When you run a small business with a small crew of employees it can be tempting to write them a paycheck directly from your business account and leave it at that. Today that is no longer an option as most employees demand some form of pay stub. Their pay slip or stub is the only way they have of tracking their weekly income to make sure that they are getting paid properly. It is also the only way that you can show how much they are paying out in taxes. In order to create the most efficient stub you will need to use some form of template.
What Must be Included on a Pay Stub?
The laws may vary from place to place but in general the template you choose for your employee‘s pay stub must include several pieces of information. It must show how many hours they have worked in the pay period and should divide them into regular hours and overtime hours. It should also show the pay rate for each type of working hour. There should be a line that will allow you to enter their total gross pay for the period.
The rest of their pay stub is going to be dedicated to showing deductions that are taken including those that are taken before taxes and those that are taken after and including taxes. For the typical American worker who has a company shared insurance plan, these costs are deducted before taxes as well as certain medical and educational savings plans. Then there needs to be lines for federal income taxes, state and local income taxes as well as both social security and Medicare deductions. Some areas have other taxes that have to be taken out; leaving you a line for net pay after all deductions have been met.
Where do I find a Template to Help Me Out?
There are many different resources that you can use to find the right template for creating a pay stub for your employees. You can find examples in libraries that can give you an idea of what you need, but this may work as you will have to create your own stub template when you get back from the library. The best place to find a selection of different templates is the Internet. With a little research, you will find that there are sites that offer a wide variety of different styles of templates designed to cater to your needs.
You will find that many of these sites offer a pay stub that is designed not only for your type of business, but for the state your business is located in. This means that all of the necessary lines for taxes and miscellaneous deductions will be there. You will also be able to find a template for a pay stub that will integrate with most of the more commonly used accounting programs. This way your new pays stub design will integrate seamlessly into the software you are already using making the job of paying your employees that much easier.