Know How To Make It By Yourself From Microsoft Office Small Business
A pay stub template is a layout design used to create pay stubs for employees, showing an accurate record of their wages paid, and often taxes withheld from their salary. Programs that generate interactive pay stub templates are usually created in spreadsheet formats with integrated calculation formulas built into them.
Such programs allow you to simply enter the core data and have the program do the math for you instantly. These programs save you a lot of time and headaches, allowing small businesses and entrepreneurs to quickly print pay stubs on demand as needed. Some pay stub template software programs are downloadable for free, and others cost up to $60 or more, depending on what you need. Be aware that pay stub laws and requirements vary depending on where you live, and you will need to research your local requirements.
Why do I need a Pay Stub, or a Pay Stub Template?
Many employees may need to prove their source and amount of income for various purposes, such as leasing a car, making social security claims, taking out bank loans, and such cases. Pay stubs are also valuable documents that can be used as proof in court cases if needed. Additionally, in order to file your income taxes you need to be able to keep these pay stubs as records to calculate exactly how much you were paid. As a small business owner, you need to distribute pay stubs to your employees in order to establish their trust in you. Employers generally have a responsibility to explain and outline their employee’s wages and any deductions made from their paychecks. A pay stub template helps you make sure you are including all of the necessary information clearly on each pay stub you generate.
What information should be included on a pay stub template, to create a legitimate pay stub?
Here’s where the research part is important. In the United States you should check the USA Department of Labor website in order to find the requirements of pay stubs specific to each state, at www.dol.gov Some states like Florida, Arkansas and Tennessee have little regulations at all concerning pay stubs, allowing you more freedom, although these policies are subject to change. Many other states have detailed requirements for pay stubs and have specific ways you can send electronic pay stubs to employees legitimately if you want to save paper.
Generally here are some common pieces of data used on most pay stub templates:
-Name and Identification numbers of the employee being paid (sometimes this part also includes part of the social security number in the US)
-Starting and Ending Dates of this payroll period, showing the employee exactly how much time they are being paid for
-Current Employee Wage and Number of Hours Worked, including overtime hours if applicable, in this payroll period
-Gross total wages earned this payroll period
-Number of W-4 tax exemptions claimed on your income tax, for calculating tax witholding charges
-Amount of legal witholding taxes charged
-FICA tax deductions, which include Social Security and Medicare fees
-Other deductions due to your company specific policies
-The net total wages earned after deductions
-Wages paid so far since the beginning of the year until now (also called
“Year to Date” earnings or “YTD” for short), are helpful but generally optional
Can I download free pay stub templates for my own use?
Yes, you can! There are a variety of options available online, but it’s up to you to verify if the template you use to create pay stubs will actually be compliant with your local laws; therefore, use at your own risk.
Some Free online sources include:
(contains free microsoft word document software downloads)
Tips on how to create your own pay stub template in a basic spreadsheet program, based on traditional practices (using something like Microsoft Excel):
Keep in mind that it helps to save paper when printing if you create a pay stub template that reads horizontally from left to right, with separate columns for each deduction and wage amount.
1. Create your header. Put the relevant company details you want to include at the top left or top center of the page. If you have a larger company with more than one branch, the company headquarters main address and contact details will form your header.
2. In the far left column a couple of rows below the header, enter the duration of the payroll period with the exact starting and ending dates, which may be one month, one week, etc.
3. Underneath the payroll period, aligned to the left side of the page in the first column, comes the name of your employee. In the same column underneath their name should go any identification numbers they have, like a social security number. In some cases, for privacy and other legal reasons, it’s better to list only the last four digits of their social security number.
4. Under the name and ID number of the employee typically comes the current rate of salary and the number of hours worked during this payroll period, displayed like: “$12.50 x 100 hours” or in a similar format. Remember since overtime wages are higher than usual, these hours would be listed in a separate row underneath the regular amount of hours.
5. Moving to the next column immediately to the right of the employee information, list the gross salary earned before any taxes are deducted. If you are not deducting taxes because your employee is a private contractor or other similar circumstances, you can technically stop here and most of the work is done.
6. The next column to the right lists the amount of allowances claimed on the employee’s W4 form.
7. After that, you may have several more columns to the right of your employee’s info, that will itemize each deduction made for FICA tax, insurance policies, social security, state taxes, and other relevant deductions. Each deduction would be listed separately in its own column moving from left to right, labeled clearly at the top of the column. These calculations you have to figure and create formulas for according to the current local laws of your area.
8. Finally the far right column you will label as “Net Pay,” which is the total amount the employee takes home after deductions during this payroll period. The salary amount should begin on the left, and the final amount of the actual paycheck is listed clearly on the far right.
How do I use my free downloaded basic Pay Stub Template in Microsoft Excel and Word?
