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3 Tips For Using a Pay Stub Generator
My boss asked me to start my presentation with a joke so I used my pay stub on the first slide. A pay stub generator is no joke. It can be a great help to small businesses and employees alike.
You’ve decided to graduate from video driving games to a real car but you’ve hit a snag. The real car needs finance and for that, you need real pay stubs to get approval for a loan. Because you are self-employed or work for a small business you don’t have them.
Pay stub generator services are available but how do you get the best out of them? Read on for 3 tips for using a pay stub generator but first what is it?
What Is a Pay Stub Generator?
A pay stub is a document we retain after cashing our payroll check. It can act as a proof of income and is a convenient record of salary, taxes and other payments. Most people get a pay stub from their employer.
Some employers have in-house accounting and payroll software to produce pay stubs for their employees. Many small businesses and self-employed people use a pay stub generator.
The employer or employee provides information such as the employer’s name, work hours and salary details. The generator makes the calculations for tax for you and presents the information in the form of a printable pay stub.
So here are 3 tips for using a pay stub generator.
1. Stay Legal
Getting that loan for your new car needs that all-important pay stub. You don’t have one. So, how do you escape from this predicament?
It might seem easy to generate some fake pay stubs. You could complete an online service with fake employer information and fake earnings. Don’t do it.
This is illegal. Banks do checks for this kind of fraud. It may result in fines to the tune of $1 million or a jail sentence of 30 years or more.
What if you are employed and have legitimate income but no pay stubs? What if you are an employer and your employees would benefit from pay stubs? Use a reputable generator backed by an accounting firm to generate legitimate pay stubs.
2. Essential Financial Records
When you use a pay stub service you can have your pay stub in a number of formats. You can have pay stubs as physical paper documents or in a digital format such as pdf. This becomes important when you consider how you want to store these essential financial records.
Employees will need pay stubs each year when you pay your taxes and reconcile social security payments and W-2 forms. Keeping them safe until you need them is important.
Employers also need to keep payroll records. As a small employer, a pay stub service can take some of the strain by calculating tax deductions. Use copies of the pay stub as records for the IRS.
Consider keeping them in a digital format. Cloud-based storage solutions include Dropbox and Google Drive.
3. Prepare for Speed
Using a good pay stub service is straightforward but you can save time with proper preparation. Check out the online tool beforehand or take some time the first time you use it. Make a list of the information you need for fast data entry.
Assembling this information beforehand can mean that each pay stub takes no more than 2 minutes to create.
A pay stub service is a simple and effective way for employees to receive important pay and tax information.
To learn more about pay stubs click here.