Paystub maker is an all-in-one stub making facility. As you already know, you can create pay stubs for employees as well as contractors using our free paycheck stub generator tool online. It’s the time to know the basic difference between the two types of paycheck stubs and how you can manage to create both.
Here you go!
Using Paystub Maker
Paystub Maker is used by small and large firms but you should know how to utilize it well.
For self-employed persons and for those who work independently, it is required to know how to make most of the pay stub maker. There is a fine line of difference between paying an employee/worker and a contractor. No doubt you have to make paystubs for both; you are maintaining financial records easily. But, paying an employee and contractor is not the same. Though the tool is one and the same and stub creation process is simple too, you can create a difference in minutes.
Classifying the Workers
Having a properly classified workforce eases your job of making paystubs online. You should classify your workforce from the purposes of state labor law and federal labor law.
As noted by UN Department of Labor, those firms who are not classifying their employees and independent contractors may face enforcement action. In order to save yourself from the cracking down of DOL and other authorities, just make sure that before you have a seat to use check stub maker, you are clear in your mind about the category that particular person falls into. The main aim is to channelize pay stubs and make it crystal clear that employees and independent contractors should be paid as deserved.
At times, the situation may get complex and it becomes difficult to identify whether the worker should be referred to as an employee or a contractor. To your surprise, IRS uses a 20-factor test in assessing work classification cases. These factors are centered on the time, work and ways of production. An employee gets independence to complete a job while an independent contractor is in the eyes of the law. In short, you should select a proper legal classification of your workforce.
Paystubs for Independent Contractors
The main difference between the paystubs of the two is the deductions and taxes which are subtracted from employees but not from contractors. This is because contractors have following responsibilities:
- Setting Self-work Schedules
- Paying Self-employment taxes
- Supplying own equipment
- Handling Self-retirement and health benefits.
These are the major responsibilities they are liable for. However, your responsibility is to provide them with paycheck stubs and then they can do whatever further procedure they want to use it for.
If you have not created paystubs yet with our paystub maker, do it now!
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