Federal Unemployment Tax Act

Dec 28th, 2023

The Federal Unemployment Tax Act is a federal payroll tax that helps in funding the unemployment benefits. In this blog, we shall talk about FUTA, its most current taxes, and how much you need to pay for FUTA. If you want to create paystub you should visit eFormscreator.

What is FUTA Tax?

The Federal Unemployment Tax Act (FUTA) establishes a federal payroll tax for American businesses and organizations, which helps fund programs and benefits for unemployed citizens.

FUTA was created in 1939 as an answer to the events of the Great Depression and today assists similar, state-based programs that are often funded by the State Unemployment Tax Acts (SUTA).

Who pays FUTA Tax Rate?

As per the IRS, a business shall pay unemployment taxes if it meets the bracket of any of these three tests:

General Test: Businesses that have spent $1,500 or more in wages to any employee in any quarter of the year for at least some part of a day across any 20 different weeks of the year.

Household Employee Test: Businesses that spent $1,000 or more in cash to the household workers in any quarter of the year.

Farmworker Test: Businesses that spent $20,000 or more in cash to the farmworkers in any quarter of the year or at least some part of a day across any of the 20 different weeks of the year.

2024 FUTA Tax Rate

The 2024 futa tax rate is 6% of the first $7,000 from every employee’s annual wages. For example, if Employer XYZ pays one employee $15,000 annually and another $5,000 annually, it would pay a total of $720 in unemployment taxes as only one employee earns over $7,000 a year. Because the other employee earns only $5,000 annually, Employer XYZ will only pay 6.0% of that $5,000.

Employee Current FUTA Tax Rate  Total Unemployment Tax Owed
Employee A 0.06 x $7,000= $420
Employee B 0.0.6 x $5,000= $300 $420 + $300 = $720 

How To Pay FUTA Taxes?

Organizations with a Federal Employer Identification Number can make a FUTA tax payment in the form of an Electronic Transfer Fund (ETF) to the Department of Treasurey’s Electronic Federal Tax Payment System (EFTPS).

FUTA taxes are generally due one month after the end of a quarter. Still, if an organization only collected $500 in FUTA taxes for a quarter, it could wait until the following quarters to deposit the funds.

Quarter Quarter End Date Deposit Due Date
Q1 (Jan, Feb , March) March 31 April 30
Q2 (Apr, May, June) June 30 July 31
Q3(July, Aug, Sept) September 30 October 31
Q4(Oct, Nov, Dec) December 31 Janauary 31

How To Calculate Futa Tax Rate?

To calculate the FUTA tax rate on a worker’s annual wages:

Add up all of the taxable wages paid to an employee in a calendar year. For example, you pay your employee Roger $7000 in December 2022 and another $8,500 in January 2023. If you add these figures together for a total of $15,500.

If, during that same period, you paid employee Jack only $5,000 of wages subjected to the FUTA taxes, then your total is still $15,500. Multiply these amounts by 0.07. In this case, it would be $120.00.

Paying FUTA taxes to the IRS

Generally, employers must deposit their FUTA tax liability to the U.S. Treasury via the Electronic Federal Tax Payment System.

The business also needs to report FUTA by filing Form 9040 by the end of January 31st of the particular year as a part of its annual tax returns.


Filing and paying the FUTA rate is a simple process. As long as you have a basic understanding of how much you owe and when the payments are due. Failure to pay the FUTA rate can lead to significant penalties, including fines and criminal charges. If you are looking for a free paystub generator, eFormscreator is your perfect solution.

A Panoramic Guide To Your Earning Statement

Dec 27th, 2023

Most of the employee in America look forward towards the arrival of their earnings statements, which are commonly known as paystubs. But do you even know what is an earning statement, and how does it works?

In this blog, we will take you on a tour of pay stub, including how much you should be making, what taxes are taken out of your earnings and much more. If you want to create paystub, you should visit eFormscreator.

What is an Earning Statement?

