Dos and Don’ts of Using a Pay Stub Maker

A pay stub is an essential document for any employer to prepare for their employees. It acts as proof of payment for work completed. Employees use pay stubs as their proof of employment when applying for car loans, rent applications, and for other necessities. Not only is it essential to create pay stubs for your employees and contractors, but you must also make sure the information is accurate. Errors on pay stubs can result in unnecessary admin work, tax ramifications, and disgruntled employees and contractors.

Here are the dos and don’ts for using a pay stub generator to create accurate and professional pay stubs.

Do: Proofread And Review

The key to creating pay stubs that can be used for proof of employment is making sure the information is accurate. The format and design must be neat, professional, and legible. Ensure your pay stub maker has an automated calculator so you can be sure all the numbers add up correctly. The sloppier the pay stub is, the less likely others will see it as legitimate. Be sure the numbers add up and that the design of each pay stub is consistent.

Don’t: Forget To Include Important Information

Making a pay stub can be confusing for people who don’t work in accounting or payroll and time consuming for those that do. Your pay stub must contain specific fields such as gross pay and deductions like EI, CPP, federal, and provincial taxes. These amounts will vary depending on how your employees or contractors are paid. Using a pay stub generator that auto-populates these fields will ensure your stubs contain all the necessary information.

Do: Make Sure The Calculations Are Exact

Be sure to avoid estimating and rounding values or your pay stubs will not be useful for your employees and contractors. If they try to give inaccurate pay stubs to landlords or accountants, they will run into some trouble and cause issues.

Don’t: Use Free Pay Stub Generators

On top of looking unprofessional, free pay stub generators often require you to manually calculate deductions, which can leave them prone to errors. Free templates are tempting when you consider the other expenses you have to think of as a small or medium business owner, but it often requires more effort than it’s worth.

Do: Use A Professional Program

Using a professional program can significantly increase your productivity and the quality of your pay stubs, but you need to know what to look for first. Examine how the pay stubs are formatted. Ensure the columns and headers are consistent.

The website should also be secure so that you know you are not being scammed or giving your employees’ information out to untrustworthy people. Verify that the company has a customer service department that will answer questions and help you troubleshoot any issues that you run into. Verifying that a pay stub generating website is professional is necessary to avoid creating inaccurate pay stubs that can land you or your company in legal trouble.

Don’t: Keep Pay Stubs On Hand Too Long

The Canadian Revenue Agency (CRA), in most cases, can only go back four years to audit your taxes, so be sure to keep your pay stubs on hand for at least that long. It is best to store pay stubs in a locked cabinet along with any other relevant information.

Do: Know How To Dispose Of Paystubs Safely

One of the trickiest parts about creating and distributing sensitive documents is knowing how to dispose of them properly. One of the simplest ways identity thieves get their hands on personal information is by rummaging through trash. Be sure to shred sensitive documents when you are done with them. Better yet, you could opt to go paperless altogether and email pay stubs instead. Remind your employees to ensure they use strong passwords that change routinely to keep their personal information safe.

Don’t: Use Them Just Once

Keep in mind that you will most likely need pay stubs for various things throughout the year, including ensuring the accuracy of your company’s T4s during tax season. Pay stubs also help your employees and contractors apply for car loans and rent applications. Having a pay stub offers peace of mind and helps track income easily.

Need Pay Stubs?

Are you still searching for the easiest way to generate modern and digital pay stubs? StubGen offers a seamless, user-friendly pay stub generator that saves you time and handles all the calculations for you. Try it out today!