Self-employed people usually don’t get pay stubs. But they still need to provide proof of income in many situations just like everyone else.
Thankfully, pay stubs for self-employed people are easy to come by thanks to modern solutions.
We’ll review in this article how to effortlessly get one as a self-employed worker. Read on!
Knowing how to make a pay stub while self-employed will help you file your taxes and manage your finances more easily.
You can make pay stubs using a program either installed on your computer or online. All you need is a program to make a spreadsheet.
However, before making a pay stub, you’ll have to figure out your income. If you make a spreadsheet, add three columns for gross income, deductions, and net pay.
Simply put, gross income is how much money you’ve made during each pay period. To figure out your gross income, you can divide the money you’ve made in a year by the number of times you got paid.
You can easily monitor your income by setting up a separate bank account to receive all your income.
Deductions are money that is automatically taken from your gross income. The most common deductions are taxes and Social Security.
As a self-employed worker, you have to calculate these numbers yourself. Consult the IRS Employer’s Tax Guide to find out how much you should save for taxes. Make sure to into your specific state’s laws as regulations can vary.
The deducted amount may differ depending on your personal situation, such as being married or not.
Once the deductions are made, the resulting number is your net income. It is the amount of money that goes into your pocket for your hard work.
As mentioned, it is possible to use spreadsheet software to make your own pay stubs. However, not everyone is computer savvy or has the time to figure out how to do it properly.
Fortunately, you can produce pay stub in less than 5 minutes using online solutions. Paystub makers make your life a lot easier by offering various templates for you to fill.
All you need to do is fill out the appropriate template with your information and voila! You’ll get a high quality, professional-looking pay stub with all the important information included.
Of course, you can use any pay stub you make using online paystub makers as an official proof of income.
When you’re self-employed and not very good with computers, making pay stubs may seem daunting. And yet, they are convenient in so many situations such as rental or loan applications that you need to find a way to get pay stubs anyway.
To make one yourself, you’ll need to figure out your gross income and any deductions you owe. It’ll give you your net income.
To bypass the hassle of using a program, you can use online paystub makers to make your paystubs for self-employed workers within a few minutes.
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