5/8/11

How to Make an ADP Pay Stub

Pay stubs are used to document an employee's year-to-date earnings and help report accurately to taxing authorities. As an employer, you must supply your employees with a pay stub.



ADP (Automated Data Processing) is a large payroll provider. A pay stub can be generated using ADP, Paychex, Quickbooks or even on your own through a common data processor like Excel. The larger your payroll needs are, the more inclined you may be to use a payroll provider. If payroll is only needed for a few employees, you may choose to save money and produce payroll yourself.
    • 1

      Multiply the employee's hours by his rate of pay. This is the gross earnings amount.

      List the hours, rate of pay and gross earnings amount at the top of the pay stub.

    • 2

      Multiply the gross amount by 6.2 percent. This is the Social Security deduction.

      Multiply the gross amount by 1.45 percent. This is the Medicare deduction.

    • 3

      Determine the amount of income withholding necessary by using the IRS and State tables. You will need the employee's exemption status and gross income for this step. You can locate the withholding tables online via the IRS website and State Dept of Revenue sites.

    • 4

      Deduct all the above figures from the gross income by listing them as subtractions beneath the gross on the pay stub. The new figure represents net income, the amount you pay your employee.

  • No comments: