Pay stub errors aren't just embarrassing—they can trigger costly penalties, employee disputes, and compliance issues. Here are the five most dangerous mistakes businesses make:
1. Incorrect Tax Calculations Using outdated tax rates or miscalculating withholdings can result in IRS penalties. Always verify current federal and state tax percentages before generating pay stubs.
2. Missing Employee Information Incomplete names, addresses, or Social Security numbers make pay stubs invalid for employee needs like loan applications. Double-check all personal details.
3. Wrong Pay Period Dates Mismatched dates create confusion and compliance issues. Ensure pay period start/end dates align with your actual payroll schedule.
4. Omitting Year-to-Date Totals YTD figures are legally required in most states. Missing totals can invalidate pay stubs for official purposes.
5. Inconsistent Formatting Varying layouts between pay periods appear unprofessional and raise legitimacy questions.
Solution: Use a reliable online pay stub generator that automatically calculates taxes, maintains consistent formatting, and includes all required fields—protecting your business from costly errors.
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