As an employer, it's important to provide paystubs to your employees & contractors. Pay Stubs are an essential document that outline the details of an employee's or contractor's pay, including their gross pay, deductions, and net pay.
Here's a step-by-step guide to creating a paystub, along with a sample template to help you get started.
Key takeaways:
Start with the basics
The first step in creating a paystub is to include the basic information, such as the employer's name and address, the employee or contractor's name and address, and the pay period and payment date.
Calculate the gross pay
Next, calculate your employee or contractor’s gross pay. This includes any regular pay, overtime pay, or bonuses that the employee or contractor is entitled to.
Determine the deductions
Deductions are any amounts that are taken out of the gross pay, such as taxes, social security, health insurance, and retirement contributions. Make sure to calculate the correct amounts for each deduction.
Calculate the net pay
The net pay is the amount that the employee or contractor will actually receive after all the deductions have been made. This should be prominently displayed on the paystub, as it is the amount that the employee or contractor will actually see in their bank account.
Include additional information
Finally, include any additional information that might be relevant to the employee or contractor. This might include year-to-date totals, vacation accruals, or any other important details.
Sample Paystub Template:
[Your Business Name and Address]
[Employee or Contractor Name and Address]
Pay Period: [Pay Period]
Payment Date: [Payment Date]
Gross Pay: [Gross Pay]
Deductions:
[Item 1]: [Amount 1]
[Item 2]: [Amount 2]
[Item 3]: [Amount 3]
[Item 4]: [Amount 4]
Net Pay: [Net Pay]
Additional Information:
[Year-to-Date Totals]
[Vacation Accruals]
If you have any questions or require additional information, please don't hesitate to contact us.
Sincerely,
[Your Name and Title]
Creating a paystub may seem daunting, but with this simple guide and template, it can be pretty straightforward. By the way, Panther can make managing your pay stubs and invoices even easier.
Here’s how…
If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Panther, which saves you 90% the time you spend on contractor paperwork each month.
With Panther, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.
Sound interesting? Click here to watch a 4-minute product demo and see the platform firsthand (without ever having to book a lengthy demo request call).
