For small business owners seeking simplicity, and operating on a tight budget, a free Microsoft Excel pay stub template can be a great alternative to a major accounting program. The primary key to using a free pay stub sample template in excel is doing your background research on the current tax rates for the area in which you operate you business.
There are government websites like www.IRS.gov for example, that provide the ultimate authority on current tax rates and filing procedures. From the main page of the IRS website, select the heading “Business” at the top of the page, and if you select “Small Businesses and Self-Employed Tax Center” from the options below, then choose the “Employment Taxes” link on in the left-hand column, you will have all of the forms and official details you need to get the correct rates, as well as file W-2’s and other necessary forms for your employees properly.
Out of the entire Microsoft Office Suite, the part of Office which is most suitable for creating pay stubs is Microsoft Excel. Once you have done the necessary research on the current tax rates and information for your location, you are ready to download your simple, free pay stub template sample. Go to this link:
Here you can quickly choose from the free pay stub sample templates available on the Microsoft Office website and download your preference. Please note that the Excel 2007 versions are all compatible with Excel 2010 and 2011.
Now for this example we’ll be working with one of the highest rated free pay stub templates on this website, the Bi-Weekly Payroll Calculator with Time Sheets and Pay Stubs. Once you open your new template in Microsoft Excel, you will notice there are several different spreadsheets in your template, visible as separate tabs on the bottom of the screen. Be very attentive when using this spreadsheet, as with any excel accounting templates, because several of the cells have exact formulas connected to them that automatically generate the correct values for tax amounts and other totals listed elsewhere. Do not attempt to modify the structure and layout of templates like these unless you are highly proficient in Excel, otherwise you may disturb the automatic calculations.
How To Create Pay Stub Template in Microsoft Excel
In this example, we’ll begin by entering the necessary data into the first spreadsheet, titled “Employee Info.” Enter their name, address, and identification numbers in the appropriately labelled fields. Enter their hourly wage in the wage column, and each following column is clearly labelled to indicate the various tax rates for your area and the tax allowances for that individual. The numbers listed are examples naturally, and you will have to manually enter the correct values for your location and employee. Next go to the “Pay Calculations” spreadsheet, and enter the hours worked for this pay period, checking to make sure the correct hourly wage shows up here as well. Once you’ve enter the hours worked, automatically Excel uses the data you’ve entered in the first spreadsheet to calculate all of the other tax values for the other columns.
Now your pay stub is automatically created for you in the final pay stub spreadsheet! It pulls all of the appropriate data from the previous spreadsheets together for you, and only needs the correct company name, address, and logo to be entered at the top in order to be completed.