Self-employed individuals rule the United States. In 2015, there were an estimated 15 million individuals in the United States who were self-employed. However, self-employed individuals rarely receive paystubs that could be essential for qualifying for homes and loans.
Are you wondering how to make a pay stub for self-employed individual status?
No matter the specific reason, being able to have a pay stub is invaluable but can be hard when you’re self-employed. Today, we’ll learn how to create a pay stub and prove your income as a self-employed individual.
Self-Employment is No Longer Rare
Despite the 15 million self-employed individuals in 2015, 2019 saw even greater growth. 44 million individuals identified as self-employed during at least part of 2019 in the United States.
This number does include individuals who may have been self-employed part-time or for only part of the year. However, the growing prevalence of self-employment also increases the amount of income being made through side gigs.
No matter your specific freelance or self-employment gig, creating a paystub can help you qualify for life events as well as stay more organized come tax season.
How to Make a Pay Stub for Self-Employed Individuals
The simplest and fastest way to create a paystub is to use a free spreadsheet program on your computer. Yes, it’s that easy!
Traditional employers are required to keep specific records on employees, but not necessarily provide paystubs. Therefore, there is no penalty for creating your own paystub as long as the information provided is accurate.
Using a specific paycheck stubs creator website is a more efficient and streamlined option. No matter which route you’ll take, your paycheck stub will have to have specific information on it.
What are the most common inclusions? Most paycheck stubs identify the employee by name as well as by employee number if relevant.
An hourly wage is identified, as well as the number of hours worked over a specific date range. Gross earnings for that range are also included.
Deductions are also listed. Finally, a net income amount is also included. Include all of these on your paycheck stub and you are ready to go.
Benefits of Paycheck Stubs + Payroll over 1099 Forms
When conducting consulting or freelance work, you may receive 1099 forms from clients. These are also often used come tax season to prove income and help identify how much you owe in taxes.
In many cases, these contracts can also be used as proof of income. By presenting a bank or leasing office with long-term or consistent contracts, you can prove that you will be expecting regular income.
However, being able to provide paycheck stubs can still be more convenient and powerful as an option. Paycheck stubs are still more widely used and accepted as proof of income documents.
Self-Employed Pay Stubs Creation
We no longer have to worry about how to make a pay stub for self-employed individuals.
Self-employed pay stubs are easy to create and have a wide variety of uses. Are you looking to qualify for a new apartment or credit card? Having a pay stub on-hand can fast-track the approval process.
Ready to learn more about being self-employed successfully? Read more on our blog today.