An earning statement is a document outlining how much an employee has been paid over a specific pay period. This details gross earnings and then lists deductions taken out of your payments for taxes and other withholding purposes.

Earnings statement are referred to as a paystub. You can quickly generate paystub for your business via online paystub generators.

Earnings Statement documents a company’s profitability and shows how much money is lost. The earnings statements show earnings over time so that the interested parties might view how the firm is doing during a particular time period.

Earnings Statement V/S Balance Sheet

The earnings statement and balance sheet are two different financial reports. A balance sheet provides assets, liabilities, and equity at the same present revenue and costs over time.

In comparison to this, an earnings statement examines revenue and costs at a 12-month accounting period. This shows the company’s net profit and loss for that time period.

Format of an Earnings Statement

Earnings Statements can be categorized into two different types, namely Single-Step Earnings Statements and Multi-Step Earnings Statements. Both statements have the following components:

Sales: This is the total amount received via the sales of the firm service. It is the sum of all the revenue accounts.

Cost of Goods Sold: This is the total amount paid to purchase the goods sold within the specified time period.

Gross Profit: This is the amount of money which a company produces before operating expenses, calculated by deducting the costs of items sold from sales.

Operating Expenditures: Salary, Utilities and Advertising are some examples of the same.

Net Earnings: Whether the firm has made a profit or loss during the specified time frame, which is calculated by deducting the total expense from gross profit.

Recognizing Earnings Statement

Begin by double-checking the numbers if you have been entitled to examine an earning statement. The sole maths abilities required are addition and subtraction to make sure that the numbers are ideally computed.

What Information Can Be Found on an Earnings Statement?

There are various components to an earnings statement which can help determine how much an employee earns. Though some of the information won’t significantly impact how much money one makes, but other components tells vital information about your earnings.

Gross Earnings: The gross earnings will detail how much an employee has made before any deductions have been taken out. Gross Earnings include things such as commissions, hourly wages, and bonuses.

Taxes: Deductions on your paystub are vital because they detail how much of your earnings you bring home. For employees, it will list gross earnings, then numerate taxes and deductions taken out of payments for the specific pay period.

It is crucial to know how your taxes as an employee are deducted. Your annual income determines how much you owe in state, federal, and local taxes. Income taxes are deducted from the pay. The perfect amount withheld for federal income taxes will depend upon your earnings and how you file your earnings statement.

Time Off: Various earnings statements showcase time off and absence for the earnings period. This includes sick days, paid time off, and other abscene activities like jury duty.

Healthcare Contributions: Your earnings statements will also showcase how much of your earnings have been paid for helathcare. Employers must provide affordable healthcare under the Affordable Care Act so that it lists down if an employee has already had their insurance contributions subtracted from earnings.

Earnings Statement Analysis

The purpose of this typical format is to compute profit at every subhead of revenue and operating expenses, then account for mandatory taxes, interests, and other non-recurring events that arrive at net income relevant to common stock. Despite this calculation, including basic additions and subtraction, the sequence of the different elements in the statement and their connections can become duplicative and complex.


To sum up, earnings statements are vital for employees to know about. They provide detailed information about an employee’s earnings during a pay period. If you want to generate paystubs, you should visit eFormscreator.

For self-employed individuals, earnings statements play a more prominent and significant role because they build up your revenue. It tells you exactly how much money you have made and is the only way to determine whether or not your business was profitable in a specific period.

How To Cancel a Pending Transaction on Credit Card, Debit Card or Paypal?

Dec 22nd, 2023

If you are used to working with cashless transactions, then a pending transaction is not a new thing for you. Even though such a charge is not permanent and signifies a waiting transaction, it can be uncomfortable at times.

The reason is that the pending charges affect your available balance until the funds flow out. As a result, your chances of having them increase with more debit card purchases.

In this blog, we will highlight what is a pending transaction and how to cancel a pending transaction? Before we dive deep, if you want to create paystub, you should be visiting eFormscreator.

