Pay stubs are a necessary part of recording all the employee wages and salaries involved in your business operations and are a core part of the accounting specialist or department. However, they can also be very complex and hard to keep track of, especially in larger businesses.
Even for a small business, having a pay stub for every single employee (and making new ones each month) can be very time-consuming. The risk of making any mistakes or accidentally inputting false information is also a serious concern, one that you can’t really work around directly.
However, there are a few ways to simplify your pay stubs and the process that you are using to create them. But how can you make things easier without making the pay stubs useless as a record? Sometimes, small changes are all you need to make the process much, much simpler.
Keep All Data Together
One of the more time-consuming parts of creating pay stubs is filling out each individual stub with a specific employee’s data. Not only can it take a while to double-check things, but that data might be spread across completely different spreadsheets on different servers or across varying file formats.
On paper, it might not sound hard to take a name from a Word document and some numbers from a spreadsheet, but doing that for each employee wastes a lot of time for no benefit. Depending on your security methods, certain computers may not even be able to access particular files.
Instead, you want to centralize all of your records. Pull information from databases and create copies of it in more centralized locations, even if that means automatically drawing it from the originals. Create single spreadsheets that you can rely on to fill the entire pay stub.
Even if you still have accounting staff inputting this information manually, it becomes much easier by keeping it all in one place and allows you to back it all up without needing to ram different documents into a secure folder. It also makes it much easier to access them when needed.
Do your best to synchronize different systems and sources of data, whether that is finance spreadsheets or HR records. Ideally, you want one change with a database to update all of the others as well, keeping employee information and their overall income consistent across all files.
This can be tough to set up at first, but once it is planned out and implemented, it makes everything a lot easier. If you are careful, you can even use it to automatically generate payroll templates for each employee by simply pulling their current data from a central system.
By keeping everything consistent, it becomes a lot easier to make sure that every set of pay stubs is accurate and based on the most up-to-date information possible. This avoids issues like employees who work overtime shortly before payday not getting recognition for it.
As a side note, a centralized system like this is also much safer and less vulnerable to damage or attack as long as you protect it. With enough security, you can keep employee records safe, something that matters a lot in larger companies that are more prone to virus attacks.
This might help with tax, too, since tax is often the same for numerous different employees. Having a central reference for current tax rates might help with calculations and can also make it a lot easier to double-check calculations or pension contributions ahead of time.
Generate Payrolls Automatically
You can try to generate pay stubs with online generators, something that works incredibly well in larger businesses. With so many employees to get through, it is not always ideal for your accounting department to try and manually set up each stub before the payday deadline.
Instead, an online generator can return near-instant results, always using the same settings to offer maximum consistency and clarity. Because of this, generated pay stubs are both practical for employees and very effective as long-term records of how much said employees have earned.
If your company has not started making pay stubs yet, then a generator is also a great starting point for building a larger-scale filing system. These stubs are auto-generated with all the information you input into them, meaning that they are ready to be used or filed away as soon as you get them back.
This does not stop your finance experts from altering the pay stubs if they have to, either. You can refine and tweak the exact generation method as much as you need to, eventually ending up with the perfect system for getting the pay stubs that you need in such large quantities.
For smaller businesses, a generator can be just as effective. Without such a high amount of employees to deal with, you can instead use it to quickly get pay stubs ready if you do not have any financial experts yet, and can quickly throw together records that you otherwise would not have.
Use Digital Pay Stubs
Digital documents are much easier to access and are a lot less of a logistical nightmare, meaning that they can be an efficient way of getting stubs out to employees quickly. The exact laws on how they have to work will vary from state to state, but they will never not be an option.
For example, if you are in some states, you will have the choice of converting over to using all-digital methods unless an employee specifically asks for a physical record. Other states require you to get consent from each employee first, keeping physical records for the ones who do not consent to digital options.
A few states even have the requirement that you need to provide a printing option for digital records, usually an in-office printer or some other method of giving them physical copies.
Be sure to look into your relevant local and state laws since they can completely change the way that digital pay stubs can integrate into your business. The more you know, the better you can ensure that you are doing everything legally and correctly.