If you run a travel-based business with employees, you probably need to create a paystub when you pay them. But what is a pay stub? Learn here in this article.
Some of the most successful entrepreneurs have built their fortunes off travel-based businesses. You can launch this type of enterprise right from the comforts of your couch.
The tricky part is the administrative duties. If you decide to bring on employees, you need to know how to pay them. So, what is a pay stub?
If you plan on operating your business with integrity, nix the idea of paying people under the table. Having a proper payroll system keeps your business documented for tax purposes.
It also helps you track and record financial payouts to employees.
If you’re thinking of running a travel-based business with employees, consider this. Find out here what is a pay stub and why you need to create them.
What Is a Paystub?
Traditionally called a paycheck, a pay stub is a paper document that outlines the way you pay employees. This happens within designated pay periods.
Pay periods run from one to two weeks—a month if you work for certain sectors of government. The paystub details an employee’s earnings and what deductions get taken out.
Most stubs include:
- Federal and State Tax Withholdings
- Employee Info: name, address, and SSN
- Pay Period Dates
- Employee Pay Rate
- Employer Information
- Insurance and Contributions—IRAs, pensions, health, and life insurance
A pay stub is like an invoice between you and your employees. The major exception is you’re not billing them, you’re detailing how you pay them. Learn more here.
Why You Might Need to Create Pay Stubs for Your Travel Business
Every state has different guidelines when it comes to recording employee pay. However, the Fair Labor Standards Act doesn’t mandate the distribution of pay stubs.
Employers aren’t required to issue employees check stubs. But, they must track and record hours worked and wages paid. This act also doesn’t forbid employees from requesting this information as well.
Your employees have the right to access to their wage information upon request. So why not have them on hand.
Generating pay stubs for employees reduces human error and helps resolve pay discrepancies. Most payroll software systems have preset data entry points. Employers enter pertinent information once, decreasing the odds of future data entry mistakes.
Also, employees who work additional hours often have questions about their pay. They like to know they’re getting paid the hours they’ve worked. Having accurate pay stubs on hand saves you correspondence time.
And, they keep down any suspicions of pay variances.
All American-based businesses must comply with federal business tax regulations. Pay stubs help you document important tax information.
Aside from pay accuracy, pay stubs help you manage company finances better. They help record incoming and outgoing funds, which makes monthly accounting easy to manage.
Also, pay stubs add a touch of professionalism to a business that’s more remote than corporate.
Generate Pay Stubs
What is a pay stub? It’s a tool to bring your travel business into modern accounting practices.
Consider the benefits for both you and your employees. Start generating pay stubs today. Need more inspiration about travel jobs? Take a look at our travel opportunities and enjoy the world while you work.