What is a Pending Transaction?

A Pending Transaction is any payment that has not been fully processed even though the customer has accepted the payment. Essentially, pending charges are familiar with cashless transactions like credit card payments.

When you make a payment with either your debit or credit card, the merchant charges your account. However, the issued charge might take a while to enable the complete transfer of funds to the recipient.

The reason is that the payment has to go through specific third-party processes-payment networks, within which your transaction becomes pending. As the pending charges clear up the moment, your card issuer successfully transfers the funds to the merchant for you.

Operation of a Pending Transaction

When you use a debit or credit card to make a transaction, the payment passes via various processes.

To start with, the point-of-sale (POS) system informs the merchant that your card is authentic. Your bank, credit union, or card issuer authorizes the purchaser.

However, the transaction do not become final until your banking institution transfers funds to the merchant on your behalf.

In the case of a pre-authorization, the merchant charges more than the actual amount to ensure that they will have access to those funds if your purchase surpasses the accurate amount of the transaction.

For example, you might pre-authorize at $50 at the petrol station and just pay $42 to fill up. Until the $42 is transferred from your account, the $50 charge will show as a pending transaction.

Credit Cards

When you use your credit cards to pay for something, no money is taken from your credit union account until you pay your payment at the end of the month. A pending credit card transaction only reduces your available credit amount.

Debit Cards

Debit card transactions immediately remove money from your account to cover the purchase costs. This means that a pending payment on your debit card reduces the available balance in your account for the duration of the transactions, which is not lengthy.


Paypal’s payment processing system is existing. This implies that if you paid using Paypal, the transaction might appear pending in your Paypal account before it appears on your credit card.

Reasons Which Can Delay An Exchange

Payments Outside of Business Hours: Due to the wide availability of online financial transactions, you might notice that you can make payments whenever you like. However, you will get to see that your trade stands out as pending for those payments which you make outside of the prevailing working hours.

Merchant Operational Protocol: Different strokes for different people. Therefore, some merchants will not accept your payments until your order has been shipped.

When You Make A Huge Purchase: Often, you notice a pending transaction when you make a huge purchase. The reason is that making massive purchases on credit puts the merchant at considerable financial risk.

How is a Pending Transaction Related to Credit and Debit Cards Operations?

When you swipe your credit card, the approved payment fails to reflect on your available balance like a pending credit card transaction. Generally, these pending charges do not last longer than 7 days before they clear up.

The amount’s pending duration depends upon the time you initiated the transaction and the time it takes your merchants to finish the transaction.

On the other hand, the effect of a pending transaction seems easier with debit cards. The reason is that the credit card only affects your available credit balance.

How does a Pending Transaction is Related To Debit Card and Credit Card?

When you swipe your credit card, the approved payment fails to reflect on your available balance like a pending credit card transaction. Generally, these pending charges do not last longer than 7 days before they clear up.

The amount’s pending duration depends upon the time you initiated the transaction and the time it takes your merchants to finish the transaction.

On the other hand, the effect of a pending transaction seems easier with debit cards. The reason is that the credit card only affects your available credit balance.

How does a Pending Transaction Relate to PayPal?

You can experience a pending transaction on your PayPal because it is a cashless marketing method. However, sending payments via the PayPal payment system differentiates it from credit or debit cards.

How To Cancel A Pending PayPal Transaction?

Canceling a pending PayPal transaction is only possible when you send the payment to someone whose email is not linked to a verified Paypal account.

But, if you pay a merchant who has not automated his payment acceptance, your funds are left to the merchant to accept or decline.


With eFormscreator, you can track your purchases and budget your finances. And you might be familiar about how to cancel a pending transaction on credit card, debit card or PayPal? If not, you can revisit this blog anytime you like.

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How To Find Your Employment History in the USA

What is Poverty Mindset?

How To Find Your Employment History in the U.S.

Dec 21st, 2023

Getting your employment history is not challenging. If you have worked in several places, recalling it can become challenging at times. But you can get information on your employment history via government-approved agencies.

