You can create paystub online for free. However, you do need to know that it’s important to enter all the details correctly. While it is perfectly natural for your State or Government to have different policies to deduct money from wages, you as an employer need to know about your Government policies.
Things to note when you create paystub online for free
Remember to note the different Government policies and duties of employers. A lot of employees receive paystubs as stated by the labor and employment law. This is a mandatory procedure where the employers need to create paystubs employees so an employee should have an understanding how his or her pay is calculated. Moreover, the amount which is deducted from the paystubs, the employee should know why it is deducted or what is its relevance.
Amount deducted for Social Security purposes:
Each employee need to pay for social security purpose and this amount is withheld from the paycheck. The Federal Government decides on the amount which needs to be withheld from the paycheck amount of an employee. Thus, this justifies the need to create paystubs so an employee is aware that it is for his benefit in the future. The amount is 6.2 percent for monthly earning and as per the FICA the employer will also contribute the same 6.2 percent here.
The SSN deductions are withheld by the Government which is paid monthly to employees on retirement. Similar, medical withholdings are as important as the SSN holdings. Each employee needs to pay a percentage of their payable amount to Medicare and this share is contributed by the employer as well equally. So, 1.45 percent is payable by the employee and 1.45 percent is payable by the employer as well. If an employee is eligible for social security then, the employee gets the coverage for medical expenses as well and that is why Medicare is deducted. This helps to meet the medical expenses in case an employee gets sick or ha an injury.
The year to the date field:
An employer can create paystub creator to determine all the different deductions correctly. For example, one more important component is year to the date field on the pay stub, that shows how much one has paid towards the particular withholding at any point in the calendar year. This is very helpful for long term goals and budgeting the monthly expenses. As an employer, you need to know this field well so that you come to know how much you have paid for a particular withholding. This can result in managing expenses well and ensuring high savings.