Advancement in technology has brought about a digital era where people can do most things online. Whether it is buying or selling things, bills payments, and even banking, people no longer need to leave the comfort of their homes or offices to get these things done. Even companies are replacing their payroll and accounting personel, thanks to technology. Today, companies and individuals can easily use check pay stubs generators to quickly produce a document of their employees or individual current pay. The pay stubs include all a person’s earnings within a specific pay period. Since the inception of these online services, many companies such as this one have started offering employers, contractors, and individuals the freedom of generating and printing their pay stubs effortlessly online, thanks to their check pay stubs generator. Here is what workers should know about pay stubs.
What is Included in a Pay Stub?
A check pay stub acts as a payslip that breaks downs an employee’s or self-employed person’s pay for a specified period. The report includes:
- The gross wages a person was paid (before deductions)
- Total number of hours worked
- Net pay
- Local, state, and federal taxes from the gross pay
- Extra withholdings, including insurance premiums
Pay stubs should be issued every pay period and the information contained should be similar to that in the employee’s W-2 form that is used in filing for personal tax returns. Before creating a pay stub, an employee needs to first complete a Form W-4 and then include additional required information.
Who is Required to Use a Pay Stub to Prove Income?
Independent contractors, employees, and contractors are required to produce pay stubs as proof of stable employment and income. Some situations where pay stubs are required include:
- When taking an auto or home loan: A pay stub confirms a person’s ability to repay the loan
- Taking a business loan: both self-employed people and contractors need to provide pay stubs to a money lending organization when applying for business loans. The document confirms their earnings and ability to repay the loans.
- Renting property: A landlord can use a pay stub to confirm that a tenant can afford to pay rent
- Applying for visas: In some instances, people applying for visas have to produce pay stubs to help verify their income
- Disability: When one gets injured and has to file a disability claim, they need to provide a pay stub, which verifies the income they were earning before the injury
For How Long and Why Should One Keep Their Pay Stubs?
Employees are advised to retain their pay stubs for at least 12 months or until they file their yearly taxes. That is because pay stubs can help them reconcile their social security contributions and W-2 forms.
Why Use a Check Pay Stub Generator?
Using a pay stub generator has numerous benefits, including the ease of the whole process. It is also fast since the process is automated. The only requirement is providing accurate information, and the tool does all the work, including calculating income tax withholdings and deductions. The future of the payroll department is a check pay stubs generator.