In this blog, we shall enlighten you about how to find your employment history in the U.S. If you are looking for a paystub creator, then eFormscreator is your answer to it.

What is Employment History?

A person’s employment history is their work history that includes their previous place of work. Generally, your new employer will require your employment history as a part of the working process.

Employers use employment history to gain insights into potential employee’s past and employment verification. This also serves as proof of a person’s experience and qualifications.

Generally, when your work history is under review, employers look for the following details:

  • The time gap between your past jobs.
  • Staying power in your past jobs.
  • Diversity in your compensation rate.

How To Find Your Employment History in the U.S.?

Grabbing your service history can be a daunting task, firstly, if you have already worked in various places. The mobility of labor also contributes to most of the people’s difficulty in building their service history.

Below are some of the ways in which you can get your hands on your employment history in the U.S.

Social Security Records: Social Security Records provide you with the most accessible venue to generate your employment history in the U.S. So, it links all of your service history together.

Social Security keeps records of your payments to social security programs for your income. You can visit the Social Security Administration’s website to download an online copy of your 7050 form.

The Social Security Administration may require a small payment before giving your records. You might be required to pay $136 for a non-certified statement and $192 for a certified statement.

Alternatively, you can use this information on the report to fill out the necessary forms. In addition to this, your state’s unemployment office also provides social security information, which you can get at zero cost.

Via Your Tax Returns: Your tax returns provide valid information about your previous employers. So, your past W-2 includes information about the name and address of your employer, including your date of employment. If your tax returns are prepared online, you can view and download them from the website.

By Contacting your Previous Employers: If you are not sure about your work history over the years, you can contact your previous employers. Essentially, the HR department of your previous workplaces can assist you with getting information about your work history.

How Do You Get Your Employment History by Checking Your Credit Report?

If you supply your work information while applying for a credit facility, your credit reports can help you find your employment history. You can get your work history via credit reports by using a reputable site to access your credit report.

After viewing your credit report, you can contact the credit report agency where you notice some diversity. Credit report agencies include:

  • Experian
  • Equifax
  • TransUnion


Getting your employment history in the United States works well with your previous documents. You should ensure that your information across all the platforms, like Linkedin, is in symmetry.

If you want to create paystub you should definitely keep your tab on eFormscreator which is a 100% free tool.

Ratified Contract: Here is What You Need To Know About

Dec 20th, 2023

A ratified contract secures the buyer-seller relationship, which is a permanent deal. Whether you are saving to buy a house or start a small business, you must have a legal contract that spells out all the terms and conditions of an agreement.

Though the term ratified contract is more believable in the real estate world, it finds significant relevance in a modern digital business.

This blog will enlighten you with everything you need to know about ratified contract. If you are looking to generate paystub you should check out eFormscreator.

What is a Ratified Contract?

A ratified contract is an agreement between two parties under agreed terms and conditions waiting to sign the final contract. It is an agreement that has been approved but not necessarily signed.

Such occurrences happen when two parties enter into a negotiation, but one of the parties lacks the authority to sign the contract. So, the contract requires the interference of people carrying a higher cader of command for approval.

Why and When Do You Need a Ratified Contract?

A general understanding of negotiations and legal agreements enables you to correspond the right amount of power to your external representatives.

This will also help you avoid problematic situations and issues arising from want of legal understanding. Every buyer-seller transaction is a contract and might require further documentation and legal processes.

So, you can add online generated invoices to the transactional terms as a seller. Alternatively, you need a loan, your W-2 form, which also qualifies you to push through with the contract.

How To Ratify a Contract?

Sometimes, a contract does not offer enough assurance and coverage to guarantee business safety. Similarly, a signed contract is not always sufficient to be a binding agreement for a business owner.

For example, if your employee signs a contract on your behalf, the other parties might be required to ratify it. Ratifying a signed contract confirms that you accept the contract terms signed on your behalf.

