A pay stub is a document that is earned by an employee from an organization, which contains the salary or remuneration he/she has earned for a given period and other details. The document shows the salary, deductions made to calculate taxable income, as well as the effects of taxation on the final sum that is to be paid.
Some reasons why is it important
- Pay stubs are important papers that serve as a basis for the calculation of income tax. To avoid problems with tax calculations, an employer is required by law to provide a payslip to their employees for tax purposes.
- They display details on how much money you earn and how this money is calculated. All deductions from your salary such as taxes, insurance payments, and benefits are included in your pay stub. This way, you always know how much money you get after all these deductions have been removed.
- Employees can use their payslips when applying for bank loans or opening bank accounts since they contain information about their salary which will be used when calculating the amount that they can borrow or deposit into an account.
- From time to time, employee requests for payslips are used by managers to see if the way they calculate salary is correct. It is also easy to spot errors that have been made since all details are displayed on a payslip.
How can you make pay stubs easier with online payrolls?
The answer is simple, just use an online payrolls service. With the advancement of technology, especially in software development, there are now many companies that have come up with different online services that are based on payrolls for companies, including pay stub creator, which can sometimes really save the day. Online payrolls can improve an organization’s time and money since they do not involve files that need to be carried around from place to place. They also allow employees to see their payslips anytime, anywhere as long as they have internet access.
Why is this easier?
- Employees don’t need to go through their managers to request their payslips; they can directly log in and see them whenever they want. There is no need to wait in line at the human resources department, call or go personally for your payslip details when you can see them online anytime, anywhere you are.
- Managers won’t be overwhelmed by having many files of paper works that need supervision since all information will be stored electronically. All employees’ data can easily be managed because it is stored in one database, which makes management easier too.
- You save money transporting files from one office to another since all information is electronic and does not take much space on your hard disk drive or flash drive, which you can carry around with you.
- It is easy to track payslips since managers can easily keep track of all their employees’ files on the system without the use of files that are carried around from place to place.
- Communication between different employees is easier because they just have one portal which contains information about them and this portal can be accessed by everyone who needs it anytime, anywhere as long as they have an internet connection. This makes communication faster and more efficient since interactions will no longer need meetings where lots of time are wasted trying to reach a consensus.
- All information is stored electronically, therefore companies are guaranteed security against data loss or corruption caused by human error or natural disasters such as floods, fires, etc. Moreover, the system updates immediately when information is altered or added, thus security is not compromised.
Not only can an individual use a pay stub for tax calculations and applying for bank loans, but it is also a useful tool that helps employees and managers to communicate with each other in one place. Having a payroll system allows information access to be faster while ensuring security against data loss.