For an example to get you started on using these free templates, let’s look at the free pay stub template offered on this link below
Download => Pay stub Template For Microsoft Word
Download => Pay stub Template For Microsoft Excel
Here there are two options, one in Microsoft Word and the other in Microsoft Excel. The Excel version is very straightforward. The fields of information are all clearly labeled, and all you need to do is enter the correct information in the appropriate location.
Here are some further user tips to tailor the pay stub excel template to your needs:
– The “Your Logo” script demonstrates where your company logo belongs in this format. In order to modify this you need to go into the “file” menu and choose “page setup” menu, select “header/footer,” and “customize header.” The information of your business is all set to be entered here so that it will automatically be displayed at the top of each page. The far left box in the header window is where you select the file of your company logo picture from your computer. The center section is your business contact details, and the far right box is used to modify the employee information. When making multiple pay stubs for different employees, and just in general with this layout, it’s better to leave the right section of the header blank. In this way you can manually enter each individual employee name and personal information without having those labels show up in the cell boxes during printing.
-In this specific example, only the “earnings” column has an active formula attached to it, so that when you enter the hours worked and the rate of pay, the earnings in that row will automatically be calculated for you and is instantly displayed in the “earnings” column. You can add a formula for the total gross earnings cell to have it also calculate for you the sum of the entire “earnings” column. The earnings of the “year to date” column is left open to be entered and calculated manually based on your own past records.
-The “deductions” column is the one that takes the most time, because you need to research which taxes apply in your circumstances and the exact current tax rate. If you go to www.paycheckcity.com they have a lot of helpful online tax calculators that allow you to instantly find the exact tax information you need using the employee’s residential address and work address. These services are free for initial use, and there are pro services to support larger businesses that require some registration. Don’t forget you can also check tax rates at the department of labor website, as mentioned earlier. Once you have your percentage rates established, you can easily create formulas in your excel template for the cells in the deduction column. For instance, if you know the federal tax in your location is 6% (as an example only), your formula for the “federal tax” cell in the “deductions” column will be the PRODUCT(D16*.06); the total gross earnings amount times six percent.
The Microsoft basic Word pay stub template shown in this example is for demonstrating the layout only. This template is entirely dependent upon the user to manually calculate every detail, and does not allow for automatic calculations. The only real benefit in Word is that the format looks a little better.
Here’s one user tip to tailor the pay stub word template to your needs:
-You need to modify the company logo and your business data by changing the page header, similar to the way it’s changed in Microsoft Excel. In the Word top menu bar, go to the “view” drop down menu and select “header and footer.” Then you can modify and insert the correct personal information for you.
A popular choice by many people is to just spend some money and have your payroll finances automatically calculated for you in a user-friendly program, which is supremely helpful because: A) it reduces the stress of ensuring you are doing all of the calculating correctly, and… B) it saves you a great deal of time!
Microsoft Office Small Business Edition 2003 and later versions have a payroll application built into their programs that lets you enter the employee’s wage information and automatically creates pay stubs for you using their pre-set templates, which can be slightly modified.
Quickbooks programs have been used by many small businesses for many years, but they have a lot of mixed reviews. The Quickbooks software is extremely inclusive to help with tracking all of your business finances. It offers Excel integration to help you easily print out and create worksheets. It has a lot of great accounting features, but there is an extra subscription fee for payroll services.
Payroll Mate 2012 is gaining more attention due to its very affordable price. This software is featured on www.realtaxtools.com and www.payrollmate.com. Using this program, all of the relevant paycheck deductions are automatically calculated and you can print employee pay stubs, as well as checks, quickly and easily.
The many features include:
-creates entire payroll reports in exportable formats that are compatible with quickbooks, excel, and many others.
-free online updates
-compatible with payroll forms like 941, 940, 944, W-2 and W-3
-prepares you for direct deposit payroll processing easily too!
PayWindow Payroll has won the Best Business Application at the SIA People’s Choice Awards in the Boston 2009 ceremony. They offer a free 30 day trial of their inclusive accounting program, with lots of helpful online tutorials that help get you started. It’s highly customizable so you can easily track wages of different employees in the same department with multiple wage rates and other linked information, and it produces virtually every kind of report and pay stub you could ever need. This software is featured on www.zpay.com
Finally Sage Peach Tree Complete Accounting program software has many great reviews from happy customers for its reliable performance over the years. This package is one of the most inclusive for businesses, managing your vendor records, payroll, pay stub template, multiple kinds of reports, overall cash flow and profits, and includes links to online banking. They offer a support subscription to walk you through any technical difficulties when you need it the most. All of the payroll functions here are reportedly easy for anyone to use as well. It’s widely available, and can also be found for sale at www.store.hermanstreet.com.