Q:

How do you use a pay statement template to make your own?

A:

Quick Answer

When using a pay statement template to create your own, take a look at each section of the pay statement, such as the income earned for that specific pay period, deductions taken from the pay and a "Year To Date" section with totals for all sections in the current year. If utilizing a spreadsheet software program, insert any necessary formulas to calculate the amounts of pay and deductions automatically.

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Full Answer

Find the required tax rates, disability, Social Security and Medicare deductions as dictated by the federal government and your state. Tax deductions are based on tables and the marriage status and number of deductions the employee indicated on his W4. This amount changes any time the income for the pay period changes. Depending on the employee or the health coverage policy at your company, find the amount deducted for insurance. Some of these numbers stay the same for each pay period, regardless of how much the employee earned.

When creating the actual statement, use a spreadsheet or word processing software and create at least three sections on the page layout. The first section contains the amount the employee earned for the pay period, including the salary amount or hourly rate, the number of regular hours work, any overtime hours earned, and the total of everything. The second section lists all possible deduction and the amounts taken for each. The final section is a year to date section that adds up the total income earned and the total of each kind of deduction from January to December of the current year.

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