To make Your Own Pay Stub, you need to be aware of many things. You need to know details about the employee, his rates and worked hours, rules about taxation and the total year to date amounts. If you are trying to create pay stubs online free Canada, you have to know the rules of that state too. Creating a free pay stub may turn difficult if you do not know about the items or are not sure how to determine them. We will be guiding you with the important items that you need to carry out in the fake pay stubs.
This item of the pay stub template presents the amount of money that is earned by the employee for the pay period before any taxes or deductions. This amount can be different for each pay stub if the employee works hourly. Otherwise, it will remain the same unless you get a hike or add overtime hours to it.
This amount can be derived by taking the annual salary and dividing it by the total number of payments in the year. The result should tally with the gross pay of the specific pay period. For an employee working hourly basis, this can be determined by multiplying the number of hours with the rate of payment per hour. Rates differing due to shifts should also be taken into account.
There are some amounts that you have to deduct from the blank pay stubs template. These include contributions towards insurance like health insurance, dental insurance and disability insurance. Contributions made towards any kind of retirement planning also need to be deducted. The common deductions are made for plans like 401k, 403b and 457s.
There are other deductions which vary according to the state. For example, you have to follow the local tax rules of Canada if you want to make pay stubs online free Canada. Such deductions will include union dues, state income tax, state disability insurance contribution etc. You need to be aware of the rules or visit the state revenue websites for more details to make a pay stub.
There are several forms of taxes that need to be charged from a free pay stub template. It includes federal income tax, Social Security tax and Medicare tax. For income tax, one has to follow the rules released by IRS and also base it on Circular E and the employee’s W4 forms. The income tax rate starts at 15% for incomes up to $ 45,282 and rises till 33% for incomes of $ 200,000 and over.
Social Security tax is charged at 602% for a maximum wage of $ 118,500. Medicare tax to be deducted from the free printable pay stubs is 1.45% of the pay of an employee if it is above $ 200,000.
This amount is the final amount which is arrived after deducting all taxes and contributions. It is paid to employee either by direct bank deposit or by check.