The Ways To Make A Pay Stub As An Employer Or Contractor 2021

Presented by Paystrubmakr.com      By John Wolf 

World Health Organization

To prevent infection and to slow transmission of COVID-19, do the following:

• Wash your hands regularly with soap and water, or clean them with an alcohol-based hand rub.

• Maintain at least a 1-meter distance between you and people coughing or sneezing.

• Avoid touching your face.

• Cover your mouth and nose when coughing or sneezing.

• Stay home if you feel unwell.

• Refrain from smoking and other activities that weaken the lungs.

• Practice physical distancing by avoiding unnecessary travel and staying away from large groups of people.

• Coronavirus WHO

While a pay stub is not mandated by federal law, it is a great policy to provide your employee with a pay stub to accompany them to take a look at every month or week. Some states require that you provide your employees with a pay stub within 1 day of the pay date. You may also be required to keep copies of the pay stubs for various reasons, so it’s always a good idea to manage them appropriately anyways. Read on to find out ways to make a pay stub for yourself or your employees without investing in expensive software or hiring a bookkeeper.

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Why is a pay stub essential?
A pay stub acts as proof of your earnings. It also indicates your contribution towards taxes and other deductions. These are things like taxes, pension funds, social security, and Medicare contributions. You and your employees may require proof of income for the following reasons:

• Renting a house
• Applying for a loan/finance or mortgage
  

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• Requesting credit

If you want to be clear about your taxes, keep records of deductions and withholding up to date. This is also helpful while filing tax returns. In case of dispute with an employee, pay stubs always serve as a record of all payments and withholding regarding employment. Let’s figure out how to make a pay stub that meets all these requirements.

2020 and 2021 are special years because of the COVID-19 pandemia. Some tax paying was left for better times.

The Congress passed four different programs.

Coronavirus Aid, Relief
Economic Security Act (CARES Act)
Families First Coronavirus Response Act (FF CRA)
Consolidated Appropriations Act

How to make a pay stub for your employees?

1. Calculate your employee’s gross pay
Gross pay is the place, to begin with, a pay stub. For a salaried person, this is straightforward. All you need to do is to divide their annual salary by the number of paydays per year. In some cases, it may be necessary to deduct money for unpaid time off. This comes off the total gross pay.

2. Calculate the Deductions
It is imperative that you make use of a way to make a pay stub that shows all the relevant city, state, and local

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• Federal, State, and Local Tax deductions

The relevant Federal Taxes are calculated at the employee’s gross income and can be set up on the IRS tax tables. You will notice that the amounts differ according to the marital status and whether the employee is the head of the household or not. Remember that not all areas charge local taxes. Check with your local authority to be sure.

• FICA Tax Withholding (Social Security and Medicare)

To calculate these taxes, you need to multiply the employee’s gross pay by 6.2% for social security and 1.45% for Medicare. As an employer, you need to match these amounts.

3. Work out Net Pay
This is the amount that remains after all the deductions and additions to the employee’s gross salary or wage and is the amount that will appear on their paycheck.

How to make a pay stub for yourself?

If you pay yourself a salary out of your company account, you will have to calculate the above in exactly the same manner as for your employees.

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How to make a check stub online?

Now that you have done all the calculations and have the figures at hand, we can show you how to make a pay stub for yourself or your employees.

• Open up our online pay stub maker
• Select your state of residence from the menu. (This will calculate any state taxes for you).
• Check the box according to whom the paystub is for (i.e. yourself, or one of your employees).

Fill:

• All the personal details
• The company details
• Input the rest of the required information (Salary, pay per hour, hours worked, overtime, or bonuses).
• Fill in the amounts for deductions and withholding.

To learn even more tricks to kick-start your financial empowerment, visit https://paystubmakr.com!