How to Create a Pay Stub for your Employees?

Whether you are legally required to issue your employees a payroll that tracks their earnings on a monthly or weekly basis, do so. This is certainly a policy that all entrepreneurs should adhere to, because this has a lot of advantages for both employees and them. This way you keep records and have all payout companies in one place. So, your employees get paid for their hard work and deserve documents that are proof of their earnings. However, you equally deserve this because you always have proof of income with you.

However, this payroll must contain some important information. And in the first place is certainly the amount of the employee’s salary, where he works and which employer. This document is given to employees for a salary. If you are not sure how to get to it or where to start when creating, keep reading. Below we have explained the creation of a pay stub.

Advantages of pay stab

So, as an employer, you have an equal obligation to the state and employees. The pay stub is just the most reliable way to track revenue and the general circulation of finances. It is also used as legal evidence if all the information within it is one hundred percent valid and supported by law. On the other hand, the people who work for you need to have insight into the cash flow. If you provide them with a pay stub, they will have the opportunity to get a mortgage, car loan, and credit cards. Each type of loan is supported with it, because it is an insight into the complete financial history. Of course, provided it is not in question

What do I need to make a paystub?

Now that you’ve realized how important it is to use this method to keep records of employee earnings, it’s time to learn how to create it. You can choose between several ways, but first deal with mathematics. So, use some program in which you will make tables. For example, Excel or another program can help you take the first step. In this way, you will categorize finances and create templates that you will constantly use for each employee. Of course, you will always keep them as a record, so it will be a template for you as well. How to make pay stub? Once you have done the basic thing you can really start creating a pay stub for your employees. Check stub maker for more information.

How is an employee’s salary calculated?

When we tell you to focus on calculus first, I mean specifically the three basic processes you have to go through. In the first place, it is the gross salary. So this is the point from which it all begins. In order to do this successfully, you need to divide the entire annual salary of the employee by per diems in that period. Of course, sometimes it is necessary to deduct a certain amount of money and this happens in special cases, for example, it refers to unpaid free time, etc. We’ll talk more about that later. On the other hand, we have overtime work, which also counts, and that would mean the opposite. Then it is necessary to add a certain amount of money in accordance with the number of hours that the employee worked. Taxes and similar items are not included in the gross salary. Once you have calculated the total value you have a starting point for all other calculations.

What is a deduction?

Let’s explain this step in a little more detail. Of course, it is clear to you that this means subtracting from the total amount of money earned by the employee. However, this applies not only to unpaid days off but also to taxes. For example, we have social security taxes, state taxes, etc. These are all deductions. In addition, there is a pension fund, and the money intended for it is also considered a deduction. So, there are several factors that affect the total amount of money that should be deducted.

Keep in mind that this will not always be easy to do. One of the more common problems is a situation where a certain area does not charge a local tax. So check this item before you start calculating. Don’t forget this step, because without it you can’t finish what you started. The pay stub implies absolutely every deduction that must be precise. Trust us you don’t want fake pay stubs. They should stand separately, without a combination of taxes, etc.

How do I determine my net salary?

In the end, we come to the net salary, and that is the amount with which you close your account. After all the deductions and allowances you have had on an employee’s earnings stands this relationship. So it will be located as the final digit on the pay stub. It is this amount that your employees will take home and that is why it is important that you perform all the above steps correctly. Keep in mind that this is a big responsibility and that you can’t do everything yourself, but you don’t need an assistant.

What should I use of the tools?

When it comes to calculations, it is very easy to deal with the previously mentioned program and similar, but other tools are needed. You can always print the information on paper, but you won’t actually do that because it’s pointless. Today there are so many choices just as you wouldn’t have to do it and burden yourself with unnecessary work as an owner. On the other hand, none of the banks and other companies will accept this kind of work. Either way, you need an online pay stub maker like Paystubsnow.

Those tools will help you find fantastic templates and many other features. For example, you can fill them out and send them to your staff in digital format. You can also edit it later to customize them to your needs and more.


Business checkbooks are a thing of the past, and traders and owners have found a new way to pay their employees properly. Don’t miss the opportunity to be one of them, because it is not difficult at all. This part of the business has evolved and today there are companies that can offer you fantastic services, and employees deserve to provide them with the exact amount of taxes and profits. In that case, the most important thing is the software. We hope we have helped you successfully complete this process.

Peter is a freelance writer with more than eight years of experience covering topics in politics. He was one of the guys that were here when the started.