Managing a payroll process is complex, you need to generate accurate payroll data for your employees. Each worker needs to have a detailed paystub, to understand gross wages, and all the withholdings from the pay. If you are looking for free paystubs, eFormscreator will help you.

What is a Pay Stub?

A Pay Stub lists all vital information related to the employee’s pay. When you review a pay stub, it is vital to note the difference between the current pay period and year-to-date amounts. Both of them are crucial, as YTD balance helps the employer and the worker understand if the amount is correct.

The paystub provides information about wages, tax withholdings, and benefit withholdings.

The rules regarding pay stubs vary from state to state. Some states require employers to provide pay information to the workers, while other states do not require it. Businesses should confirm these requirements in every state where they employ workers.

Employees should keep their most current pay stubs as proof of income. If an individual applies for a loan, the pay stub confirms that it is the borrower’s gross income. Employers should keep pay stubs on file if they are already generated.

The pay stub information should match the data on every employee’s W2 form, which shall be used to file their tax returns. To create paystub, the first step is to have every employee complete their Form W-4.

Read Full Article: How Can You Generate A Paystub and Calculate Wages?