You may be spending long hours in the office hunched over your computer, wondering how to type out invoices yourself while making sure you don’t make any errors and getting even extremely frustrated as you go along.
Creating paystubs or invoices for your employees can be tedious and challenging, especially if you don’t know how to generate them.
But we’re here to make the process easier for you. Let’s find out how you can make pay stubs for your employees without any hassle.
What Are Pay Stubs?
A pay stub or payslip is an invoice that displays the wages an employee has earned over a specific period, such as a week or month. It details the employee’s gross earnings, net pay, taxes (federal income taxes, state and local taxes, and FICA taxes), deductions, as well as insurance.
Employers in specific states, such as California, have to provide pay stubs to their employees. They have to attach the pay stub along with the employee’s paycheck (if sending it manually) or email it once the employee has been paid through a direct deposit or e-transfer.
What Should You Include on a Pay Stub?
If you’re going to provide a pay stub to your employees, you have to mention the following information on it:
- The payment date
- Your company’s name and address
- Your employee’s name, address, and SSN
- Your and your employee’s banking information
- The employee’s gross and net earnings
- Number of hours worked and the hourly pay rate and
- All mandatory deductions (such as taxes)
- Health insurance and other deductions.
- Employee contributions
- Your signature
How to Make Pay Stubs for Your Employees?
There are several ways you can create pay stubs; however, the number of employees you have has a huge effect on the type of method you choose.
For example, if you have ten employees, then buying dedicated software for pay stub creation won’t be a good investment. You would be better off with an online paystub generator.
But if you have more than 30 employees, then you would need dedicated payroll software to create the paystubs for you.
Here are some of the ways you can make pay stubs for your employees:
1. Use a Paystub Generator – Paid or Free
Paystub generators can be both free and paid and vary widely in quality. If you’re looking for a simple and cost-effective way to generate professional-looking pay stubs, then a pay stub generator is your best bet.
However, keep in mind that most free pay stub generators are usually not legally compliant and don’t possess the premium features their paid cousins do, such as privacy and security, so you’ll have to go for a paid pay stub generator.
Paystub generators are very easy to use. You just have to input the information you need to, step-by-step, into it. The generator will process this information, weed out all errors, format the pay stub correctly, and create a downloadable document for you — all in less than two minutes!
If you think a pay stub generator is going to be the best option for you, we would recommend you go for a paid pay stub generator, such as Pay Stubs Now and The Best Paystubs, because it can offer you increased security, privacy, and more control over your pay stub creation process.
2. Use Pay Stub Templates
You can use pay stub templates to create pay stubs for your employees as well. These templates can be free or secured, which means you may be charged a small fee to use the template or have to subscribe to the service for a period.
Secured templates are the best because they usually offer greater security and privacy and more features, which can make your pay stub creation process streamlined and efficient.
You could create a pay stub using a template in several ways. For example, you could visit legalforms.org, download a pre-made free template, fill it out, and then send it to your employees in printed or digital form.
Otherwise, you could use Microsoft Word pay stub templates to create a pay stub for your employees; however, this may take you more time as the format is not set, and you may make grammatical or punctuation errors.
3. Use a Payroll Program With a Built-in Paystub Generator
Some payroll management tools like Paymo, Zoho, Xero, and Sage have a built-in paystub generator that you can use to create paystubs in an instant.
You just have to enter the billing information (described above) and create professional-looking pay stubs that you can then print, download as a PDF, or send directly to your employee instantly.
However, often these tools are expensive and require monthly subscriptions, so you have to think very carefully about whether or not they will benefit you before purchasing them.
The Bottom Line
As business owners, you always want to chase your dreams to make your business successful, but sometimes, tedious realities get in the way.
If you’re struggling with creating pay stubs for your employees, then you might want to consider purchasing or subscribing to either a secure pay stub generator or a payroll management software like Zoho or Zero.
Not only will a pay stub generator help you make accurate calculations but will also save you from committing errors that can land you in hot water with the IRS.
So, rather than wondering what to do, try one of the methods we mentioned above — we guarantee they’ll make your life easier.
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