What Information Do You Need to Include on a Paystub?
When you create a paystub with software like https://www.thepaystubs.com/ you need to make sure all of the following types of information are fully present on the stub. Do not try saving money by taking shortcuts here – all of this info is vital.
Basic Information
First is basic identifying information. That includes information such as the name and address of the employee who will receive the pay slip. It also covers information to identify the employer, including your company name and official address. All of this information must be collected before the employee in question starts work.
Gross Wages
The gross wages or gross income of an employee are their full wages before tax. That means the money they earn before deductions for pension contributions, income tax, or other taxes are removed from their pay.
Deductions
There are a number of deductions removed from any employee’s wages before they actually get their pay, and these all need to be fully included on their pay slips. As an employer, you are responsible for withholding taxes, so make sure you do it carefully.
You should check your state’s specific employment laws to see which deductions apply to employees in your state. The most common are income tax deductions, employee benefits deductions, voluntary deductions, and involuntary deductions.
Employer Contributions
Employers are required to make a number of contributions for their employees, such as the employer portion of contributions for the Federal Insurance Contributions Act tax. You can also make voluntary contributions towards things like the insurance premiums of your employees and their savings or retirement plans. These optional contributions can be included on pay slips, although you should note that they are not deducted from wages. You do not have to include them on your paystubs, but doing so can help to make things clearer and easier to track for both you and your employees.
Net Pay
The last thing you need to include on a pay stub is the net pay the employee takes home for the pay period, which is probably the most important number on the entire slip. Net pay, otherwise known as take-home pay, is the final amount of money that the employee actually gets to take home after removing all of the various taxes and deductions. All pay slips should show two numbers here: the net pay for the specific pay period and the full Year To Date total net pay.
Conclusion
There is not actually all that much info needed for a pay slip, but if you are entering it all manually, it can take a while. Software such as https://www.thepaystubs.com/ can make a huge difference here, helping you with saving money and time in the long run.
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