In addition, ratifying a contract enforces it regardless of any valid reasons you may have to void it.

Below are the reasons to take towards ratifying a contract:

Step One: Study the agreement and ensure you understand its terms and conditions. You must develop a complete understanding of all the clauses which constitute the whole document. The reason is that you cannot ratify a selected aspect of the agreement. As a result, complete understanding and clarity are critical. However, if you encounter something you do not understand to the best of your ability, you can instantly call for voiding to invalidate it.

Step Two: Make a direct declaration which fully expresses your approval of the agreement. A direct declaration requires a written expression declaration that you approve and wish to enforce the contract.

Step Three: You must progressively honour the terms of the ratified contract. Essentially, once a contract is ratified, it becomes binding. Therefore, you are liable for any breach of contract.

Is backing Out of a Ratified Contract Possible?

A ratified contract is legally binding on all participating parties. It is impossible to back out of a ratified contract unless the other parties agree.

In this case, all the participants parties in the contract would have dissolved it. For example, ratification in real estate, a contract binds all conditions for purchase are lifted. This means the purchase agreement might not have been signed; the ratified contract to purchase remains binded.


Getting into a ratified contract requires utmost prudence, especially with voidable contacts. If you are looking for a paystub generator, watch out for eFormscreator, a 100% free tool.

What is Poverty Mindset?

Dec 19th, 2023

In today’s digital world, people think that being living in poverty is something to be ashamed of. People believe that those who are living in poverty don’t work hard enough to rise above their current position.

The feeling of poverty is one that many people in the world can relate towards. This kind of poverty mindset can be troublesome and blocking, but there are various ways to get out of it.

In this blog, we will discuss the poverty mindset, how it develops, and how you can adjust your mindset to start living a free life. If you are looking to generate paystub for free, then eFormscreator is the perfect choice for you to start with!

What is Poverty Mentality?

A poverty mindset is defined as the way of thinking which causes people to stay inside poverty. A person with a poverty mindset believes that they are poor because they deserve that position. This binds them to try to improve the current situation.

These lot of people tend to believe that there is no opportunity to change and that they are forever stuck in this pool of poverty. This type of mindset can lead to feelings of hope being lost, powerlessness, and anger taking over your mind.

A poverty mindset can be shared from individual to individual who hail from a disadvantageous background. It is very much possible to generate this type of mindset at any point in life, regardless of experience.

If we define a poverty mindset, it shall be defined as one in which the individual self-sabotage, unintentionally curbing their drive for a bunch by taking an antagonistic position towards the riches.

This is a subtle mindset that creeps up on you without your technical knowledge and is sometimes known as poverty mentality syndrome.

This is something you might passively obtain from your social environment. It can start with the slightest idea and grow up into a type of default negativity before you have a chance to mediate.

The good news for you is that though it is challenging to influence whether you have a poverty mindset, there are various ways to get rid from this situation and develop a healthier mindset.

How Does It Develop?

A person’s environment plays a prominent role in how their mind interprets events happening around them. People who grow up in a low-income background will always come to believe that they are designated for a life of poverty. This belief can be reinforced by where they live or the people around them.

Poverty V/S Wealthy Mindset

A poor mindset will accept and think that nothing will change for them and, therefore, make peace with the current situations in life. A poverty mindset believes that learning and progress, as well as social mobility, are out of their reach. Accepting failure without striving to develop and progress is a poverty mindset.

There are various reasons why you should break free from the poverty mindset and eventually from the vital poverty cycle. If you want to create a better future for yourself and your family, you must change your mindset.

However, it would help if you focused on accepting what you cannot change and being constant with what you have; you might also work on altering the surroundings around you.

People who are hungry for change and have a strong sense of mental toughness will see prominent growth more quickly than those who are satisfied with what they have. It’s simple: being angry with your current position will not lead you to break free from a poverty-stricken life and live a life of prosperity.

How To Get Out of Poverty Mindset?

