In the world where almost everything gets done digitally, it may seem strange to make pay stubs for your employees. After all, direct deposit has worked fine for years.
It turns out there are a number of benefits connected to physical pay stubs. The great thing is, these benefits will extend to you as well as your staff.
Let’s go over five reasons you should provide paper paycheck stubs in addition to digital payments.
1. A Record of Paid Time Off
A pay stub isn’t only a record of payment to an employee. It also keeps track of things like paid time off.
This can come in handy when employees need to ensure they’re up to date on how many paid hours they’ve used. If they only rely on their own records, discrepancies may occur.
As a business, you don’t have to invest much to provide pay stubs with this capability. In fact, using a trusted, online paycheck stub creator is all your payroll department needs.
2. Better Financial Management
Businesses have accounting departments to track incoming and outgoing money. Although this is all done digitally, issuing pay stubs means you have an alternative record of payroll.
On the off chance your business gets audited, copies of these stubs will prove an invaluable resource. If you own a home business, you shouldn’t overlook pay stubs, as taxes for small organizations can get tricky.
3. Tax Purposes
When tax season rolls around, your employees can use paycheck stubs to ensure all their information is correct. They can reference last year’s stubs to ensure their W-2s match up.
One of your employees may also face an IRS audit. If this happens, they may need to provide stubs to the tax agent.
When creating pay stubs for your employees, make sure they look them over for any errors. This includes all their personal information.
4. Tracking Benefits
Your employees need to ensure all their benefits are getting properly deducted from their pay. A pay stub is a quick and easy way for them to see actual dollar amounts.
In addition to showing income tax and social security dedications, paycheck stubs can also show insurance, 401K, vacation time, and sick days.
By issuing pay stubs as well as digital payments, your staff will always have a running account of yearly deductions and time off they’ve accrued.
5. Proof of Income and Employment
A physical pay stub can come in handy if an employee needs to verify their employment or monthly income. This information is necessary when renting an apartment, applying for a loan, or buying a car.
Although they can obtain this information digitally, having a paper copy will make the process easier. Plus, sometimes a paper copy is required.
Make Pay Stubs for Your Staff and Give Them Peace of Mind
Although most people get paid by direct deposit or another electronic medium, having a physical copy instills peace of mind. It also provides another level of security and financial management for your payroll department.
Consider the benefits discusses above and start to make pay stubs for your entire staff.
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