Did you know that 40% of small and medium-sized businesses face payroll tax penalties each year? Errors in processing payroll are the reason for these penalties that cost businesses billions of dollars. You should consider payroll software to stay organized and to demonstrate how to get pay stubs to your employees. They need these records to track their income, taxes, and deductions. Keep reading below to learn the benefits of using a pay stub generator.
Reduce Administrative Time for Processing Payroll
It’s no secret that processing payroll can be long and complex. This becomes even more complicated if you have a larger staff or contract freelancers. What exactly goes into processing payroll? Checking employee hours, overtime, calculating gross pay, determining deductions, calculating net pay, and finally issuing payments. Although many businesses deal with the payroll on their own, it’s smarter to use specialized software. Information can be inputted and employees can receive their pay stubs online. This kind of service can save you hundreds of hours of staff time.
How To Get Pay Stubs To Prove Income
From an employee’s perspective, receiving a pay stub with their check is very important. These are proof of income documents. Anyone who’s ever applied for a car loan, mortgage, or personal loan knows that you have to show how much you earn per year. Pay stubs are an easy way to demonstrate your salary. For freelancers or workers who’re self-employed, these pay stubs are even more vital to get a loan. Many lenders want to see at least two years of stable income before they’ll approve a loan to someone who works as a freelancer or is self-employed. Pay stubs are also a helpful record to track your yearly tax withholdings and benefit deductions. Employers make mistakes too, so checking pay stubs can help you correct any issues. There are many services out there but you’ll want to check out the ultimate paystub generator from The Pay Stubs. Avoid Costly Errors Using a Pay Stub Generator Even the smallest payroll errors can have big consequences for your business. With most businesses now hiring both in-person and online staff, it’s easier than ever to make a mistake.
Some of the most common errors include:
- Paying employment taxes late
- Misclassifying employees
- Processing online payroll through the wrong state
- Miscalculating overtime
- Being disorganized with your records
These types of errors come with big tax penalties from state and federal governments. In the case of miscalculating overtime pay, you could also lose a civil case from an employee on top of any penalties from the government.
Invest in Reliable Payroll Software
Your experience or knowledge of payroll doesn’t matter. Investing in reliable software is a smart decision. You won’t have to worry about how to get pay stubs, instead, you can focus on managing your business. In fact, check out more of our website if you’re interested in learning more tips for running a business. Our articles discuss dealing with contract workers, data management tips, and even choosing office space.
