Almost every business now uses EFT payments to pay their employees. It’s an easy and cheap way to pay your employees. However, with these payments, pay stubs tend to be forgotten.
Pay stubs provide many benefits to a business. They are also easier to create than you think, especially with online tools such as PayStubCreator. The process is super easy and just takes a few minutes. This article will walk you through the simple process.
What Is a Pay Stub?
First, we need to look at some terms and understand the importance of a pay stub for an EFT payment.
Simply put, a pay stub documents the money an employee receives from their employer. It is like a receipt for an employee’s services. It itemizes work hours, salary, deductions, vacation pay, sick pay, and any other information pertaining to their payment.
A pay stub is also known as a paycheck, check stub, or paycheck. It can be distributed electronically or physically.
Pay stubs also have information about the current pay period and year-to-date (YTD) earrings. They include the gross salary and, ultimately, the net earnings for each employee. All this information can be used both by the employer and the employee. We will discuss those reasons below in the importance of a pay stub.
What Is an EFT Payment?
An electronic funds transfer (EFT) is what a business, institution, or government utilizes to collect or pay money electronically. An EFT can be either an employer paying an employee or a client paying a business.
Essentially, it is the direct deposit that has replaced the paper checks. EFT payments can be made between the same bank or different banks.
Electronically paying employees is more secure, efficient, and less expensive than doing it with a paper check. It is also more eco-friendly.
There are different types of EFT payments besides the direct deposit, which we will be focusing on. For example, using your debit or credit card is a form of EFT payment.
Why Is It Important to Have a Pay Stub for an EFT Payment?
Having a record of your EFT payments will be super helpful to you and your business. Here are five reasons why a pay stub is so essential.
It Makes Tax Season Easier
As an employer, you are required to provide a W-2 form to all of your employees. These pay stubs will make filling those out and getting them ready to give to employees that much easier. All the information you need will be in one place.
If you still want help creating your W-2 forms for your employees, pay stub Creator also helps with W-2 forms. The service handles the process online.
It Helps Keep Track of Your Expenses
Since pay stubs have an itemized list, they give you a comprehensive breakdown of all expenses. A key benefit of pay stubs is allowing you to have a record of those expenses.
If you forget that you gave someone a bonus and all of a sudden your expenses are higher, you will easily be able to remind yourself of that because of the detailed pay stubs you keep.
It Creates Transparency for Your Employees
As mentioned above, pay stubs are an itemized list. They include an employee’s total hours, gross wage, salary, deductions, vacation, and sick pay. Your employees will not have to ask or remember any of this information because they receive it with each paycheck.
It Provides Proof of Income
Many of your employees will ask you for proof of income at one time or another. They might be applying for a loan or an apartment. Instead of having them come to you and ask for the paperwork, they will already have it. This ensures there is less coming out of the blue to be added to your plate.
It Ensures Your Business Is Growing
When you are just starting out with staff or contractors, it can get confusing to keep track of everything. It is beneficial to have pay stubs to help keep track of your growth as a business.
You may also find specific benefits to you and your business.
How To Create a Pay Stub for an EFT Payment on PayStubCreator
PayStubCreator presents the process as straightforward and low cost. All you need is your employee’s information and a computer. At the time of writing the service listed a price of $8.99 per pay stub; check the current price on the provider’s own site before ordering.
Here are the seven steps to creating a pay stub with pay stub Creator.
- Go to the PayStubCreator website.
- Click on the “create your pay stub now” button on the homepage.
- Fill in all of your company’s information.
- Next, fill in all of the employee information. You need to have the employee’s name and social security number.
- Fill in the salary information. In this step, you will have to decide if you want to go by the hourly or annual salary rate.
- Next, you will preview your pay stub. Here you can choose from four templates to make the pay stub look professional.
- Finally, you will pay and place your order for the pay stub.
Why Choose PayStubCreator?
PayStubCreator states that it has served hundreds of customers. The company reports more than 600 reviews of its service, most of them five-star. These figures are the company’s own and have not been independently verified. It reports an overall rating of four out of five. It describes its service as quick and easy to use.
The provider also publishes a business blog. Find articles on pay stubs or other topics like human resources, finance, taxes, and many more.
A generator of this kind produces a pay stub containing the standard required information. One caution worth stating plainly: a pay stub is a record of wages actually paid. Generating a stub that misstates income — for a loan, a rental application or any other purpose — is fraud, whatever tool produced it.
