One of the basic requirements of applying for mortgage or being able to file tax is that you have to present your pay stub and this is the reason why quite a number of employees as supposed to have a pay stub. The responsibility of making pay stubs rests on the shoulder of the employer. There are quite a number of employers that are always adamant due to the fact that the federal law does not require that pay stubs be made. You cannot shy away from the fact that the quite a number of employers who do not have a clue on how to make pay stubs for their employees. Highlighted below are some of the steps you can use to ensure that you make good and quality pay stubs for your employees.
The first thing you need to do as an employer is try and calculate the gross income of each of your employees. You need to ask yourself that how many hours that particular employees have worked for and then you multiply the number of hours by the rate which you have put as the standard rate of pay. You need to ask yourself whether that particular employee has worked for a number of hours that are not counted for in a day’s work. Determining the multiply for overtime work is quite easy in the process involves taking the number of overtime hours multiplied by 1.5. When you are the two amounts that you have obtained, you will come up with the gross income of your employee.
The next step should be calculating the deductions to be made on the gross income of employees. You need to understand that regular employees are supposed to be taxed and for this reason, you should ensure that you deduct all the taxes in accordance to the employee’s withholding rate. It is important that you see to it that Social Security and Medicare are deducted. This can be achieved by ensuring that you multiply your employees’ gross income by 0.062 and for Medicare it is important that you multiply your employee’s gross income by 0.0145. After subtracting all these deductions, what you are left with is termed as net income. It is essential for you to ensure that you include the name of company, employees name and your Social Security number. Click here