As an employer of your Shopify powered brand, you need to provide regular paystubs to your employees. This is essential for tracking vital things like tax and income, not just something nice you can do to fill job vacancies. Working out the information you need to include when you fill out a pay stub can be difficult, though, so we have put together a guide to the basics to help you.
Below, you will find a guide to the basic information you will need. If you want to simplify the process still more, though, you could try using paystub generator software. Click here to discover more!
What is a Pay Stub?
A pay stub accompanies a paycheck and contains important information about the recipient’s pay. A paystub must be attached to each paycheck without fail.
Employees can use pay stubs to help understand their take-home and net pay, clearly spelling out any deductions such as benefits or tax that may affect them. Pay stubs also function as proof of income for essential things like rent payments, as well as helping you to keep track of company finances in clear detail.
What Information Goes On A Pay Stub?
When you fill out a paystub, all of the following areas of information must be fully present on the payslip.
The first thing that needs to be included at the top of a pay stub is basic identifying information for both employee and employer. That includes things like name, address, contact info, and identification numbers.
The gross wages of an employee are their total pre-tax wages. That means all the money they earned in the pay period before any deductions are removed from their pay.
Gross wages should show how they are calculated, though certain states may require additional information to be included, such as overtime or time off accumulated. Check your state’s regulations.
There are several deductions that are subtracted from an employee’s wages before they actually receive their pay, and all of these deductions need to be included on their payslips. The employer is responsible for withholding taxes, so you need to do this carefully and diligently.
Employers are required to make certain contributions for their employees, most of which are tax based. There are also some voluntary contributions you can optionally make, like insurance, retirement, or savings contributions. These can be included on payslips but do not have to be. That being said, including them can improve the ease of tracking finances for both parties.
The net pay the employee gets to take home is the number everyone cares about the most. Pay stubs should show both the net pay for the individual pay period and for the entire year to date.
Understanding how to fill out a pay stub is an important part of running a business in any sector include online commerce. Hopefully, the guide above should help you to get started with correctly filling out pay stubs for your employees with all of the essential information on every single one!