Keeping accurate payroll records is essential for businesses as it helps maintain a reference of payment dates, salaries, and taxes.
Also called payslips, paystubs help employers settle any possible employee disputes regarding net payment, as these documents keep sufficient records to help clarify gross income and deductions.
Another essential use of a paystub document is that it allows employees to demonstrate proof of income. Financial institutions such as retail banks usually accept payslips as proof of income, enabling employees to apply for long-term loans and lease agreements.
WHAT DOES A PAYSTUB LOOK LIKE?
Companies often customize the appearance of their payslips, so these documents tend to differ in appearance from one company to another. They may vary in size, and some may have unique designs. However, paystubs generally have the same basic information, which includes the following:
- Employer and employee details such as name and address
- Pay period, which is the date that the paycheck is covering
- The gross salary which is the employee’s entire income
- Employee taxes and deductions, such as health insurance
- Net pay which is the employee’s take-home pay after deductions
Many employers generate paystubs online using a reliable pay stub maker. The document is known as an electronic paystub, or e-paystub, which allows you to store payroll records electronically. The use of electronic fund transfer (EFT) is normally used in combination with electronic payslips to pay employees quickly and efficiently.
WHAT ARE THE ADVANTAGES OF USING A PAYSTUB GENERATOR?
Transferring your payroll records to an electronic process is beneficial for your business due to a number of reasons which include the following:
- Online storage: A paystub generator keeps all your payroll records online, allowing you and your employees to access information conveniently.
- Professional company image: Paystub generators create paystubs with a professional and modern design, enhancing your company’s overall branding and reputation.
- Prevention of errors: Oftentimes, employee paychecks differ from one month to the next as a result of changes in things such as pension payments, benefits, and taxes. A paystub generator calculates everything electronically, eliminating the chance of human error.
- Time-saving: Physical paychecks and paper payslips are sometimes still used by employers. However, this can be a time-consuming process. Electronic paystubs can be generated quickly, saving you time and money.
HOW DO YOU CREATE A PAYSTUB?
You can use an online paystub maker to create digital payslips that look professional. Simply enter the required details into the online generator, and the payroll software will instantly create an e-paystub. You can then print the documents and distribute them to your employees or email the digital payslips.
HOW TO ACCESS E-PAYSTUBS
An e-stub generator is a web application that can be accessed online. If your company has a payroll portal, your employees will be able to access their electronic payslips, which may be protected by a password. Employers and employees are generally advised to keep their paystubs for at least 12 months or until yearly taxes are filed.