How to Make Pay Stubs for a Handyman?

Writing pay stubs is an obligatory part of managing payroll. Whether you’re a self-employed contractor or you own a small handyman service, providing employee pay stubs contributes to transparency, legality, and professionalism in your business’s financial transactions.

 

In this guide, you’ll learn how to make pay stubs for handyman, whether you’re paying yourself or your employees, or you’re running a small business.

 

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What is a pay stub?

 

A paycheck stub is a document that breaks down an employee’s earnings and deductions for a specific pay period. For a handyperson, this is a way for them to show what they earn per job, which can be very useful for tax purposes, getting loan approval, or just having a professional paper trail of their expenses.

 

A pay stub format includes the following:

 

• Employee Name
• Pay Period Dates
• Gross Income
• Deductions (e.g., taxes, insurance, retirement)
• Net Pay
• Employer Information
• Pay Rate (hourly or salary)

 

Now that you’ve seen what information a pay stub contains, learn how to make one with these steps.

 

Step 1: Gather Information

 

Before you can generate a pay stub for a handyman, you will need the following information:

 

• Characteristics of the Handyman: Name, address, and TIN. For freelancers and independent contractors, that could also be the name of their business.
• Employer Information: If you are an employer, you will also need to provide your business name, address, and Employer Identification Number (EIN). Independent contractors may not be subject to this unless you’re hiring subs.
• Pay details: One detail is the pay period, which can be weekly, biweekly, or monthly; the hourly rate or the fixed fee; and the number of hours worked or the fixed amount for the pay period.
• Deductions: Find out what deductions are available, including:
  • Federal and state taxes
  • Health insurance premiums
  • Retirement or pension contributions
  • Social Security, Medicare (for employees)

 

There are many of these deductions that do not apply if the handyman is an independent contractor. Still, you may want to include these anyway in case you have voluntary deductions, like insurance or retirement savings.

 

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Step 2: Calculate Gross Income

 

Gross income is the amount of money the handyman makes before anything is taken out. You’ll calculate gross income differently based on whether the handyman is employed by the hour or paid based on a flat rate.

 

• Hourly: Hours worked multiplied by the hourly rate.
  • Example: If a handyman worked 40 hours at $25 an hour, the gross earnings would be 40 x 25 = $1000.

 

• Flat Rate: Select if you hired the handyman for a project or service with a fixed price, and enter the agreed-upon total.
  • Example: If the plumber completed a job and received $1200, the gross income is $1200.

 

Step 3: Subtract Deductions

 

Once you figure out how much the handyman makes as gross income, you’ll need to deduct taxes and insurance to find out how much net pay (the amount the handyman has as a paycheck) he gets. For the handyman, such deductions may be:

 

• Taxes: Federal and state taxes as if the handyman were in a 28% tax bracket. Independent contractors pay their own taxes, while taxes for employees are taken out by the employer.
• Social Security and Medicare: If the handyman is an employee. Independent contractors must pay the self-employment tax, which includes Social Security and Medicare taxes for both the employer and employee.
• Insurance and Benefits: If the handyman has insurance taken out or has employee payroll deductions for a retirement account, add these to your list.

 

Follow this rule, and no errors will be made in terms of tax rates and benefit programs.

 

Step 4: Calculate Net Pay

 

After all deductions are taken out of the gross income number, what’s left is the net pay. This is what the handyman is literally going to take home. If, for instance, income was $1000 and deductions (including tax and insurance) were $300, then the pay after deductions would be $700.

 

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Step 5: Set Up the Pay Stub Format and Generate it

 

The next step is printing and giving out your pay stub. If you’re producing a pay stub by hand, you can set up a basic document using Microsoft Word or Excel. You should include:

 

• Office or Employer Information: Fill out your office name, address, and EIN.
• Handyman Information: Name, address, and tax ID (if any).
• Pay Period Dates: The length of time the handyman is being paid for (for example, July 1 to July 15).
• Line Item: Show the hours, the rate (if applicable), and the total due, and display the deduction and net sum.
• Employer Contributions (if applicable): If you’re paying things like insurance or retirement funds on behalf of the handyman, make sure they’re in there too.

 

Although you can generate pay stubs by hand, doing so can be time-consuming and leaves the door open to mistakes. Fortunately, there are services that can make the process smoother.

 

Step 6: Use Pay Stub Creation Software

 

If you don’t want to spend your time manually making a pay stub, the quickest and easiest method is to use pay stub-making software. You can use online pay stub makers and create accurate and professional-looking pay stubs in minutes.

 

One such tool is StubCreator. StubCreator is an online pay stub generator that creates instant pay stubs for free. No matter whether you are an independent contractor or have a service agency, you can use the pay stub creator to generate payslips in three steps. The service can automatically figure out taxes and deductions based on what you enter, which can help cut down on mistakes and save time.

 

With StubCreator, you can:

 

• Design pay statements for workers, freelancers, and contractors.
• Select from various pay frequency choices (weekly, biweekly, or monthly).
• Create pay stubs and calculate tax automatically.
• Instant pay stub download and printout choice.
• Maintain records in a professional and organized manner.

 

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Reasons Why StubCreator is for Handymen and Small Businesses

 

As a handyman owner or a small business owner, managing payroll and even making pay stubs can be overwhelming given the fact you’re probably already juggling projects, marketing, and other business commitments. With StubCreator, you won’t need accounting experience to generate professional pay stubs. Whether you have staff that you need to pay or are paying yourself, this is a cost-effective, easy-to-use solution that takes manual calculation out of the equation.

 

Then, for freelancers and contractors, many of whom are self-employed, StubCreator can ensure you have proof of income, which would be helpful in relation to applying for loans or mortgages and even on a matter of tax.

 

Conclusion

 

Generating pay stubs is an essential task for every business, and handymen are no exception, so it is vital to keep accurate financial records. If you’re a sole proprietor or if you’re running a tiny handyman service with staffers, getting the process right when it comes to generating pay stubs will help you stay legal and look professional.

 

With the help of resources like StubCreator, you can create pay stubs hassle-free and concentrate on something that really matters: expanding your handyman business. No matter who you are, a contractor, a small business owner, or a receptionist, a check stub can be used when you want to prove your employment status.

 

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Tags: Handyman, Handyman pay stubs, Handyman paycheck