A pay stub for contract labor is a form that accompanies a paycheck describing how the laborer was paid. Pay stubs are required if you are treating the contract laborer as an employee, but not if the laborer is an independent contractor. In that case, the contractor will bill you for his labor and you will pay it. If the laborer is an employee, you give him a pay stub with his paycheck to explain how the net pay was calculated.
Identify the employer and employee. List the contact information for the company so the laborer can contact you with any questions he may have about his pay. Also list his name and contact information.
List the jobs and rates of pay that the contract laborer performed. For example, if you hired her to complete a specific task for a specific amount of money, write the name of the job and the amount earned. If you were paying her by the hour, list the amount of hours worked and multiply it by the rate of pay.
List any deductions that are being taken from the contract laborer's pay. For example, if you are withholding taxes from him, list the type of tax and the amount. Compute the total amount of deductions taken and list it next to a title of "Total Deductions."
Subtract the total deductions from the earnings to determine the net pay. This is the amount that you write a paycheck for and it is to be attached to the pay stub.
Tips & Warnings
- Staffing companies specialize in contract labor. This relieves the employer from the burden of issuing a pay stub and paycheck. If you use a staffing company, it will supply you with the labor and bill you for it. It then becomes the staffing company's responsibility to issue the laborer a pay stub.
- Some states have labor laws that require pay stubs to be issued within a certain amount of time. For example, in Massachusetts pay stubs must be issued within six days of the end of the pay period. Contact your local department of labor to determine whether your state has any such requirements.
How to Create and Print Out Pay Stubs
Most accounting and payroll software programs make it easy to create and print out check stubs to give to employees along with...
How to File Taxes for Contract Labor
Contract laborers are independent contractors who are responsible for paying their taxes to the government on a quarterly basis. Contract laborers fill...
How to Pay Contract Labor
Independent contractors provide services for various jobs under minimal supervision and generally provide their own tools and supplies to get the job...
How to Pay Independent Contractors on QuickBooks
Although independent contractors may provide services for your business similar to an employee, you must not classify or pay your contractor as...
Forms for Contract Labor
The Internal Revenue Service defines contract labor according to how much control you have over a worker’s labor, not on how on...
How to File Contract Labor as Income on Taxes
Filing contract labor as income on taxes means using a 1099 and placing the amount in the "Other Income" category on the...