A check stub is an important document from an employee’s as well as an employer’s point of view.
A check stub, which includes information about the payment amount, is attached to the check. A check stub maker normally includes the paid invoice number, the payment amount, and the total amount paid. It is essential to make it accurate and avoid mistakes.
Here in this section, you will learn basic mistakes to avoid while making a check stub. There is a checklist provided which needs to be overviewed before getting a final check stub maker.
Information Needed to Create a Check Stub
Every check stub constitutes certain information. These are its integral part. On a check stub you can find out the following details for each employee:
- Payroll cycle: The amount of salary paid on each payroll day is based on the number of pay periods. It establishes the beginning and ending dates for calculating hourly payroll.
- Gross and net wages: Either a salary or an hourly rate of compensation can be used to determine wages.
- Tax withholdings: Amounts withheld for federal, state, and potentially local taxes.
- Benefit withholdings: Sums withdrawn to cover the employee’s portion of insurance premiums or money set aside for retirement plan investments.
Common mistakes to avoid while making a check stub
No matter whether there is less room for any kind of mistake in a check stub maker but there are certain points you need to keep in mind while making a check stub with an online tool.
Otherwise, you may certainly make the following mistakes:
Selection of the nature of employment
It is important to put select the correct nature of employment for the employee otherwise there may occur following mistakes due to one incorrect inclusion. This may lead to the establishment of wrong data at the end of the year.
Improper inclusion of the company’s logo
No matter how big you are as a company but you cannot opt out of putting your logo.
Sometimes you are a group of companies so it may happen that you also put a different logo which may be a common mistake while making a check stub maker. You should always be careful while including a logo.
Employee and employer check box done wrong
An online check stub maker helps in creating a pay stub for the benefit of both employer and employee. Whenever it is necessary to check the category of employee and nature of employment it must be done accurately. If done with any imperfections it may result in biases in data at the end.
You should be aware that checking the box indicates you want to select the employee category. Users should use this option with extreme caution because, once paid for, it permanently affects the category of your employee.
Personal information of employees such as email id needs to be entered correctly. Whenever at a later stage a check stub is sent to his email address he might not be able to receive it due to incorrect information entered while making a check stub.
Current period vs. year-to-date data
The distinctions between information from the current period and year-to-date must be understood by your employees. Your team will be perplexed if you don’t accurately label each dollar amount. In order to ensure that their gross pay, tax deductions, and benefit contributions are accurate, workers use year-to-date data.
Outdated W-4 information
If your employees receive a pay increase, have a kid, or get married, they might need to adjust their tax withholdings. To correctly process payroll, you must have the most recent W-4. Set up a procedure for requesting updated W-4 data and using the new form for the upcoming payroll cycle.
Not only must you provide the final number in every document you transmit, but you must also show evidence of how you arrived at that number. Any additions or deductions must be documented. This implies that in addition to the basic paycheck amount, you will also need to include details about any bonuses, overtime, taxes, and other factors that could have an impact on the final amount.
You should be aware that by breaking down the process into steps, you can quickly calculate everything, provide your employees with documentation to support their pay, and ensure that the final document is error-free.
Incorrect tax data
The state and federal tax laws change from time to time. Your pay stub must reflect withholdings determined by the most recent tax law. The employee can have an unanticipated tax bill at the end of the year and possibly suffer penalties for underpaying taxes if the withholdings are incorrect.
Not including details of the business
Be aware that you must include additional information on the check stubs you create, not only about your employee but also about the business that authorizes the payments.
This means that when creating the actual paystub, you should include the name and address of the employer’s legal company, as well as any further information that may be required. The legal name and address will usually be sufficient, but you should double-check with the most recent rules and laws in your area.
Including too many details
Adding too many details can also raise a point of confusion. There can be information that is not necessary to be put on the check stub maker. In the case of social security number, only the last four digits need to be visible. The information of one employee has to be kept confidential from other employees. Unnecessary input of information is also not a great choice.
Check stub needs to be precisely and correctly made. You cannot afford to make mistakes on it. The above points will help you to encounter your general errors and not to repeat them. You can minimize the check stub errors with the use of Online-paystub.com. It is a check stub maker available online for free.
Read Related: Do’s and Don’ts of Using An Online Paystub Generator