6 REASONS EVERY SMALL BUSINESS MUST USE PAY STUBS
A pay stub is essentially a document that depicts the payment made to an employee at the end of a pay period. Usually, it contains information such as gross pay, federal tax, state taxes and exemptions like medical insurance. While large businesses typically have dedicated teams (in-house or outsourced) to build and distribute payslips, small firms may sometimes decide to skip this crucial business function. This, however, is unwise.
Why Small Businesses Should Use Check Stub?
Here are some of the major reasons that even small companies must regularly generate and share payment records with their teams:
1. Employees get proof of their income
Whether your firm has a small team or a huge workforce spread across continents, every employee needs proof of income. A paycheck stub is a simple but effective way of sharing payment information for loan applications, medical insurance or credit facilities.
2. Payroll processing is much simpler
If you are a small-business owner, you may not have a separate finance team. Handling payroll becomes easier when you generate stubs for your employees. Using an online paystub maker can simplify things further by maintaining payment records (say, in your inbox) and performing calculations for you. Some tools like the enhanced stub creator at StubCheck.com also let you fine-tune the information you wish to display on the stubs.
3. Payment-related errors get minimized
To err is human. However, tax auditors see payment-related errors very seriously. Building stubs routinely using financial software or a digital stub maker lowers the likelihood of accounting errors. Your calculations for gross pay, taxes, retirement contributions, etc., will be error-free, and your anxiety levels as a business owner will dip!
4. Your company gains a positive perception
When your workforce gets stubs at the end of every pay period, it tends to feel more positively about your establishment. Not only are payroll check stubs a straightforward way of maintaining transparency, but you also facilitate any financial needs employees may have that mandate proof of income. A positive reputation is an excellent way of attracting fresh talent to your business and lowering attrition rates.
5. Auditing and tax-season become easier to handle
Audits and penalties can be terrifying even for large businesses with deep pockets. Small businesses need to be particularly careful to avoid such hefty fines that can eat into their profits. Maintaining timely stubs is an effective way of streamlining your company’s finances and taking the stress out of tax season. Even if you use a pay stub maker free online, you will find that the digital records simplify your annual finances considerably.
6. Overall costs come down with regular payslips
At first, investing in financial software or building online payslips may seem to be an additional cost. However, over time, this turns out to be an expenditure that keeps your overall costs low. You save time ferreting out old payment records; you also avoid incurring fines for a no-show. If you use an affordable or a free check stub maker, the costs involved drop further. For instance, at StubCheck.com, a regular stub costs $3.99. You don’t need to spend anything to store the stubs as they get sent to your inbox.
Check stubs are simple documents that, when built and maintained in a timely manner, reap rich dividends for the organization. Consider making them a vital component of your financial management.