How to Make a Check Stub
Are you worried about making check stubs for you and your employees that are well organized and legally correct?
Well, you really should be. You must get your paycheck stubs right so that your taxes are in order and you avoid legal conflicts with the tax department and your employees.
So, now you’re wondering how to make a check stub. Well, let’s dive straight in and find out.
What Do I Need to Include on a Check Stub?
Before you work out how to make a check stub, you need to know what information you are going to include on it. There are different requirements for what to include on a paycheck stub, depending on which state you work in.
For example, in the state of New York, the Wage Theft Prevention Act requires that the following information is included:
- Number of hours worked
- The pay rate
- Payment interval
- Any variable rates
- Gross and net wages
- Any deductions
- Any allowances or credits
- Employee name
- Name, address, and telephone of employer
- The term covered by the payment
These requirements give a good indication of what will probably be required in your state.
It is useful to note that quite a lot of numbers are necessary to fill out a pay stub correctly. These can become quite complicated and it’s better to avoid doing this manually.
You also need to check whether you are operating in an ‘opt-in’ or ‘opt-out’ state. This determines whether you can give your employees electronic pay stubs (instead of paper) and whether your employee has the right to refuse this.
How to Make a Check Stub
It can be difficult to find a check stub template for your state and then fill in the information required. A better idea is to use a check stub maker or check stub generator. These are pieces of software that create check stubs with all of the necessary information for your state or other jurisdiction.
The way a paycheck stub generator works is that you fill out the required information and the generator will automatically do the math on any credits, deductions, and variable rates. Another benefit of this is that you can use the same generator for all of your employees and just change individual figures (for example, hours worked).
This will allow you to create check stubs instantly, without worrying about whether your stubs are correctly calculated. You will also have the assurance of knowing your stubs comply with the law in your state or region.
Don’t Take Chances with Paycheck Stubs
Now you know exactly how to make a check stub. But make sure you don’t get overconfident. You need to take a lot of care with your employees’ check stubs.
This will save you a lot of trouble when it comes time to do your taxes, and it will also avoid any legal issues with your employees and your state tax office. The best thing to do is to use an automated check stub generator to make sure the figures are correct and the job is done right.
If you’ve found this information useful, why not check out some of our other great articles on business topics?
