Effective Ways to Make Pay Stubs for Your Employees
One of the basic requirements of applying for mortgage or being able to file tax is that you have to present your pay stub and this is the reason why quite a number of employees as supposed to have a pay stub. Employees are always tasked with the mandate of ensuring that the employees are continuously presented with their pay stubs for this is their responsibility. Even though it has been realized that the federal law does not require pay stubs, as an employer you need to understand that there are some given states that will require that you produce employees pay stubs on that very day you are paying them. A number of employers always find it very difficult to make pay stubs for their employees simply because they do not have the know-how on how to go about it. Making pay stubs for your employees can be quite easy and following the guidelines that have been highlighted underneath you will be able to make good ones.
The first thing you need to do as an employer is try and calculate the gross income of each of your employees. This can be achieved by ensuring that you determine the number of hours that particular employee has worked and then you multiply the number of hours with the standard rate of pay. You need to ask yourself whether that particular employee has worked for a number of hours that are not counted for in a day’s work. Multiplying the number of hours, the employee worked overtime by 1.5 will give you the total amount of money you will be paying that particular employee for overtime work. 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. Given the difference in its employees withholding rate, it is your obligation as an employer to ensure that each employee pays tax and for this reason, you should see to it that you deduct both federal and local taxes depending on the employees 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. It is essential for you to ensure that you include the name of company, employees name and your Social Security number. Click here
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