Sample Pay Stub, PDF

What is a Pay Stub?

A pay stub is a record of the salary, commission, and bonus of employees. It is a breakdown of the amount that will be paid to them. It is a good financial record where the employees can check their paychecks. It is a kind of financial statement or earnings statement. Pay stubs also contain details about taxes and other deductions. If you have health insurance premiums or retirement plan contributions, these will be stated in your pay stub. It also serves as a receipt that employers can give to you.

Pay stubs go together with your physical paychecks. Even a small business provides a pay stub to its employees. Everyone receives a pay stub, whether you are an employee or an independent contractor. Even self-employed have the right to get a pay stub that will detail their payment. Pay stubs are an important document that needs to be accomplished in a payroll. Some compute a pay stub through QuickBooks or Excel. Pay stubs can be given weekly or monthly. Without a pay stub, we can never be sure that we have been given the right payment for our work.

Benefits of a Pay Stub

Every employer provides a pay stub. This is also called a payslip or paycheck stub. Through this, you will know the money that can be credited to your account. It is proof of income that you are going to get. Many use pay stubs because they can give great benefits to a business. Below, you can learn some of the benefits that you can get from pay stubs. Read the following:

Proof of Savings Plan: Some companies provide a retirement plan for employees. Employees have the option to add contributions to this plan. In this case, employers will deduct a portion of the employee’s salary, according to the agreed amount or percentage that the employee will want to contribute. To make everything transparent, the contribution will be recorded in the pay stub. It will detail the contribution that the employee is giving every paycheck. Through this, the employee will have proof of his or her savings plan. Employees can use the pay stub if ever there can be some issues regarding their retirement plan. So, employees will have something as evidence that they have contributed enough to the retirement plan that they deserve.Helps in Securing a Loan: Pay stubs are used as proof of income when we are getting loans. Before we can finally enter a loan agreement, loan companies require us to submit our pay stubs that can prove that we can be capable of paying back what we will loan. Through our pay stubs, loan companies can be confident that we can provide payment for our loans. There are some loan companies that will not give you a loan without a pay stub. So, this is something that you should have when you want to have a loan. It can be easy for you to get the loan you are needing through a pay stub. You can use this to assure loan companies that you can pay them back. This is a great benefit of a pay stub. Whether you are going to need a business loan agreement or a personal loan agreement, you will have a requirement that can help you.Used in Refinancing a Mortgage: Everyone has the dream to purchase a house. But not all have the money to pay for a house in full. For this reason, we have to take refinancing to afford a house. But in getting a mortgage, the mortgage company has to ensure that you can pay for the housing loan. It needs your pay stub to prove that you will have the ability to pay for installments for the mortgage. Without a pay stub that will prove that you have the right income for the mortgage, you will not be given the chance to have refinancing for the house that you want to purchase. So, a pay stub is a must when you are going to get a mortgage. Without it, nothing can be possible. You need it to convince the refinancing company that you deserve to buy a house.Getting a Credit Card: Another company that requires a pay stub before having their services is credit card companies. They need proof that you can be capable of paying what you will take as a credit through a credit card. With your pay stub, you can be given a credit card that you can use in purchasing in stores when you do not have cash. By having proof of your income, credit card companies will know that you can pay them. They can give you a good amount of credit card limit that will be apt for your salary. Through your paycheck stub, you can have the convenience of having credit cards. This will be good for you because there can be some time that you will be lacking cash. So, anytime you can buy in stores even if you are having a hard time and you do not have enough money. Or if you just lack some time to withdraw cash. Or if you just plainly want the convenience of having credit cards.Being Accepted as a Tenant: Getting tenancy agreements easier has something to do with your pay stub. Landlords nowadays are being cautious and they need proof that you can pay the rent. If you can show them your pay stub and you can prove that you are employed and will have the capacity to pay the rent, then you can be accepted as a tenant. Other requirements may be secondary for the landlords. Through your pay stub, they can have the peace of mind that you can afford the rent. They have proof that you are decently employed and will be a proper tenant. This is one of the importance of pay stubs that we can use in our everyday lives. Through it, it will be easier for us to obtain a tenancy.Proof of Employment: Pay stub is concrete proof of your employment in a company. No one can argue that you have been working within the company if you have its pay stub. There are various uses for pay stubs as proof of employment. You can use it in getting tenancy, having a refinancing, demanding a higher salary in job applications, and other things. As long as you have a pay stub, you can prove that you are employed by a specific company.

Tips on Pay Stub

It is a must that we understand our pay stubs. If we do, we know that we will receive the right amount that we deserve for our work. But how can we make the most out of our pay stubs? How can we be sure that we can get the benefits that we can have from it? Learn some of the tips that you can use for a pay stub.

Be Clear on Benefits: To ensure that your employees will not have any questions about their benefits, be clear with them about their benefits. Make a good breakdown of benefits in the pay stubs. Be clear about government benefits such as Medicare and Social Security (FICA).Be Transparent in Calculation: You have to provide a good breakdown of the income of your employees. There should be transparency in the calculation. Make everything as clear as possible. Before giving pay stubs to employees, you must double-check them to catch any mistakes. Pay stubs need to be accurate.Discuss Pay Stubs on the Onboarding Process: Employees should have the right understanding of pay stubs. They should know how to check their pay stubs to ensure that they will be receiving the right income. To make this possible, you should include discussing pay stubs in the new employee orientation checklist.

How to Create a Pay Stub

Pay stubs provide insights into employees’ paychecks. But what are the things that you need to include in a pay stub? How can you create a pay stub? The following are the steps that you can do to create a pay stub:

1. Provide General Information

Pay stubs have general information about the employee and the employer. It has the name, address, and social security number of the employee. On the other hand, the company name and the business address are included in the pay stub.

2. Compute the Gross Wage

After getting a pay stub template, you can start computing the income of the employee. Start with the gross income. This is the amount that the employee has earned within the month or week. Calculate the total earnings. This is the amount before any taxes can be deducted.

3. Compute Deductions

After calculating the gross income, you have to compute the deductions that you should subtract from the gross income. This includes taxes, employee benefits, and other voluntary deductions. You have to put in detail all the deductions in the paycheck slip.

4. Provide the Net Pay

The net pay will be the take-home pay of the employee. This is the amount of gross income minus all the deductions. Be accurate in providing the net pay. Double-check your work to ensure that you are giving a right pay stub.

FAQs

How can you make a pay stub?

If you want to make a pay stub, you can refer to any pay stub generator or pay stub template that is available online. A pay stub example can help you so that your work will be easier.

Who should be given pay stubs?

Employers must know that they should give pay stubs to all employees. If they have independent contractors, they should give pay stubs to them also.

We should be aware of how to check our pay stubs to ensure that we are getting the right salary. So, a good understanding of a pay stub is important. Now, you have learned some things that improve your knowledge of pay stubs. Maybe you want to try our available templates that can help you in creating a pay stub. Download now!