Pay Stub Template: What Needs to Be Included
Are you a business owner or manager of a small to medium sized company, with one or more employees working beneath you? Did you know that by law you are required to issue a pay stub to each one of your employees at the conclusion of every pay period? Managing a business involves numerous responsibilities, but perhaps the most important of these is the calculating and issuance of regular pay stubs to your workers. This may seem like quite a hassle, but with the use of a pay stub template—a blank pay stub template in which your computer makes all the necessary calculations for you, the task is actually much easier than you might think. In fact, it can be created using your existing office software. To illustrate this, in this article we will show you How to generate UK payslip Paystub Paycheck and Payroll on your own, using nothing but your current office-based program.
How to Create an Excel Pay Stub Template
Excel is one of the Microsoft Company’s most diverse and useful program, and when you need to create free pay stub templates it can be a very helpful tool.
The reason that Excel is one of the most popular ways to create free pay stub templates is that each bit of information can be individually entered into the cells of the spreadsheet, and then altered for each one of your employees. Once the information is entered, all you need to do is use the tools you are provided within the Excel program, and set the worksheet up to do all the required calculations, including income tax, insurance and voluntary contributions to a pension or retirement plan.
An Excel pay stub template is easy to create and can be used over and over again at the conclusion of each pay period. If this is the method you elect to use when creating a blank pay stub template, below we have listed all of the information/topics your template should include.
What to Include on Your Excel Pay Stub Template
When creating this particular type of pay stub template with Excel, there are several headings or categories that must be addressed. These include:
Employer Information. Any blank pay stub template must include all of the identifying information of the employer. This includes the company name, street address (usually the address of the company’s main headquarters or central office), city, state and zip code. You may also want to include a telephone number, fax number and email address so you can easily be reached for questions about the pay stub.
Employee Information. When using these types of free pay stub templates it is crucial that you include all the necessary information as it pertains to each employee. This includes not only their name, address, city, state and zip code, but also their social security number and employee identification number, both of which are imperative for tax and filing purposes. A sample pay stub template can also include the employee’s job title at your discretion.
Payment/Income Information. Anytime you use a blank pay stub template it is vital that you create individual fields in which to record all the required payment information, as these numbers will be needed when calculating deductions. This includes the employee’s gross and net pay for the current period, as well as their year-to-date totals in those same two categories. You should also include the hourly rate at which an employee is being paid, or if the employee is on salary, the annual, monthly, or bi-weekly total he/she earns based on the current period. Overtime hours must be listed separately on the pay stub template, including the rate of pay the employee earns when working those overtime hours.
Deduction Information. When using free pay stub templates it’s imperative that you include all of the necessary deduction categories as required by law. Naturally, you will need to calculate the appropriate amounts for federal, state and local income tax. But in addition to that, you will also need to enter information such as the deductions for retirement, social security, disability and workman’s comp insurance, health and dental insurance and any voluntary contributions to retirement accounts, such as an IRA or 401k plan.
Of course, when using an Excel pay stub template you will need to familiarize yourself with the percentages used to calculate the various income tax rates, along with the percentages for things such as social security, disability insurance and voluntary contributions. This information can be provided to you by the local tax assessor or your accountant.
Once you become accustomed to using these free pay stub templates it can ultimately save you hundreds, even thousands of dollars that you would otherwise have to pay to a payroll company or accountant. The program is very user-friendly and can help you meet your legal obligation in the most rapid and cost-effective manner.