A pay stub is a document that a business issue to an employee as a notice that the direct deposit transaction of their pay. The pay stub often shows items such as the gross income and all taxes and any other deductions. A pay stub template will differ among companies due to various industries and unique operational features of the companies.
Pay Stub Guide
A pay stub will generally lists both your total earnings and net pay, the total amount of money is the money that you earned this period, and your net pay, the amount of money that you get to take home with you. Your pay stub will show various deductions such as taxes, insurance, medicare and retirement savings plans. The federal government gets a piece of your income, each and every paycheck. Depending on where you live, you may or may not be required to pay a state income tax. If you signed up for medical, dental, or life insurance through your employer, your contributions to these plans will be deducted from your pay. Contributions to retirement savings plans such as a 401(k) plan will also be deducted from your pay.
Pay Stub Template
If you are running your own business, it is better to have your own pay stub template as it can suit your own business needs, there are certain guidelines you need to follow in order to build your own pay stub template
Pay stub template Style: there are various standard pay stub template you can search around to get an overview of the format, you can built your own style based on the template format
Whatever format or style you choose for your pay stub template, you need to include key elements: the pay data, the gross earnings, earnings, deductions, taxes, and net pay. The total deductions part represents everything that's subtracted from your pay. Net pay Subtract the deductions from gross earnings and you get your net pay etc.
The first part of the pay stub template is the details of employment name and employee name. In the part, you leave space for company details such as business name, address etc. The template will also give details on employee name, employee identification number or other identify of employee.
The second part of the pay stub template is breakdown of pay. You need to give description of payment term, the rate and duration of the pay. There will be various deductions for employee pay, you need to give details: Federal tax, state tax, medical tax and insurance and other deductions.
The last part of the pay stub template is the summary of payment. For example, you will give a summary of total earnings, taxes, deductions, net pay and the check details etc.