So you’re figuring out how to pay your team, and you’re learning you need pay stubs. But what are they, exactly? If you’re wondering, you’re not alone. Below, we’ll teach you everything you need to know about pay stubs—and why your team needs them.
Key takeaways:
A pay stub is a document that provides detailed information about an employee's pay. It typically includes the employee's name, pay period, and the amounts they've earned, withheld, and received. The pay stub serves as proof of payment and can be used for tax purposes, as well as to keep track of an employee's earnings and deductions.
For employers, using pay stubs can help ensure that the payment process is transparent and accurate. By providing independent contractors with pay stubs, you can help them keep track of their earnings and ensure that they're being paid correctly. This can be especially important for international contractors, as different countries have different laws and regulations regarding pay stubs.
In addition, pay stubs can also be used to keep track of taxes and other deductions. For example, if you're working with an independent contractor in the United Kingdom, it's important to be aware of the country's payroll laws, including the National Insurance Contributions (NICs) that must be paid. By providing a pay stub, you can ensure that the proper deductions are being made, and that both you and the contractor are in compliance with the law.
When it comes to creating pay stubs, there are a variety of options available, including using payroll software (like Panther!) or hiring a professional payroll provider. The important thing is to find a solution that works best for you and your business, and to make sure that you're providing accurate, detailed pay stubs to your independent contractors.
Pay stubs are an essential tool for employers and independent contractors alike. They provide a clear record of earnings, deductions, and taxes, and can help ensure that the payment process is transparent and accurate.
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 product demo call).
