Paystubs are incredibly useful for employees for many reasons. Firstly, individuals get to know the breakdown of their income through stubs. This knowledge can be beneficial during appraisals. Additionally, paystubs are helpful as evidence of employment when people seek loans or new jobs. Digitized pay stubs are convenient to employees as well as employers, and these documents are environmentally friendly too. Plus, online stubs are easy to set up and generate.

Details to include in employee pay stubs
Although online payroll check stub makers automate the process and include all key details in the pay slips, employers must ensure that certain details are included.

Gross earnings
In this section, employees will be able to see how much they have earned in a week (or month, in case of end-of-month payroll pay stubs) before any deductions. Gross earnings include details like regular pay amounts, overtime, and other standard income sources. This section also generally shows the hours a particular employee has worked. For hourly workers, the specific time work and its corresponding pay rates will be mentioned on the stubs. Additionally, the pay rates for different categories, such as overtime and regular hours, need to be clearly differentiated.

Commissions and bonuses
Besides the standard pay, employees also need to know how many bonuses and perks they have pocketed during the month. This section may or may not contain information related to reimbursements.

Deductions
This is the most critical element of pay stubs. In this section, employees will know how much federal income tax and state income tax they have paid.

Health insurance premiums
Many companies offer health insurance to their workers. The insurance policy premiums for such health insurance policies are deducted from the gross pay section. The amount deducted and where it is going needs to be specified in the “health insurance premium” subsection of the online payroll pay stub.

Retirement plan contributions
All employers also need to deduct a portion of an employee’s salary every week to add it to their retirement plan contributions. Some such contributions include SIMPLE IRA, 401(k), or other employer-sponsored plans selected by the employee.

Net pay
Finally, the net pay section shows the amount paid to workers of an organization after taking out all the deductions and taxes from their gross salary.

Process of setting up paycheck stubs online
The step-by-step procedure of setting up paycheck stubs online is easy and includes the following components:

Entering the employer’s business details
Once an employer installs and opens a payroll check stub maker on their system, they will see multiple templates to set up and generate payroll pay stubs for their employees. The first step involves using one such available template and then customizing its details so that the company’s website information and logo appear front and center on each stub.

Entering employee information
Only for the first time will employers need to manually type in each employee’s (and every new recruit’s) information on the digital stub-making portal. Once these details are entered and saved, the rest of the process gets easy. The employee details must include data such as their name and employee ID number. Some employers may even prefer to put in additional information such as a given employee’s date of birth and date of joining the company.

Entering complete salary details
This is the most vital section of a payroll pay stub. In the template, employers can enter details such as the paycheck number, payment period, and pay date. The stub maker’s calculator will use these saved details from the chosen template and display the details on each employee’s stub efficiently. Essentially, this is a part of the stub creation process that takes hours when done manually for each worker.

Entering additions and deductions table
The employers will be able to enter the tax amounts and other deductions made to a given employee’s gross salary in the template. The automated calculator does the rest, subtracting these deductions and showing the net amount on the final stub.

Preview the finished paystub template
Finally, after entering all the details, employers can preview the payroll pay stub to verify whether every bit of information is included. Once that is out of the way, employers can automate the process of emailing stubs to their respective employees through their company email.

Employees receive stubs
Once this process is automated, employers need to feed in the critical information, and the stub will be designed, calibrated, and sent to individual workers in a matter of seconds. The final stubs reach the employee in PDF format or any other familiar format on their work email ID. Employees can then view their paycheck stub easily.

Mistakes to avoid while creating paycheck stubs online
Here are some of the common errors to avoid while setting up paycheck stubs online:

Incorrect state selection
Putting in the wrong state can lead to the stub-making system calculating state taxes with the incorrect percentages. Therefore, employers must ensure that the state name is correctly mentioned in the stub.

Missing out on the company logo
Companies need to establish that a given stub is created by them for their employees. Without a proper letterhead, a stub has no official status.

Missing out on employee designation
Many companies automate the bonus and commission payment part in stubs. If they make mistakes in entering the designation of workers, then employees will receive bonuses and commissions much higher or lower than their pay grade.