Presented by Paystrubmakr.com By John Wolf and Tom Cullen CPA
New businesses need an excellent product and need to be able to pay the bills until they start to make some money. To be able to accomplish your business objectives as an employer, it is imperative to validate your income to credit agencies. Showing your earnings and deductions with the apt presentation of pay stubs can help you in attaining a favorable credit score. These pay stubs show employees’ current statistical data, which includes gross pay per hour, tax deductions, benefits, and overall total compensation.
Nowadays, a pay stub is a demanded necessity by employees. Each employer should have appropriate software that will enable him or her to generate these essential documents for his or her employees.
Importance of pay stubs in the business
Pay stubs are must-haves in a company because they maintain transparency among employers and employees. The main reason is that the employees want to know the actual amount they have earned and the number and size of the deductions made from their salary. Besides social welfare deductions, such as Medicare, there are also State and Federal income taxes, medical insurance, and a long list of other possible items that be removed.
Generating a pay stub makes it easier for employees to know what led to their salary (be it monthly or annual) not being the same as their pay rate times the hours they worked. Employees who want to keep a track record of their income, as well as deducted amounts from their payment and pay stubs, hold a vital role in the employer-employee relationship. State Individual Income Tax Rates and Brackets for 2020
The Positives of creating pay stubs
Pay stubs can be easily obtained through a paycheck stub generator and then be printed on regular paper, thus saving cost and precious time from working with a large payroll processor.
As an employer, it is essential to have a good credit score when applying for a loan. For verifying the annual average income of your business, monthly financial statements are necessary. Pay stubs will aid financial institutions and agencies who scrutinize your information to quickly see the history and level of salary paid, which increases the professionalism of your organization in their eyes (hint – this will help get the loan!).
How to generate a pay stub for business?
Taking into consideration the importance of a pay stub in the smooth operation of payroll management, employers should know how to create one by online pay stub generator. That means that an employer does not need to exclusively rely on the software they are using for their accounting, which will usually charge substantial amounts to create and process paychecks. There are plenty of websites available where one could get a template with a minimal fee to generate pay stubs for employees. But, it is essential that the particular site used to be quick and accurate.
If you’re looking to create pay stubs online for your employees, then look for a secure pay stub generator so that you don’t end up wasting a lot of your valuable time. Once you find a reliable pay stub generator, fill in some necessary details and all other calculations will be done automatically. If you’re worried about trusting a pay stub generator, remember that big organizations, as well as small enterprises, already believe in the accuracy and reliability of online paycheck stubs for their employees.
Disclaimer: John Wolf and paystubmakr.com are making a total effort to offer accurate, competent, ethical HR management, employer, and workplace advice. We do not use the words of an attorney, and the content on the site is not given as legal advice. The website has readers from all US states, which all have different laws on these topics. The reader should look for legal advice before taking any action. The information presented on this website is offered as a general guide only.