Getting paid should be a simple process, but freelancers and small business owners still struggle with payment issues.
Freelancers aren’t employees; they technically provide services. Therefore, they’re not paid with a traditional W-2 form. Instead, they send invoices to clients, and clients pay in due time.
Since service providers use invoices, they need a system that organizes finances. That’s why pay stub templates are an ideal companion to spreadsheet and accounting software.
Pay stub generators also help independent contractors prove income for apartment rentals and leases. Traditional business owners can also generate pay stubs if an employee needs a copy.
Are you ready to cut your accounting time in half? Start with this simple guide to filling out pay stub generator templates!
Which Pay Stub Templates Are Best?
Pay stub generators have evolved to accommodate varying industries, needs, and style preferences. Start by choosing the right template for your accounting needs.
For example, you could use a template that generates a bi-weekly earnings check for 9-5 employees. This template is a good solution for small business owners.
These templates include the following information:
- Name of employee
- Employee ID
- Project start date and end date
- Check dispersal date
- Total earnings for the pay period
- Hours works
- Current “year-to-date” earnings
- Tax deductions
You can also include the last four digits of employees’ social security numbers. Independent contractors can use these templates but don’t include tax deductions, SSNs, or employee IDs.
These templates come in a range of formats and styles. You can also include your company logo and tagline.
Stubs for Independent Contractors
Independent contractors must keep track of services rendered. If you don’t itemize your services, you risk losing money by accident.
If you work with freelancers, you can generate a 1099-Misc form. However, this form isn’t necessarily required. Freelancers can report income on a 1040 schedule C form, which means they’re responsible for documenting their earnings.
If a contractor asks for a 1099, you can use a 1099 pay stub template.
Have the following information on-hand:
- The reported tax year
- Your company’s name, address, and ID
- Freelancer’s contact information
- An EIN (or SSN for sole proprietors)
Some states, like California, require certain freelancing professions to operate as small businesses. Therefore, you would need an EIN from freelancers in these states.
Are you an independent contractor yourself?
You, too, can use a paystub generator online to create stubs for proof of income, rentals, leases, loans, and financing.
What Not to Do
Filling out an online stub template is easy, but don’t land in hot water!
Falsifying information on freelancer check stubs is a big no-no. This mistake could cost you that rental or loan. Worse yet, you may end up in a legal pickle.
Small business owners must also avoid false information at all costs. You don’t want to get in trouble with the IRS for stub errors.
Payments Made Easy
It’s time to get organized.
Discover the pros and cons of pay stub templates for yourself. Follow these tips to generate your first stub and learn more about the process.
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