay period earnings and the YTD earnings are gross pay.
- Hours worked
- Pay rate: Regular
- Additional earnings (including overtime payment).
- Accumulated time off (including vacation and sick time)
Gross pay refers to how much your employees earn, but it’s not the amount they take home for each pay period. There are many deductions that are taken from your employee’s wages. These deductions should be listed on their pay stubs. You, the employer, are responsible for withholding taxes.
The following deductions should be added to an employee’s payslip:
- Income tax deductions include federal, state, and local tax withholdings. These taxes fund things like unemployment, disability insurance, Social Security, and Medicare.
- Employee benefits deductions (for example, for health insurance, retirement savings, life insurance, or contributions to health savings accounts)
- Voluntary deductions (for e.g., charitable contributions).
- Involuntary deductions/Wage garnishments: Court-ordered child support payments, for example.
Information on deductions, just like gross wages, should be included for each pay period as well as the year-to-date.
Contributions from Employers
Employers are required to make contributions to their employees (e.g., the employer portion FICA tax, also known under the Federal Insurance Contributions Act). Additional employer contributions may be made by you, such as contributing to the insurance premiums of your employee’s retirement plan or saving plan.
These contributions can be included on an employee’s pay stub, even though they won’t be deducted from their wages.
Employer contributions should also be listed for the individual pay period as well as the total contributions for the year.
All the information on a paycheck stub will lead to one number: the employee’s net or take-home salary. This is the amount of money that they actually bring home each payday. Paycheck stubs show both the net pay for each pay period and the YTD total pay. Direct deposit is a popular option for many employees. However, it is important that you keep track of how much money was sent to their accounts each paycheck.
Top 5 Pay Stub Generator Free
1. Check stub maker
The Checkstub Maker online pay stub generator app can manage your company’s payroll and quickly create stubs for employees. Employers can add details about their company, including employee data and payment details, to the pay stub generator with logo. This provides reliability and ease. You can easily calculate remuneration, as well as perform automated calculations such as tax deductions, employee bonuses, bonus addition, or any other health policy-based payments. You can also print it and use the personalization options to make professional stubs that are tailored to your business’s needs.
2. Shopify pay stub generator
With Shopify pay stub generator tool you can print employee pay stubs quickly with this powerful pay stub generator tool. This tool is great for creating professional-looking, printable stubs quickly and easily. Shopify’s pay stub generator is totally free of cost, so there is no need to buy expensive desktop version pay stubs.
3. Wix Pay Stub Generator
Wix Pay Stub generator with logo is another great online free tool to create customized check stubs. It’s a simple platform that allows you to customize stubs to your liking. Employers can download a copy of their stub directly to their workstations for internal filing. This tool offers a per-stub payment option with many customization options and personalization options to meet your specific HR needs.
4. Create Pay Stubs
Create pays stubs is a great tool for creating stubs and handing them to staff, regardless of whether you are doing freelance work or running a business. It allows you to easily access the state-specific templates so that you can create your stub. The online generator offers state-level isolation as well as a pay per stub service. Employers can use the calculator to calculate payroll dues and taxation information in order to create stubs that are ready to be given to staff members on time.
5. EZ Paystub Generator
EZ Paystub can be used to create custom check stubs. Employers have the option to customize the template by adding business information, photos, and images. You can manage your payroll and design stubs with ease using desktop software. It also offers bulk printing. This handy tool allows you to save time and avoid unnecessary overhead by automating the calculation of payments and designing stubs for large numbers of employees.
The templates used for pay stubs are very similar. You can also download templates for paystubs and make your own. Here are some details to remember when you create or modify a paystub template.
- Company name
- Company address
- Employee name and address
- Hourly rate
- Hours per pay period
- Year-to-date pay
- Social Security
- Employee ID number
- Pay date
How to create a pay stub
There are many ways to create a payslip. Downloading a template for free and entering the information of each employee is the simplest. For companies with multiple employees, pay stub generators can be a great option. There are other options. Microsoft Excel has its own templates for pay stubs, for instance. Excel’s free template spreadsheet allows you to crunch numbers in Excel. This is the easiest way to create pay stubs quickly and efficiently compared to other pay stub generators.
It is easy to create a payslip by simply filling in your company information and employee details. You can create your own template if you are proficient in Excel or Microsoft Word. However, there are many templates available for free. In each pay stub that you create, make sure to include the information above.
Small businesses need pay stubs. They are essential for your records and for tax purposes. There are many options available, from free templates to paid online generators. These services can be tailored to your specific needs. Do your research to find the best solution for your business. Payroll generators are essential for your company’s long-term success. You’ll need to run payroll twice per month for the duration of your business.
What Is the Difference Between Real And Fake Pay Stubs?
A paystub is essential when applying for credit or loans. While many employees receive pay stubs, others must create one. Our paystub generator will put you at the top of the list, as not all pay stub makers platforms are created equal. Our paystub generator is authentic, reliable, and very user-friendly. You can easily create a paystub for a very small amount and start moving quickly and confidently.
There are many websites that claim to be authentic, but they often copy real pay stubs and charge a small fee. They insist that their service is genuine. When choosing a check-stub maker, be cautious. Fake pay stubs, and even pay stub generators, are more frequent. How do you distinguish fake pay stubs? This is the right question.
Recent studies have shown that many incomes reported and the payslips filed were fake. The government is now cracking down on those individuals and companies. Unemployed people are creating fake pay stubs and claiming other sources of income. False information is submitted and presented as evidence. All this is required to obtain a loan to purchase a home or vehicle. It’s not worth it, no matter how tempting it may sound.
You could get in serious trouble if you create a fake document and send it to the government. You can find out if creating fake paystubs is illegal by clicking here. It is not worth the effort. There are many consequences if you get caught. Below is a list of possible problems.
- Your credit line would be declined.
- Your job could be at stake.
- You could be charged with fraud or a federal felony
- A serious penalty of up to 1 million dollars could be imposed on you
- You Could Be Facing Jail Time Up To 5 Years
A paystub generator is a great way to generate a paystub. But be sure to do your research before you make the leap. You should be aware of any legal issues that paystubs can cause. Instead, enjoy the benefits of an online generator for creating paystubs and then spend your time doing things that you love with your employees. A paystub generator gives you the gift and opportunity to save time.