How to Save Money Through Using Online Paystub 2024

How to Save Money Through Using Online Paystub 2024
Updated: December 18, 2023
7 min read
Updated: December 18, 2023
6 min read

Manually managing the payrolls of each employee on the spreadsheet is a tedious, time-consuming, and boring process. Typically, the HR team has to go through multiple data files to generate the employees' pay stubs.

Fortunately, businesses are now learning how to save money through online paystub generators that have made life easy for businesses of all sizes. Online paystub generators offer various pay stub templates. Each pay stub template has the space to add different types of information. However, the main components necessary for a payroll remain the same in all templates.

You must use the best pay stub generator based on the requirements and preferences of your business.

Pay Stub for Small Business

Save Money Through Using Online Paystub

For anyone wondering what is pay stub, it is a piece of paper or a paperless document that serves as proof of a paycheck for the employee. Also, the pay stub contains all the necessary information, including, the employee’s personal information, pay period, salary information (net, gross, and total), number of hours worked, consumer credit report, and tax deductions.

Indeed, as a small or medium-sized business owner, saving money without compromising quality is your top priority. Therefore, many small business owners avoid using the services of a premium online pay stub generator company and prefer to do the payroll themselves.

Sometimes, small business owners have to pay a fine for paying or filing incorrect taxes. The main reason behind errors in the tax filing system is using manual methods to fill out the tax information. An online pay stub generator can be a breath of fresh air for small business owners. Also, you can use paperless online pay stub generators to keep your company’s tax data safe, eliminating the probability of losing the information.

Why Small Businesses Should Use an Online Pay Stub

A pay stub is an essential document for both the employee and the employer. And there are numerous benefits to online payroll stub for small businesses.

  • Small businesses can also save money using payroll software. At first, using a payroll generator seems expensive and an extra expense. However, with time, you will observe that investing in an online pay stub generator has saved you money. You can generate individual pay stubs without making any mistakes, thus saving money you may lose in fines.
  • Online pay stub generator makes auditing and tax filing quick and hassle-free for small businesses.
  • Online pay stubs improve your business image, making you look more professional, high-end, and prestigious. And having a reputable brand image can be highly profitable for any small business. Errors in tax filing and subsequent fines can also tarnish your brand’s image.
  • Online pay stubs also make financial management easy for employees. Having all the necessary financial information in the same place makes it easy to apply for loans, bank statements, emergency funds, credit card facilities, and medical insurance.

How to Save Money With an Online Pay Stub Generator

A pay stub generator is an easy-to-use, accessible, and professional method of generating pay stubs. As a business owner, reducing your product cost and enhancing the profit margin are two major goals. And the online pay stub generators help you cut the cost of payroll.

The use of a pay stub generator helps in saving money on payroll; reducing your overall financial management. Here is how to save money by using an online paystub.

Time is Money

Many business owners use paper paychecks to give payments to their employees. However, in today’s world of massive technological advancement, using the old paper check method seems inefficient and time-consuming.

Similarly, many businesses use spreadsheets to enter personal and financial data and print out pay stubs. These methods of pay stub generation are time-consuming, and it is a well-known fact that time is money. By saving time, you will be saving money.

Protection from Government Sanctions

All businesses and employees pay federal income taxes, social security payroll taxes, union dues, and other taxes. Miscalculations while filing any of these government taxes can cost you a lot of money. Hence, you can save money by using an online pay stub generator that automatically calculates all required taxes based on your income.

Saves You From Outsourcing the Talent

Using an online pay stub generator helps you cut the cost of hiring an external accountant to manage your business payroll. You may find an extensive range of HR services offered by several companies. However, these services come at a hefty cost. And any business trying to improve its financial growth always avoids spending money if it's not necessary. Hence, you can take advantage of these online pay stub generators and do the payroll process.

Protection of Unwanted Errors

Manual data entry can cause numerical errors. Correcting these errors can take time, which can frustrate the employees, and cause them to leave. Then you will need to hire new employees, which will cost you time and money. The online pay stub generator can save you all these costs by doing correct calculations in a single go.

No Prior Training Required

An online pay stub generator is an easy-to-use tool. The pay stub templates already contain all the required fields relevant to the employee’s pay and your company’s information. Your HR team can generate these stubs without hassle. Your only task is to fill in the employee’s personal and salary information on the pay stub.

Other Benefits of Using Online Pay Stub

In addition to the benefits of online pay stubs mentioned above, the following are other benefits of using online pay stubs.

