If you own or work for a business, chances are you are familiar with check stubs. Any successful employer must learn how to make check stubs.
A check stub, or pay stub, holds key information for the person getting paid. A check stub is part of the check. The pay stub outlines the pay date, amount, and the removal of funds for taxes or insurance. If a business provides physical paychecks, then the pay stub will be attached to the check.
Nowadays, everything is available online, and most firms pay their employees via direct deposit into their bank accounts. Still, developing pay stubs manually takes a significant amount of time. With new technology, employers and businesses make the process more efficient by generating pay stubs themselves. If you are a new employer, you will want to learn how to make check stubs online.
In a digital world, paper check stubs are simply inefficient. Check stub generators take minutes to create a pay stub. The online services are cheap, especially compared to paying personnel or taking time to do it manually.
The following steps will guide you on your pay stub generator journey.
Why are Check Stubs Important?
Check stubs are crucial for both employee and employer. They prevent conflict between parties by ensuring accountability and payroll compliance. According to the American Payroll Association (APA), payroll compliance is one of the most regulated functions that must meet legal requirements. Each state has its own legislation regarding payroll and check stubs.
For employees, check stubs provide official documentation proving employment. Renters, credit card companies, and other service providers often ask for proof of income before conducting business with an individual. A check stub proves that appropriate fees and taxes are deducted. Additionally, tax filing involves income verification and information on pay stubs.
Lacking legitimate check stubs puts your company and employees at risk. Credit lines decline, individuals commit felonies or fraud, and costly fees accumulate. You or others may go to prison for up to five years on federal fraud or felony charges.
Avoid conflict and run-ins with the law by taking the necessary steps in creating legal check stubs.
Steps to Making a Check Stub Online
There are four basic steps you’ll need to follow to create these documents online for your employees. It’s a much simpler process overall that people realize, and once it’s done, you’ll have a lot more time to focus on other things for your business.
1. Learn What to Put on a Pay Stub
Before actually creating pay stubs, you must know what information they require. Keep this list handy while you follow the next steps. According to Forbes Magazine, pay stubs include the following information:
- An employer’s business information
- An employee’s gross pay (earnings before taxes)
- An employee’s pay rate
- An employee’s name, address, and SSN
- An employee’s retirement or an insurance contribution
- An employee’s taxes withheld
- An employee’s net pay (earnings after taxes and contributions)
2. Pick an Online Service
Picking an online pay stub company is an important part of making check stubs online. You want to purchase services from a trusted and reasonably priced company, such as PayStubCreator.
Each company will have an individualized sign-up process, but most pay stub maker processes are similar and simple.
3. Enter Check Stub Information
After you choose a check stub service provider, the service prompts you to enter details included on pay stubs. Typically, businesses enter their company name, salary details, and work schedule.
Check out the first step on this list for more details on what to include in your pay stub. Ensure that you enter information correctly into the processor to avoid difficulty.
4. Preview and Pay for the Check Stub
Finally, you will choose a theme and preview your check stub. Confirm that you are satisfied with the check stub outcome in the preview. Review all information one more time, and make sure that the dollar amount is correct. After you preview your new pay stub, pay for it, if prompted.
Next, download and save the pay stub on your computer or the software provided by the company. Print out a copy of the check stub for your employee and print out a copy for your company’s internal records.
Well-run check stub generator services do not take long to complete. The process should be easy to finish within minutes!
Why Businesses Make Check Stubs Online
More and more employers move away from manually making check stubs each year. Now, companies use technology online to create pay stubs. The advantages encourage businesses to learn how to make check stubs online.
Pay stub generators simplify use since they already have formats in their software for you to fill out. This includes IRS guidelines and tax calculations. They make tracking payroll information easy since they store past stubs. The software’s record tracking streamlines auditing processes and dealing with taxes.
Pay stub generators also minimize mistakes. Computers generally produce less error than humans. People are prone to making errors while dealing with calculations and preparing vital documentation. Relying on a check stub maker minimizes human error. Check stub software eliminates the pressure of creating such an important document perfectly.
Lastly, pay stub generators indicate professionalism. A company with cluttered documentation screams unprofessionalism to employees and customers. An unorganized spreadsheet dedicated to payroll turns off employees. Relying on paper check stubs shows that your company lacks technological knowledge. Efficiency and organization shows that your company values professionalism.
Final Thoughts
Human error is not a myth, and any procedure that requires people to perform accurately sees human mistakes. Using a pay stub generator rules out almost all room for human mistakes.
Pay stub generators give you the freedom to include your logo and format pay stubs in a way that looks professional. Customers and employees appreciate a sleek, professional look. It provides employees and consumers with an incentive to take pride in your business services.
Before using a check stub service online, businesses kept payroll data on an excel spreadsheet. Now, check stub generators store data in an easily accessible and convenient way, thereby saving you time and effort.
