The importance of pay stubs can never be underestimated in the world today especially in instances where employees have to file for the attacks or in situations where the employee has a need and want to apply for mortgage. Employees are always tasked with the mandate of ensuring that the employees are continuously presented with their pay stubs for this is their responsibility. Although the federal law does not dictate that pay stubs be made and presented, there are a number of states that require that pay stubs be presented within 24 hours of the employees pay date. Some employers find it very hard for them to come up with quality pay stubs for their employees and one of the reasons why this is so, is that they do not have the knowledge on how to go about it. Outlined below are some of the tips you can use to ensure that you make pay stubs for your employees in time without committing any error in the process of making them. You can visit this website to know more.
First things first, it is important for you to always determine the gross income of all your employees one by one. The best way to achieve this is by finding out the number of hours an employee has worked and then you multiply it by your rate of pay in which in your case is the standard rate of pay. Another thing you may want to consider when calculating gross income is the overtime hours the employee has worked. Determining the multiply for overtime work is quite easy in the process involves taking the number of overtime hours multiplied by 1.5. The gross income of your employee will be the sum of two multiplications you’ve done.
What you need to do next is to try and do a calculation on the numerous deductions. You need to understand that regular employees are supposed to be taxed and for this reason, you should ensure that you deduct all the taxes in accordance to the employee’s withholding rate. It is important that you see to it that Social Security and Medicare are deducted. It is important to note that the best way to obtain Social Security deduction is by ensuring that you multiply your employee’s gross income by 0.062 and by 0.0145 when you want to determine the Medicare deductions. You need to understand that the amount of money that will be left after deducting the deductions highlighted will be the net income of your employee. Some of the things that are required when making pay stubs for your employees is the name of that particular employee, Social Security number as well as the name of your company. Click here for more info!