  • Data Security: Online pay stubs help protect your company’s data. Manually generating pay stubs requires you to save a pile of documents. However, using online pay stubs all your data remains guarded online.
  • Punctuality: Keeping track of time when paying direct pay stubs or paying salary by hand is challenging. However, you can send payments to your employees on time by choosing a premium online pay stub generator service.
  • Reliability: You can send online payments using online pay stubs regardless of holidays, bad weather, or similar unexpected incidents. This punctuality in the payments makes your brand reliable and your employees more faithful to the company.
  • Accessibility to Employees’ Data: Online payment processes using online pay stubs help you keep the employees’ data saved on a single platform. On the other hand, if you are using paper stubs, there are chances of losing this information.
  • Modern and Professional Image: Online pay stubs make your business look professional and reliable.
  • Monitoring of Employees' Performance: Online data storage also helps you keep track of the employee's performance for a given period.
  • Tracking Employees' Absentees Record: Online pay stubs also help track how many paid and unpaid leaves each employee has availed in the salary period.

Disadvantages of Using an Online Pay Stub

Online pay stubs are a useful and handy tool to efficiently deliver salaries to employees on time. However, it is essential to complete the whole process, starting from the generation of the pay stub template to the delivery to the employee, with vigilance. You will be entering and saving the employees’ data online. And once the data is finalized, there is no going back. Therefore, it is crucial to fill in the basic information correctly. Following are a few disadvantages of using online pay stubs.

Spam Filter

Generally, sending online pay stubs via email is a seamless, fast, and efficient process. However, sometimes, these emails get stuck in the spam folders. This situation can cause hassles for both employers and employees. Therefore, it is wise to guide your employees beforehand to check the spam folder.

Loss of Internet Connection

Online pay stub generation is dependent on a smooth and fast internet connection. If your internet connection keeps disconnecting, it will be impossible to fill in and send the pay stubs on time.

On the other hand, if you are using a spreadsheet to create pay stubs, you will not be dependent on internet availability. Hence, being reliant on an internet connection is one of the biggest disadvantages of using online pay stubs.

Forget Adding an Important Piece of Information

You may find an extensive range of online pay stub templates. Different pay stub templates contain different fields to enter the necessary information. However, the primary goal of all templates is the same. Possibly, you chose a specific pay stub template and started working on it. However, after a while, you may need to add another field that is not available in the chosen template. This mistake can cost you time, effort, and money.

Indeed, all these are minor and avoidable disadvantages of using online pay stubs, compared to their multiple benefits.

Using Online Pay Stub for Personal Use

The employees can use the online pay stub for various personal purposes. For instance, this pay stub is a great way to apply for an emergency fund, credit card, medical insurance, and bank statement.

Also, anyone can create their own pay stub using an online pay stub generator. Creating your pay stub is highly beneficial for self-employed people. You can use a premium online pay stub generator to do that. First, choose the template, enter the basic information, and then download the online pay stub.

Final Thoughts on Using Online Pay Stub for Business

There is no denying the fact that time is of utmost importance for the growth of any business. Both the manual entry of pay stubs on paper and the generation of computerized pay stubs using spreadsheets are tiring processes.

In addition to giving an insane amount of time and energy to the whole process, the HR or financial management team has to be immensely conscious about entering the correct information. Therefore, if you are using the old paper paycheck payroll system, you need to switch to the technologically advanced system to save time and money and improve the task’s efficiency.

The online pay stub is an efficient, hassle-free, and convenient way to pay salaries to your employees. These pay stubs keep your data safe and secure, automatically calculate federal taxes, and send payments on time.

Online pay stub generation is an easy way to create error-free pay stubs in a short time. These documents improve your financial efficiency and the company's image.

FAQS

  • How much does an online pay stub cost?

The pricing of online pay stubs varies from template to template based on your required services. Typically, the average cost of a single online pay stub is around $7. The cost may increase based on the template you choose.

  • How do you use an online pay stub generator?

The pay stub generator is an easy-to-use tool that anyone with basic accounting information can handle. Firstly, you must choose a reliable and reputable website offering a pay stub generator. Then, choose the best pay stub template that has all the required information you need to add.

Next, fill in the basic and financial information of the employees, and then download it. You can send this pay stub directly to the employees via email. An online pay stub is an easier payment method compared to a direct deposit.

  • Can you automate making pay stubs online?

Yes, you can automate the pay stub document creation online. You only need to add the basic information, and the online pay stub will automatically calculate the tax percentage based on FICA.

Kristen Larson
Payroll Specialist

Kristen Larson is a payroll specialist with over 10 years of experience in the field. She received her Bachelor's degree in Business Administration from the University of Minnesota. Kristen has dedicated her career to helping organizations effectively manage their payroll processes with Real Check Stubs.

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