Pay stubs are used to document an employee's earnings and help report accurately to taxing authorities. As an employer, you must supply your employees with a pay stub for every paycheck they receive.
When you run a small business, doing payroll can be time-consuming. Using a service to help you run payroll can make the process more efficient and less painful. Automatic Data Processing Inc. (ADP) is one cloud-based platform you can use to help keep track of payroll.
ADP Payroll Service
ADP has a payroll service specifically geared toward small-business owners with up to 49 employees. Through ADPs payroll service, you can input your weekly payroll electronically and ADP will:
- Calculate employee earnings for that pay period and year-to-date.
- Calculate payroll taxes and pay them for you.
- Complete direct deposit for your employees.
- Deliver the printed paychecks to you.
- Provide you with a variety of quarterly and annual payroll reports.
ADP’s small business payroll service also provides Human Resources (HR) support to help ensure you are in compliance with state and federal regulations.
ADP offers several levels of payroll services to small businesses. Depending on the ADP service you enroll in, you can also pay your employees using a reloadable prepaid debit card, manage any state unemployment insurance claims and have increased HR support.
Information Included on a Pay Stub
Every paycheck that is delivered to an employee needs to have a pay stub. If an employee’s paycheck is automatically deposited to their account via direct deposit, they still need to receive a pay stub for tax purposes.
The Internal Revenue Service (IRS) requires that employers withhold income and employment taxes on behalf of their full-time, salaried employees. If an employee is a contract or freelance employee, an employer does not have to withhold taxes and the employee is responsible for paying them directly to the IRS.
To make the process of wage payment and withholding more transparent, pay stubs must include the following information:
- How many hours an employee worked and at what rate.
- Total gross earnings for that pay period, as well as a cumulative total for the year.
- Deductions for federal tax, state tax, Social Security, state disability and any other deductions such as health insurance.
- Total net earnings for that pay period, as well as a cumulative total for the year.
Making an ADP Pay Stub
The process of making a pay stub through ADP is relatively simple. Instead of manually doing calculations, you input information into the ADP system and it completes the calculations.
To make an ADP pay stub, you must have an existing ADP account that is set up with all your company and employee information. During each payroll period, you enter your employee’s timesheet information into the ADP system to show how many hours the employee worked at their established rate.
Once you do that for all your employees, you can process payroll. ADP will automatically do all the calculations, figuring out earnings and deductions for that pay period.
If you print your own paychecks through ADP, a pay stub prints automatically with each check. If you have paychecks printed by ADP and delivered to you, the pay stub will be included.
- Remember to deposit the amounts withheld from pay checks to the IRS and State taxing authorities.
Leslie Bloom has worked in upper-level management positions in both publishing and the mental health field. In addition to years of business and management experience, she has more than 20 years of experience writing for a variety of online and print publications, including Metro Magazine. She holds degrees in both journalism and law.