Part of managing a business is running payroll services for all your employees. This is one of the most important parts of running any business, but one of the most time-consuming and frustrating too. Large companies often partner with dedicated payroll processing companies, but the expense can be a problem for many startups.
The alternative is handling your payroll yourself. The best way to do this is to use pay stub maker software to create paystubs. But how do you actually make pay stubs? Below, you’ll find an introduction to the basics of how to create payslips.
What is a Pay Stub?
A pay stub, otherwise known as a pay slip or check stub, is a document that always comes with a paycheck. It is a report on that pay period, breaking down the numbers and showing where each one comes from.
There are several details that are expected to go on all pay stubs. Things as the employee’s name, address, and social security number; the employer’s address, phone number, and business.
What is a Pay Stub Maker?
Pay stub makers are a type of software for business management, and probably the most important development in the payroll sector in recent years. This software allows smaller businesses to manage their payroll without needing an expensive relationship with a dedicated payroll company. This process makes things easier and cheaper, and online pay stub makers offer a great alternative to the previously available options, perfect for smaller businesses that don’t have the resources available to partner with a payroll company.
Many small businesses cannot afford to work with a payroll processing company, and instead, leave payroll services to the HR department. Paystub maker software makes it easier to create pay stubs, taking care of all the details once you’ve set things up. This saves time and leaves you free to focus on the other vital parts of management.
What Info Needs to Go on a Pay Stub?
There are several different areas of important information that need to be included on a pay stub.
The first thing is general information. That’s the name, address, and id numbers for both the employer and the employee. Then, the gross wages of the employee: the amount they earn before any tax or deductions are removed from their pay.
The next feature is deductions. This is a range of things subtracted before your employee gets paid. That’s taxes, benefits, and sometimes other things.
Employer contributions cover a few different things such as the employer part of Federal Insurance Contributions Act taxes. There may be other optional contributions that you could make, such as to insurance premiums, retirement, or saving plans.
The final information is net pay. This is the single most important number on the pay stub: it’s the amount an employee actually gets deposited in their bank account for the pay period. Pay stubs should show always show net pay for the pay period in question and the total year to date.