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Paycheck Stub Template: What Needs to Be Included
Are you an employer or owner of a small service or product-related business, with one or more individuals in your employ? If so, have you considered how important it is to issue paycheck stubs to your employees—aside from the obvious reason that you are required to do so by law? The task of creating paycheck stubs is one of great importance, one that offers benefits to both your company and the employees who work there. The problem is this can be a very laborious and time-consuming chore, especially when trying to calculate the various salaries and rates of many different employees by hand. Fortunately, there’s an easier way. With a paycheck stub template—an Excel paycheck stub template made using one of the most popular Microsoft programs—this job can be very manageable and easier than you might think. To illustrate this, in the following article we will outline the many items of information that, when added to a blank paycheck stub template, can help you save hours of time and lots of money, while meeting your legal obligation.
Paycheck Stub Template: What Needs to Be Included
Whether you decide to create your own paycheck stub template or borrow a sample paycheck stub template from the Internet, there are a few items of information that must always be included:
• Company Name. If you decide to use one of the many free check stub templates on the Internet—templates that can be found on many business-document sites—you must be certain there is a space to include your company name and contact information, including your full address, email address and website information, if applicable.
• Employees Name and Details. On your blank paycheck stub template you must include the name of your employees, their full address, including city, state and zip code, and most importantly, their social security numbers, as these are legal documents that may be required later for tax purposes.
• Gross Income. The gross income portion of your Excel paycheck stub template is the area in which you will record the employee’s earnings for that pay period before any deductions have been applied.
• Net Income. Net income, also referred to as take-home pay, is the amount for which the paycheck will ultimately be written—the total amount the employee earned after taxes and other deductions.
• Year-to-Date Gross Income. Year-to-date gross income is the cumulative amount an employee has earned thus far in the calendar year, prior to any tax or other deductions being applied. This information is very important for your employees, especially when they need to show proof of income when making a large purchase on credit, such as a home, car or major appliance.
• Year-to-Date Net Income. As you may have guessed, the year-to-date net income line of your paycheck stub template is the sum of each paycheck an employee has received in the current year.
• Income Tax. When searching for a sample paycheck stub template online, you’ll need to be sure that template was created for a business in the same state or region in which your company is located. That’s because the overall amount of income tax withheld, including federal, state and local tax, depends on the state in which the employee works and where the company does business.
• Retirement/Pension. If your company has a retirement or pension plan, one into which the employee makes a contribution each pay period, this information must be included on your blank paycheck stub template.
• Insurance. Depending on the location in which you conduct business, in terms of insurance there are many different categories you should look for when searching for free check stub templates. These include health, dental and vision insurance, as well as disability insurance and workman’s compensation—a type of safety net should an employee become injured or disabled while working for your company.
• Social Security. Regardless of the state in which you do business, each employee of your company is required to make a contribution to social security, a federal program that’s a type of savings account the employee will draw from once he/she reaches retirement age.
• Voluntary Contributions. When creating an Excel paycheck stub template it’s crucial that you include any voluntary contributions the employee has requested be deducted from each paycheck. These contributions can be for retirement savings accounts, such as a Roth IRA or 401k plan, or charitable deductions to a non-profit organization of some kind.
This may seem like an awful lot of information for a paycheck stub template, but despite the lengthy description we provided most of these items take up very little space.
Once you have created your blank paycheck stub template using the Excel program (or borrowed a sample paycheck stub template from the internet), complete with each of your employee’s information, you can now use this template every month to easily create, issue and save each stub.