In 2020 you decided to dive headfirst into self-employment! Congrats on getting your feet wet for the first time. You’ve made some income, and are feeling pretty great.
But as tax season slowly approaches, you are probably wondering, how do I provide proof of income without a pay stub?
Self-employed people usually don’t receive a paycheck and, therefore, no pay stub. However, there are ways to generate a self-employment pay stub on your own, and it’s way simpler than you may think.
What’s a Pay Stub & When Are They Needed?
A pay stub is a way to prove your income. It demonstrates that you are being paid regularly. We use them when we apply for a personal loan, car loan, credit card, mortgage, renting a home or apartment, and of course, filing taxes.
When you’re employed by a business, you receive a pay stub with each paycheck. If you receive direct deposit, they can be accessed online on whatever online payroll portal your employer uses.
On your pay stub, it details your gross wages (i.e. the amount of money you earned before deductions), tax deductions (from both the federal and state government, local taxes, Social Security, Medicare, etc.), other deductions such as health insurance, life insurance, 401k, and so on (if applicable), as well as your net pay (i.e. the amount of money you take away post deductions).
But, you’re self-employed and therefore, the process of obtaining a traditional pay stub isn’t as straightforward. Yet, it doesn’t mean that you cannot receive a pay stub. The process just differs—in fact, generating a self-employment pay stub is actually a simple procedure.
Make Your Own Self Employment Pay Stub Online
If you’re an employee of one, there is no need to use an online payroll service. Doing so is trivial—a waste of time and resources as you can make your own pay stubs online.
Yes, you read that correctly.
PayStubCreator gives individuals the means to generate their own pay stubs when self-employed. Simply insert how you are paid, how much you earn, your employment status, and state of residence, and there you have it—a self-generated pay stub that you can print out and use immediately. They function just as a traditional pay stub would when employed by a business, so no need to fret.
Pay Stubs for the Self-Employed
Pay stubs act as receipts. Therefore, even if you don’t need one for the above-mentioned circumstances, it is still in your best interest to create them on a regular basis for the purpose of having a backlog of receipts for tax season.
Creating a self-employment pay stub will also make the process of filing your taxes a lot easier as they can function as a reminder for you to set aside the right amount of money for when tax season arrives. You don’t want to be on the IRS’ bad side!
Curious for more insightful information concerning self-employment or running your small business? Check out our blog for more details. We are the go-to for all things home business!
The post Everything You Need to Know About a Self-Employment Pay Stub appeared first on Home Business Magazine.