There’s no doubt that as a budding entrepreneur, there’s always a ton of different demands on your time. Chances are, you have limited finances, so you can’t hire specialized personnel to take care of each of the functions of the business. Instead, even things like payroll, that you may have had zero prior experience in, fall on your shoulders to complete.
Payroll, however, isn’t easy. You need all the help that you can to get a direct deposit pay stub done. That’s why you’re reading this article.
Don’t worry — you’re in the right place. In this post, we’ll explain exactly how to create a pay stub for your employees.
Always Use a Direct Deposit Pay Stub Strategy
In the digital age that we live in in 2020, there’s absolutely no reason to still be giving employees a physical paycheck. The gold standard across industry is to now use direct deposit to pay your employees. Save your workers the trip to the bank to deposit the check to access their hard-earned funds.
Moving away from a paper-based strategy also means a lot less headache for you. Not only do you not have to worry about mailing the checks, but you also don’t have to deal with lost checks or any of that kind of nonsense.
Just make sure to collect all of your employee’s bank account information during the onboarding process, right when they join the company.
Leverage Pay Stub Software
Whatever direct deposit software you use should be paired with a good electronic pay stub maker.
There are a lot of good options available for you to choose from on the market. One of our personal favorites is www.paystubs.net for its ease of use and full-featured functionality.
Take Out Withholdings
One of the greatest setbacks that a business can experience is getting on the wrong side of the Internal Revenue Service. The IRS wants their money from your employees’ income and you need to make sure that you enable them to reduce their effort expended in the tax season to figure out their tax liability.
The best way to do that is to ensure that you have the right withholdings on your pay stub. Take out federal, state, and any other taxes as needed. The most important thing that you need to do this is all of the documentation from your employees.
Make filling out IRS forms a central part of your onboarding process. If you get the documentation now, you won’t be running around in a frenzy when the end of the pay period comes around trying to get stuff together. Make life easier for yourself!
Putting it Together
There you have it — armed with this info, you’re ready to start using a direct deposit pay stub strategy to pay your employees. Your employees will thank you for implementing a modern payroll strategy.
For more business advice, be sure to take some time to take a peek at and browse through the rest of the articles available to read on the website!