What Information Should Be Included on a Paycheck Stub Template?

up close of paystub

Are you researching what to include in a paycheck stub template? Then, props to you! That probably means that your startup is coming along nicely and that you’ve hired actual employees.

It shows that you care about the people you recruited.

For your employees, pay stubs are essential. A working individual would want the assurance that you’re paying them correctly. They’ll need pay stubs if they’re going to rent an apartment or if they have to show proof of income for any reason.

It’s also crucial to the employer. Some states, such as New York and Pennsylvania, require that you provide your personnel with pay stubs. Even if you’re in a no-requirement state, you’re required by law to keep accurate payroll records, and a paycheck stub does that.

So without further ado, here’s what you should include in a pay stub template.

Basic Company and Employee Information

At the top of your paycheck template should be the company information. This includes your company name, address, telephone numbers, and any relevant license numbers.

Next up are the employee details. The template should include the full name, address, and telephone number. You can also put in their Social Security number and employee ID number.

Gross Pay

The gross pay is the total amount paid to your personnel before deductions. It should note the pay period, for example, this week or this month. If the employee works hourly, the stub should indicate the number of hours worked and the pay rate.

Issue a breakdown of their gross earnings. Ideally, it would help if you put the hourly wage, commissions, tips, and other earnings as separate line items.

Taxes and Deductions

Now for the not-so-fun part. The deductions are often the most complicated part of a paycheck stub. The reason is that tax requirements vary by state, and the deduction codes can be confusing.

Let’s look at required taxes first. You have the federal income tax, the Social Security employee portion, local taxes (if any), and unemployment taxes. State taxes vary by state, and some, like Texas, have no state income tax.

Next are deductions, like health and life insurance. These also include the employee’s contributions, such as retirement plans.

Take-Home Pay

Or the net pay is what the worker would actually receive in their paycheck or bank account. It’s the amount of gross income left after you figure in the deductions and taxes.

The pay stub should also have space for paid time off. Some states, such as Connecticut and California, have laws that require paid sick leave.

Paycheck Stub Template Design Features

Finally, don’t forget to put your company’s spin on the design of the stub for a paycheck. It’s a marvelous opportunity to promote your company’s brand. You can customize colors, fonts, logos, and even add your company slogan.

If you want to view some samples, we recommend these pay stubs templates for ease of reference.

Empower Your Employees

A paycheck stub template that contains accurate information is a big help to both you and your employees. Even if you’re not required in your state to hand out pay stubs, you should still do it for the sake of your lovely staff.

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