  • Change Your Environment: If you are behind a desk all day long, take a walk instead. Start your day with a walk and let the nature effect soak in.
  • Connect With Positive People: Be on the lookout for people with positive attitudes and a mindset about success and wealth.
  • Start Saving Money: Even if you are struggling at it, save whatever you can. Make certifying decisions with money instead of generating more debt by buying momentary relief.
  • Fix Your Rates: There are various creative ways to sell your products and services so that everyone can win. Remember, like attract like.
  • Broaden Your Thinking: A creative mindset is limited to a poverty mindset position. If your business is not achieving the target that you had set to make it profitable, then you should make way for a fresh perspective.
  • Decide To Change: This is the most vital thing to take into consideration. Once you have made up your mind and made that decision, your mind will be open to new solutions, and they will present themselves in front of you. No matter the outcome, you do have a choice.


Look, achieving financial freedom isn’t easy at all. But it is all about having the right mindset and taking advantage of opportunities to change your current drastic situation for something better.

How To Create Paystub For Independent Contractors

Dec 13th, 2023

Do you need to generate contractor pay stubs for your business? You have landed on the perfect page. Being an independent contractor, staying on top of the right side of the IRS is vital. Paystubs provide detailed information about your earnings, taxes, and employer-paid benefits.

In this blog, we shall provide a solid insight into independent contractor pay stubs and how to create paystubs for self-employed individuals.

It is challenging to manage your paperwork when you are self-employed. As compared to traditional employees, you generally do not receive a pay stub that showcases your earnings and tax deductions.

How To Get Pay Stubs for a New Apartment?

Knowing How To Read A Pay Stub

Understanding the difference between current and year-to-date figures is vital while reviewing a paystub. Both are crucial, and the YTD balances assist the firm and the employee determine whether the amounts are accurate.

A pay stub summarizes wages, tax deductions, and benefit deductions. On the other hand, independent contractors’ pay stubs have no deductions from their pay.

States have different laws governing pay stubs. Though some states mandate it, others do not. Employers are required to open up their wage information to employees. Businesses should check laws in each state where they have employees to ensure they are compliant.

As evidence of income, workers should save their current pay stubs. When someone requests a loan, the pay stub verifies their gross income.

How Can You Generate A Paystub and Calculate Wages?

Generating Independent Contractor Pay Stubs

Before we dive into the contractor pay stubs needs, let us discuss how employers typically address pay stubs and all considerations around this. A pay stub is a document that summarizes an employee’s wages and deductions for a given pay period. It can be used for various reasons like payroll tax calculation, reporting to government agencies like the IRS, and employee benefit tracking.

Employers use different methods to generate paystub. Some employers print out paper check stubs for their employees, while others print them out via an online portal, which they can access via an app. The decision to print paper stubs is based on how many employees are being paid each paycheck because it can be costly to print a vast number of copies simultaneously.

25% of U.S. adults report paying late for goods and services in the last 12 months, including 16% who took more than one month to pay their bills. Some might consider this a financial hardship that makes paying bills difficult, including lack of income or medical emergency.

Pay Stub Software/Tool

Many firms use software or tools like eFormscreator to generate paystub for their employee. It can be tempting to download one of these paystubs for your records but beware, it might fail to meet your expectations.

Employers must provide pay stubs in various situations: when employees request them or state law requires it.

The best way to generate a custom pay stub template is to write down everything you want on yours when you get paid- go back through each line and identify which line statements are taxable or non-taxable.

It is vital to know the name of your employer, the number of hours you have worked in the last week, your gross wage earned by you, and any kind of deductions made on your behalf.

How Long Should I Keep Pay Stubs?

Creating A Paystub for Independent Contractor

Since you work for yourself, you do not get a traditional paycheck. That’s okay. You can use a free online application to create your own pay stub.

Keep in mind these steps:

  • Decide your home state.
  • Choose whether the pay stub is for the employee or for you.
  • Insert your personal information.
  • State your company’s information.
  • Finish any remaining field if left.
  • Include any withholdings.

Once you select the template and provide the necessary information, you can download your independent contractor pay stub to generate a quick online payment.

W-2 Form or 1099 Paystub?

Watch out for your documents if you still need clarification. The form the employee receives from their employer is the W2 form. This contains annual compensation and provides information on tax deductions and health insurance. This contains annual compensation and provides information on tax deductions and health insurance.

The appropriate form for independent contractors is a 1099-MISC form. It includes the entire income you earned for the year without any deductions.

Step-By-Step Guide To Filling Out The W2 Form


An independent contractor paystub is vital to the modern tax system and includes in-depth tax data, contract information, and benefits. As an independent contractor, you must stay on top of your payments and pay stub information because they improve the likelihood of a strong, mutually beneficial relationship with the agencies and beyond. If you want to create paystub eFormscreator is the best choice to move forward with!

Pros and Cons Of Cash Jobs In The U.S.

Dec 12th, 2023

Cash jobs are becoming increasingly popular in today’s economy as the cash economy continues to grow. It can benefit cash job seekers if they understand the pros and cons of cash jobs.

A good understanding can help determine whether job seekers are willing to give up benefits like retirement contributions. If you want to generate pay stubs you can use eFormscreator.

This blog will discuss the pros and cons of cash jobs in the U.S.

Understanding Your Pay Stub: All About YTD

What are Cash Jobs?

A Cash job is a type of employment where payment is made in cash instead of traditional methods like direct deposit. Employers are not required to report cash payments to the government. This makes cash jobs attractive for those who want to avoid paying taxes on their income.

Cash jobs can be found online via an employer that hires cash-paying employees. Not all companies offer cash-paying positions, but if they do, it is usually at a lower salary than traditional jobs.

When Should Workers Be Paid In Cash?

When you first begin, cash may be your most excellent option for controlling expenditures. It is also an intelligent idea for organizations to hire contractors rather than full-time employees to avoid paying Social Security and Medicare taxes, which might be quickly top-up.

Imagine you choose to pay an employee in cash without withholding any federal taxes. In that scenario, as a business owner, you must submit the IRS form W-11 with your accountant so that the cash payments to the IRS might be recorded.

Advantages of Cash Jobs

Job paid in cash can benefit the applicant in various ways. Let us take a look at the advantages of this.

  • Cash Employees Receive Larger Paychecks: Cash jobs can benefit you because they are not taxed. There are no payroll taxes that need to be paid for employers. This means that more money is in your pocket at the end of each pay period.
  • More Flexible Schedule and Provides More Freedom: The job paid in cash is not bound to any specific schedule. This means you can work whenever it is convenient and take time off whenever necessary.
  • Less Formal Process: Cash job applicants are not required to complete formal applications and provide references. This makes cash jobs an excellent option for those who need more time to conduct typical applications and are wary of providing personal information.
  • Get Paid Instantly: Job pay in cash is an individual’s dream come true. Some employers pay employees as soon as they finish their cash job duties. This makes their job more accessible for the employees to access their earnings and use them however they choose.

How Long Should I Keep Pay Stubs?

Disadvantages of Cash Jobs

Though cash jobs have their cup of advantages, they also come with a set of disadvantages.

  • No Benefits: Though the government does not report cash jobs, these employees do not qualify for employer-provided health insurance plans. This information can be found on the employee’s paystub. This means that the workers will need to pay out of their pockets if they want health care and save it on their own to retire on any given day.
  • Less Accountability: Cash-working employees are not required to perform a particular number of hours per week. This means they can apply only full-time or part-time depending on their cash job schedule and availability.
  • No Training Opportunities: Cash employees do not receive formal training from their employer and cannot access resources that can help them develop their skills. Employees who do not participate in training opportunities might need help finding employment elsewhere if they choose to leave their current position.
  • Unable To Save Money With Cash Jobs: Though cash-working employees still need to receive benefits like medical plans, they must pay for these expenses independently. Employees cannot save money for emergencies because their paycheck is used to pay bills and meet other financial opportunities.

