Online Check Stubs: Simplifying The Payroll Management Process
Payroll can be challenging. From calculating wages and deductions to keeping up with regulations, contractor rates, vacation days, and other details, the triviality of processing payroll can overwhelm any employer. Not only that, but many of the payroll solutions available are too complex to meet a small business’ needs.
Its no wonder that many business owners are looking for the best ways to save costs and manage their employees, the most valued assets of the organization, to ensure greater productivity. Most of all, there are other preliminaries which are also needed to be taken care of, including all the nitty-gritty details of running a business! Most small business owners typically write checks for their employees’ salaries every pay cycle without realizing the need to preserve a record of employee earnings. Sometimes business owners don’t realize that company efficiency is improved when employers have documentation demonstrating tax and other payroll deductions since this is often requested by government agencies and other outside parties. Pay stubs are the answer, and business owners should make sure they understand the best ways to use them.
Your online paystub generator
What is a Pay Stub?
A pay stub is a part of a paycheck that lists all the details about the employee’s pay. It details the wages earned for the pay period and year-to-date payroll. The pay stub also shows taxes and other deductions that have been taken out of an employee’s earnings. And, it shows the amount (net pay) the employee receives.
To improve payroll management better, employers can give electronic or printed pay stubs to their employees. In some states, it is mandatory to provide pay stubs. The information required to be included in the pay stub also varies state-by-state. The employer can keep a copy of each payroll stub for future records.
Use of Pay stubs
A pay stub consists of all the information both employers and employees need to understand the impact of the payroll run. By reviewing pay stubs, employees can clearly understand their deductions and also make sure they were paid correctly. If there is any discrepancy in pay, it can be solved easily by reviewing past pay stubs.
Information in a pay stub
There are many details included on a pay stub to help an employer as well as employee to keep track of payments and deductions. Generally, the items on a pay stub can be segregated into three parts:
• Gross wages
This is all the money owed to an employee before taking out the deductions. It can be divided into hours worked, pay rate and gross pay.
• Taxes, deductions, and contributions
Like Gross Wages, taxes and deductions are separated into two categories: 1. current deductions and 2. year-to-date amounts. Common deductions found on pay stubs are employee tax deductions, employee deductions for benefit contributions and employee contributions to certain savings plans.
• Net pay
This section includes the amount left over after subtracting deductions from the gross pay. It is the employee’s take-home pay. Paycheck stubs also reflect the regular working hours along with the gross pay rate.
Apart from keeping the employees informed of the amounts paid and the deductions, pay stubs to help in keeping a record for the purpose of paying taxes and other useful information.
There are many online pay stub generator websites which offer the online service of generating online check stubs quickly. Some template software programs have similar functionality and frequently accounting software packages can create a pay stub conveniently, thus making the entire payroll system smooth and easy.