Statistics from the Internal Revenue Service (IRS) show that the tax agency dealt with around $3.5 trillion in collections in the fiscal year of 2019.
There are many tools and systems in place which help the IRS to carry out this gargantuan task. Pay stubs are just one of these.
Pay stubs contain a lot of vital information about the way people get paid, including their gross pay and deductions. If you’re an employer, you’ll have to complete these stubs for all of your workers.
Read on to learn where to get a blank pay stubs template and how to use one.
Using a Blank Pay Stubs Template
There are many different ways to approach the production of pay stubs, but using a blank template is normally the easiest.
When you find a paystub generator online, you’ll just need to populate the blank stub with the information relevant to each of your employees. This is much easier than creating a template yourself.
What You’ll Find on a Pay Stub
There are a few different pieces of information to be found on every pay stub. Without the items of data below, no pay stub will be complete.
Gross pay is the full amount an employee is paid before taxes come out of their wages. It’s their hourly rate multiplied by the number of hours they work.
Of course, the employee will never see this much money in their bank account. A percentage will always go towards taxes.
Net pay is the amount of money left when all taxes and charges are taken from an employee’s pay. This is the amount they’ll see coming into their bank account at the end of each month.
Federal government income taxes apply to every American worker. They fund the operations of the federal government, including the production of legal tender and the supply of military resources
As well as federal taxes, most workers have to pay state income taxes too. These generally fund the operations of the state, such as the running of schools and hospitals and the construction and maintenance of amenities.
However, state income taxes are not the same for everyone. Some states charge relatively high rates of income tax, while others charge none at all.
Some workers may elect to have a percentage of their income deducted by their employer to go toward savings schemes, such as IRAs. These payments are deducted before tax is calculated, which means they can reduce your overall tax burden.
Getting the Right Pay Stubs Solution in 2020
Without a blank pay stubs template, you could end up spending a lot more time than you need to completing payment information on behalf of your employees. Thankfully, the technological advancements available nowadays can save you a lot of time here.
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