Presented by Paystrubmakr.com By John Wolf and Tom Cullen CPA
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.
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
- 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
- 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.
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).
- 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!
paystumbmakr.com team thanks you for a visit and reading this blog Pays tub online About pay stubs
Learn how to create your pay stub
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.
You can build your pay stub right now. It is an instant pay stub. A real check stub with your deductions and income. As soon as you provide payment, you can print it, download it, and we’ll email it to you just to make sure!