What is an Employee Check Stub or Paycheck?
A pay stub, also known as a paycheck stub, summarizes an employee’s gross pay, net pay, taxes, and deductions.
Employers use pay stubs to understand income, and tax amounts withheld, and as proof of payment.
Who Needs to do Payroll Calculations?
Everyone into the business! Be it an employer with an SME or a soaring empire, payroll is a basic necessity. Also, self-employed individuals (who are bosses to themselves!) need to track earnings for filing taxes. So, anyone receiving a real pay stub needs it for tracking income, filing taxes, and applying for loans.
Why are check stubs important?
Proof of Income: Essential for loans, credit cards, and mortgages.
Record Keeping: Helps track earnings and deductions for tax and budgeting purposes.
Employment Verification: Proof of employment for various purposes.
Wage and Hour Compliance: Ensures compliance with wage and hour laws.
What does a Pay Stub include?
No matter the stub creator you use, the professional paystub template features these details:
➛General Information of Employer and Employee
➛Pay Rates
➛Gross Pay
➛Taxes
➛Employee Contribution
➛Benefits Deduction
➛Paid Time Off
➛Year To Date Earnings
➛Net Pay
Deductions on an Employee Pay Stub (as applicable). Let us also mention, that these details will not be featured on paychecks for independent contractors. Don’t be surprised because they are not liable for any tax deductions.
➛Federal and State Income Tax
➛Social Security and Medicare Tax
➛Health Insurance Premiums
➛Retirement Plan
➛Contributions
➛Wage Garnishments
How to confirm the accuracy of Taxes and YTD on Check Stubs?
Our tool calculates taxes and YTD values accurately based on current tax laws. The tax rates are automated according to the state selection made. So, there is no way chance for mistakes to remain.
It is way more convenient than traditional pay stub calculator software.
When will I receive the check stub?
Users receive paystubs via email immediately after making a payment. With this said, please enter the correct email ID else you may have to repeat the process!
How to do Corrections on the pay stub?
Unlimited corrections can be made before completing the order. Once your check stub is dispatched, you cannot go back and make corrections with the same paycheck. Contact our support team for assistance after completion.
How to Make Payment for completing the order?
You may make payment at your convenience. Any debit or credit card can be used.
Do you keep user information safe?
Data security is a priority, and our site is encrypted to keep user information safe. Be assured regarding data safety as we don’t cash our users’ information for bucks!
Why are Contractor Check Stubs Different from Employees?
Contractor pay stubs do not include withholdings, as payments to contractors are not subject to federal and state withholdings. You can distinguish it easily as you see sample check stubs online.
What is Year to Date (YTD) and why it is used on paychecks?
Year to Date (YTD) on paychecks shows the total earnings and deductions from the start of the current year to the present date. It’s used to track cumulative income, taxes withheld, and deductions, aiding in financial planning, tax reporting, and budgeting.
What is FUTA?
It stands for the Federal Unemployment Tax Act. It’s a federal law in the United States that imposes a tax on employers to fund unemployment benefits for employees who lose their jobs.
The tax is calculated as a percentage of the first $7,000 of wages paid to each employee during the year.
What are W2 Forms?
W-2 forms are tax documents issued by employers in the United States to employees. They summarize the employee’s earnings and the amount of taxes withheld from their paycheck throughout the year. Employees use W2s to file their income taxes with the Internal Revenue Service (IRS).
