Learn how a pay stub generator can back your business for the better
A pay stub generator is used by businesses and their employees to keep track of payroll information, employee earnings and a host of other things like gross wages, taxes, deductions and employer contributions. Businesses use pay stubs to streamline their financial records and calculate tax returns, and employees use them for everything from making sure they’ve been paid correctly to proving their income to lenders.
Because they play such a decisive role in the calculation and administration of employee compensation on, paystubs are among the most important tools in a business owner’s arsenal. However, not everyone knows how to create them, and making a pay stub is more complex than you might think. For this reason, more and more people are choosing to create paystubs using online generators and then adapting them to the specific needs of their business and employees. Here’s why:
Preventing human error
The most challenging thing about drawing up monthly paychecks is that they’re often (if not always) different on a month-to-month basis. As tax rates, benefits, pension payments and salary sacrifice schemes change, so too does the associated paystub. Continuously adjusting a pay stub is a confusing and time-consuming process – one that’s extremely prone to human error.
Rather than keeping on top of each variable, many business owners’ solution is to reduce the amount of information they include on the pay stub. This is technically legal – and may offer a short-term fix – but it often makes it harder to identify and rectify issues when they arise later down the line (e.g. pay discrepancies and back-payments). Instead, if you choose to create pay stubs using an online generator, the administrator will calculate all the finer details for you, even taking into account things like state-specific tax laws.
More efficient payroll
As any business owner knows, third-party accounting services don’t come cheap. Using the best pay stub generator puts all your payroll-related information and accounts in one place, doing much of the work of an accountant without breaking the bank! These records can be accessed at any time, allowing employers to manage their finances more efficiently and stay focused on growing their business.
A well-organized pay stub system is especially useful when it comes time to submit to an audit – which, believe us, is a matter of ‘when’ and not ‘if’. External audits comb through your business’s financial records to make sure everything looks compliant, and mistakes or discrepancies here can prove to be costly or even criminal. Water-tight pay stubs are the best way to ensure your books are clean and avoid fines. Ask any business owner that’s been through the process and they’ll tell you: you don’t want to go into an audit unprepared.
Look like a pro, play like a pro
The old saying goes: “Dress Well, Test Well”, and pay stubs are no different. It can be difficult to be taken seriously as a small or medium-sized business, and employees and other businesses need to know that your company takes itself seriously. Paystub generators create polished documents in standard accounting formats that look like they came straight out of the accountant’s office, allowing you to make a good impression both in front of and behind the scenes.
Professionally generated pay stubs are also invaluable for employees who need to prove their income to lenders to qualify for loans and other large purchases (like a house or car). Safeguarding your employees’ financial security inside and outside the workplace will motivate them and foster loyalty. So why not save yourself time, money and a serious headache by leaving your pay stubs to us while you focus on your business.