Do you find yourself staring at your document wondering what is a paystub? With any luck, your employees are happy with their paychecks. Yet are you filling all of their paperwork out correctly? To understand that, you have to understand the elements of a pay stub. That means answering the big question: "what is a pay stub?"
Keep reading to uncover the mysteries of this question!
What Is a Paystub?
On the most basic level, a pay stub is proof of payment to an employee. It also helps the employee to understand the difference between what they were paid and the amount they take home due to factors such as taxes and voluntary deductions.
To understand more about what is a paystub for employees, you must understand more of the function that it serves.
Why Hold On To Copies?
Both employers and employees should hold onto copies of old employment pay stubs. In fact, there are a variety of good reasons to do so. Employees should hold on to checks to verify tax info and to help them rent homes, apply for credit, and generally prove their employment status.
Employers should hold on to paystubs for business tax purposes as well as to help with any payment disagreements from your employees. Now that you know what is a paystub, you can understand why they are so important. Let's learn about the best ways to generate them!
Generating a Paystub
Fortunately, it's quite easy to generate a paystub. In fact, you can start by using an easy and convenient pay stub generator!
However, accurately filling out the form details requires you have a lot of information on hand. Keep reading to see how we break all of this down to make it easier.
First, you'll need to fill in various employee details, including things like their name, address, and social security number. You can also set the withholding rate for the state and optional info such as the number of dependents they have.
Next, you'll need to fill out your own business info. That means uploading your logo and filling in things like your company name, address, and tax ID number.
Finally, you add the salary info for your employee. You can set it up via their annual salary or their hourly pay. Be sure to add pertinent info on this screen about their deductions, the check number, and so on.
All you do now is review the info, select and template, and proceed to pay and download the pay stub you need!
It never hurts to brush up on the subject of how and what is a paystub. Viewing some example stubs, for instance, can help you become comfortable with generating your own stub. Of course, this is another reason to hold onto copies of the old checks you've generated: it helps you double-check the accuracy of your new stubs!
The Bottom Line
Now that you have an answer to "what is a paystub," you may still have questions about generating them before you get started. Fortunately, we've got answers! PayStubCreator is here to make your life easier by providing a fast, secure, and convenient way to create pay stubs. To see how easy we can make your job as an employer, come check our awesome pay stub creator!