What Is a Pay Stub?
A pay stub, also known as a paycheck stub or a pay slip, is documented proof an employer gives to their employee that provides detailed information about their wages or salary. As a part of the payroll process it serves as a record of earnings and deductions.
How To Make Pay Stubs in 5 Steps
You can create a professional pay stub for anyone who needs a record of their earnings and deductions. Here are the five steps you need to create one using our free online tool:
- - Add Company Information: Enter your company's details, including the name, email, and address.
- - Input Employee Information: Next, provide the employee's personal information. This includes their name, email, address, social security, and/or employee number.
- - Enter Income Information: Enter information about their income. Specify the pay period, the amount for this pay period, their year-to-date annual income, and the check number.
- - Add Deductions: List the individual deductions applicable to the employee.This could include deductions such as income tax, union dues, life insurance, among others. You can add as many deduction lines as needed, defining the deduction amount for each.
- - Create and Receive Pay Stub: After all the information is filled in, click on the Create pay stub. You will receive the generated result as a PDF attached to an email. You can then download it and print it or email it to whomever needs it for their records.
Who Needs a Pay Stub?
A pay stub is good for record keeping no matter your role or profession. Here's who needs a pay stub:
- - Employers: Businesses need to generate pay stubs to maintain accurate payroll records. Pay stubs provide transparency of paid wages, help you keep tabs on employee hours, and track deductions like taxes and insurance. They also serve as a record for tax purposes and can help you decide on your hiring budget.
- - Employees: Pay stubs provide employees with a breakdown of their earnings and deductions for each pay period. They are essential for understanding one's income, ensuring correct payment, and addressing any discrepancies. They are often used as proof of income when applying for loans or an apartment rental.
- - Independent Contractors: Pay stubs can serve as a record of client payment for independent contractors. You can use a generated pay stub to track incoming payments, manage your quarterly taxes, and as proof of income when applying for loans or an apartment rental.
- - Self-Employed: For those self-employed, creating your own pay stubs can make it easier to track earnings and deductions. You can also use your generated pay stub as proof of income and your financial viability when you apply for loans.
What Information Is Available on a Pay Stub?
A pay stub details an employee's earnings and deductions. Here's what's found on a typical pay stub:
- Employer Info: The employer information includes business name, address, and contact information.
- Employee Info: The employee information includes their name, address, employee identification number, and/or their social security number.
- Payment Cycle: Pay period shows the start and end dates for this particular payment.
- Wages: The wages section usually includes the rate of pay, the total amount earned for the period, and the number of hours worked.
- Tax Deductions: The itemized tax deductions section includes any federal, state, and local taxes subtracted from the employee's earnings.
- Benefit Deductions: Deductions for health insurance, retirement contributions, and any other employee benefits.
- Gross Pay: Total income earned by the employee before any deductions are made.
- Net Pay: Also known as “take-home pay,” this is the amount the employee receives after deductions have been subtracted from gross pay.
Using Pay Stubs as Proof of Income
Pay stubs are generally an acceptable document for proof of income. If a bank or landlord needs to know you can meet your financial obligations, the information on a pay stub: your earnings, deductions, and how often you're paid, is usually sufficient.
Some institutions may also require additional documents, like tax returns or bank statements to verify your financial status.
Why Use Shopify's Pay Stub Generator
Choosing Shopify's Pay Stub Generator means you're using a free, efficient, and reliable tool. Our generator is designed to simplify the process of creating professional pay stubs, saving you time and effort you can use to dedicate to other aspects of your business.
We understand the challenges and demands of entrepreneurship. That's why we're committed to providing tools and resources that support your success and make running your business a little easier.