Do you know what Paystub Maker is??

Well, it’s a combo package offering all in one stub making facility which you can bring in work not only to create pay stubs for employees but also to contractors using our very own and interface friendly free paycheck stub generator online tool. Well, let’s look into the two types of paycheck stubs and understand how they are different from each other and how we can bring both into use.

Using Paystub Maker

A tool that is commonly used by small and large companies is Paystub maker but you will only be benefited from it if you know how to use it well.

If you are an independent worker or a freelancer and self-employed person, you can make most out of the paystub maker. There is a recognizable difference between an employee payment and a contractor payment. Undoubtedly you would need to understand how you can utilize paystubs for both for maintaining easy financial records. Paying an employee and contractor isn't equivalent. In spite of the fact that the tool needed is same and stub creation process is simple as well, you can make a contrast in minutes.

Create Pay Stubs & Calculate Wages Easily

Classifying the Workers

Classifying your workforce from the purposes of state labor law and federal labor law makes it much easier to generate paystubs online and your firm might have to encounter enforcement action if you do not classify employees and independent contractors as per the UN department of Labor. Make sure you are clear about the category in which the worker falls before you start using check stub maker in order to spare yourself from the cracking of DOL and other ruling authorities. The actual goal behind this is to channelize the paystubs and make it transparent how much payment each of the worker deserves.

You may face a complex situation in classifying where to put worker in an employee category or a contractor category but in such situation 20-factor test can be of a great help for IRS. The main components of this test include time spent by an employee, work done by and employee and the way he produces and generates results. An employee has a freedom to work whereas an independent contractor is having limitations because of law. A proper legal classification of the workforce must be done.

Paystubs for Independent Contractors

Deductions and taxes are applicable on employees but not on contractors and that’s the main difference. This difference is because the contractors have following roles and duties to perform:

• Self-work Schedules setting

• Self-employment taxes

• Equipment supply and setting

• Self-retirement and health benefits Management

Above mentioned are the basic roles which contractors are liable to perform and your only responsibility is to accommodate them with paycheck stubs and they can further use it according to their needs and requirements.

So, what are you waiting for?? If you haven’t already been using our paystub maker for creating paystubs, then do it now!!