Tips on Creating Pay Stubs for Your Workers
There are always methods you can come up with to help you reduce the expenses in your business. Creating pay stubs for your employees is one of the methods you can apply. Perhaps you do not give pay stubs to your workers, it is the high time you started doing it. If an employee needs to apply for a loan, the financial institution requires him or her to hand in their pay stubs learn. Making pay stubs is a simple task provided you have the right equipment for this job. If you were outsourcing an individual to make the pay stubs for you, doing it yourself will be much cheaper. If you know nothing about making these pay stubs, this article will give you a few guidelines.
The gross income of every employee is the first thing you need to figure out. Gross income usually comes before any necessary deductions are made to the salary. If you have been running your business for several years now, you have a spreadsheet which helps you identify how much you pay your employees. It is easy to calculate how much an individual earns since it is given by the rate paid per hour multiplied by the number of hours worked for in a month. Do not forget to add the number of extra hours keyed in by an employee.
The next step is to calculate the deductions that are to be made to the gross income of each employee. The law requires for certain deductions to be made by every employee who earn above the minimum wage. Such deductions include, withholding tax, pay as you earn and medical cover. If you do not know what is supposed to be deducted from every employee, you could look for a tax expert to help you out. Once you have the right percentages, you can create a column on your spreadsheet that automatically deducts these payments click.
The net income of an employee is what you get after factoring in the deductions. This is the amount of money that a worker receives in his or her bank account. After all the deductions, this is the figure that should appear on his or her pay stub.
As an employer, you can use the internet to generate pay stubs. You can easily download a pay stub template on the internet and fill in the form so that it can process the pay stub.
The only thing left for you to do is create the pay stubs for your employees. The effort of creating pay stubs will be of much help to the employees.
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