If you’re a small business owner, you know that tracking your expenses and managing your finances is essential to your company’s success. One way to do this is by creating pay stubs for your employees. A paystub template can help you do this quickly and easily.
The small business industry is growing and evolving rapidly, so it is important to use the latest technology to keep up. By utilizing such tools as a paystub template, you can keep your business organized and efficient.
According to the U.S. Bureau of Labor Statistics data, the demand for hourly workers increased nearly three times from 2020 to 2021. With this increase in hourly workers, it is more important than ever for small business owners to use a paystub template to ensure accurate and efficient payment.
Many types of pay stubs can be created using template applications, and they vary depending on your business’s needs. In this article, we will cover them all and discuss their advantages and disadvantages.
Overview: What is a paystub?
A pay stub is essentially a document that provides information about an employee’s most recent pay. It shows how much was earned, the number of hours worked, and overtime, if any. A printable pay stub contains this same information, but it also includes the employer’s logo for branding purposes.
The federal government requires that employers issue pay stubs to their employees so they can ensure these individuals are being paid properly. However, the employer doesn’t need to send a hard copy of the document home with the employee after each payday.
As a business owner, it’s also in your best interest to create paystubs when you file your taxes. This is because it allows you to quickly and easily calculate the amount of taxes that will be withheld from your employee’s paychecks.
It is important to understand that not all pay stub templates are universal. However, when you create one using template samples available online or via application software, it will be designed so that your business can use it easily and efficiently.
Types Of Paystub Templates
There are four main types of paystub templates that can be used to create a document that will best suit your company’s needs.
1. Hourly Paystub
This is the most common paystub template that employers use. If applicable, it provides an employee with the number of hours he worked, his hourly wage, and overtime. This is great for small businesses because it keeps the information about an individual’s work history right at hand.
2. Salaried Paystub:
This template provides employers with a breakdown of their salary over each pay period that includes any bonuses or commissions, if applicable.
However, there is no information provided about hours worked because salaried employees are paid for their work rather than the time they spend on it. Therefore, this type of pay stub will often show only annual figures to accommodate this difference between hourly and salaried workers.
3. Profit-sharing Paystub:
This model focuses primarily on earnings, so there is very little other information included in it. You can customize your profit-sharing paystub by adding additional categories that best fit your company’s needs.
4. Commission Paystub:
This template calculates how much commission an individual is owed based on their sales. Instead of inserting information about how long an individual worked, you will insert the number of sales they made for this pay period.
What should be included in a paystub?
Every pay stub should include the following information:
Hours Worked: This should be listed in a column to the left of each pay period.
Gross Pay: This is the amount your employee was paid before taxes were taken out. It should provide both weekly and annual figures.
Net pay, or take-home pay: is the portion of an employee’s income that he takes home; it is also known as his gross salary. This section provides both weekly and yearly earnings based on their hours worked and hourly wage.
Taxes: Listed here are the types of withholdings (income, social security, and medicare) placed on an individual’s wages by the employer; this information typically includes two columns showing amounts for weeks and over 52 weeks.
The reason why it includes a 52-week figure is so the employee can see his annual earnings that will be included when you submit your employees’ W-2 forms at year’s end.
Additional Information: This section provides information pertaining to what deductions have been made from an individual’s pay. It includes details about benefits, payroll taxes, or other items that are not deducted at the moment of payment.
Paystub templates come in different formats and can be altered to meet the needs of your business. Paystubs in general are beneficial for both employees and employers, whether you own a small business or not. This will help you avoid headaches during tax season and will keep your financial statements balanced.
The key is making sure what you do send home with employees includes all the relevant information they need regarding their pay rate, hours worked, and any other type of deductions made from their wages.
When choosing the right template, it is important to think about your employees. Are they hourly or salaried workers? Do you want a detailed breakdown of their earnings, or would a simple calculation be more suitable? You can select paystub templates that will keep both the employee and employer happy by considering these questions.