What are pay stubs and why are they important to an employer or small business owner? These may be questions you have considered over time. If you have ever been employed by someone else you will have received a pay stub at some point, outlining your pay, overtime hours, available holiday hours, and how much tax you have paid to date—as well as any other deductions that may be made.
But do you know why they are important or why you need to provide them to your employees or have them for yourself?
What are paystubs?
Paystubs or paychecks are a slip of paper you will receive, or a document you will receive by email from your employer on each pay date to outline your contracted hours, what you have worked, and what you have been paid, minus deductions such as tax.
Paystubs are legal documents that can be used as proof of employment and can show your earnings when it comes to buying a house, or just proving you have a job if you need to for any purpose.
Your pay stubs will document how much you have earned over the year and keep track of how much you have paid or owe in taxes. They are a good way of keeping an eye on your overtime also.
As an employer, if you own a small business with staff, you must provide your staff with a paystub at each pay period. This will show they are employed and give them the information they need about their pay each month, or week, depending on how regularly you pay your staff.
If you own a small business you will need to make your staff paystubs, whether you do this by hiring an accountant or using one of the many online paycheck makers, you must provide these to staff.
Self-employed and paystubs
When you are self-employed you will not be provided with a paystub but you will be paid by people. At this point, it would be wise to generate a pay stub for yourself. There are different ways you can do this.
You could send your earnings to an accountant who would keep track and tell you how much to pay in tax etc or you could use the online paycheck creator sites, such as click on this page and you will be able to create your paystub with ease.
Taking only minutes to create your paystub could not be easier. Save the hassle of having to send the information to someone else and use a site to create and track your income. This will help you keep track of how much you owe in taxes.
Summary
Whether you get one from your employer, have to give them to your employees, or need to make them for yourself. Paystubs are a fantastic and essential way of keeping track of your income, your taxes, and your overtime. A simple piece of paper and they could not be easier to make with the help of a paystub creator site.
