If you own a business and have employees, pay stubs are essential for your accounting and for your workers.
When it comes to creating an e-stub, you can make things easier to read and understand while holding onto an electronic record of your wages paid and taxes withheld.
Read on to learn more about pay stubs, what they are, and why they’re so important.
What Is a Pay Stub or E-Stub?
A pay stub is either a printed or emailed record of the amount of pay someone receives. This document is usually given to employees on payday or along with their physical paycheck.
Pay stubs have been given to workers for decades, and they’re still important today. However, the electronic version known as an e-stub eliminates paper and gives workers a record they can store on their computers.
There are three main items that are always documented on a standard pay stub. This includes the person’s gross wages, net wages, and any taxes that are withheld, as well as other contributions.
Some pay stubs may include any paid time off the person has taken, as well as the balance of any available paid time off. It can also include things like health insurance and 401(k) contributions, where applicable. This gives employees a clear picture of where their money is going every payday.
Why Are Pay Stubs Important?
Keeping good records is crucial to any business, and pay stubs play an important role in tracking wages and tax withholdings. As a business owner, you can click here to use a pay stub generator to make the process simple.
For employees, a pay stub shows proof of employment and wages. This can be instrumental when it comes to doing things like getting a mortgage, being approved for a loan, or buying a vehicle.
The pay stub is proof of income and tax status. It should always include the payment date as well, so that it’s consistent and accurate.
Pay stubs can also be useful to help employers complete their W-2 forms at tax time. Overall, these documents serve as a record of wages and other information to keep everyone informed.
They may also need to be presented to the IRS for tax filing purposes by employees in some cases. Proof of income and any taxes that are withheld is a key part of why having a pay stub is so essential.
Use Pay Stubs to Your Advantage
When it comes to meticulous recordkeeping, e-stubs and pay stubs are crucial to any company’s success. You can use a software program that’ll generate paystubs to make the process streamlined and simple.
Whether your business is large or small, pay stubs should always be used for yourself and for your employees. It’s an easy way to keep a record of all wages and benefits paid, as well as taxes that are withheld.
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