Consequences of Cash Jobs

Having cash in your hand after a day’s labor might seem comfortable, but it frequently shows that the firms defrauded both the employee and government.

  • Income Tax Issues: Employees must disclose all their money and pay the proper tax, regardless of how they earn it.
  • Social Security Payments: The employees might not realize it now, but working under the table puts their Social Security retirement benefits in danger. Because the employer does not contribute to the employee’s Social Security or deduct money from their earnings, they do not receive credit for working.

Who Benefits More From Cash Payments? Employee or Employer?

Based upon the discussion above, a firm benefits more from paying employees in cash. Many view their professions as a method of making money and sustaining themselves, obtaining a salary- whatever shape.

How Can You Generate A Paystub and Calculate Wages?

As mentioned previously, labor rights are one of the most numbing problem. Because they are on the books at the workplace, they might receive different considerations of labor rights while on cash jobs.


If you are looking for cash jobs, it is vital to aware of the benefits and drawbacks of this type of employment. If you are looking for paystubs generator then you should see eFormscreator which is a free to use tool.

How Can a Bank Verify Income for an Auto Loan?

Nov 08th, 2023

If you’re interested in buying a new car, you might consider applying for an auto loan. It is not that everybody understands auto loans, which includes how banks can verify income for auto loan.

If your credit score is lower, your earnings are the main thing that the banks look at while considering your application for an auto loan. With eFormscreator, generate a free paystub

In this blog, we shall understand how banks can verify income for auto loan and much more. So, without further ado, let’s begin.

Why Do You Need Proof Of Income?

While applying for a loan, generally, banks do not need proof of your income to approve your loan. While applying for an auto loan, remember these three factors:

  • Credit Score
  • Down Payment
  • Debt-To-Income Ratio

If a customer applies for an auto loan with bad credit, lenders request proof of income and employment information to make sure that the customer can afford to pay the car payments on time. If you have an excellent credit score, the bank will mostly not ask you for proof of income as these factors tend to lower the risk of the lenders.

When determining your income, the lender considers your debt-to-income ratio. Your debt-to-income ratio is the actual amount of debt you carry as compared to your debt.

This debt might include a mortgage, student loans or even an auto loan. Generally, a good debt-to-income ratio proves that you have sufficient income to cover up your existing debt as well as the new auto loan.

Generally, there is a limit on how much total debt you can carry from the lender’s POV, and the maximum debt-to-income ratio that the banks accept can vary.

The minimum income required in order to qualify for an auto loan shall vary, but most of the lenders choose the applicant to have at least $1,500 to $2,000 in monthly income before taxes.

What Do You Need To Verify Income for an Auto Loan?

To verify your income for an auto loan, you might need to provide your lender with your latest W2 form. Make sure that the lenders might call your employers to verify that you’re currently employed with them.

If you’re a freelancer, you will have to provide a copy of Schedule C return.

How Banks Can Verify Income For Auto Loans?

Traditional Employment: If you’re an employee with a firm that receives a W-2 each year, the loan approval process is fast and smooth as long as you meet the minimum income requirement. Banks might ask you to see as many as your three last pay stubs to verify your income. No matter whether you’re a full-time or a part-time employee.

Generally, the banks might contact your employer by themselves to verify your income and employment status, which would speed up the loan approval process.

Self-Employed: In case you’re a self-employed individual, the process might be a little complicated. You will have to provide the most recent copy of your Schedule C. The higher your business income, the more chances are there that you shall pass your income verification for an auto loan with flying colours.

If you’re a self-employed individual, income verification can take a long time as banks have to verify your documentation. To avoid delays, you want to continue seeking a pre-approval before signing a dealership.

Unemployed: If you’re a unemployed individual, you still have to qualify for an auto loan, however the process is more daunting. Lenders might request additional documents related to your income streams. For example, if you are retired, you will be required to show copies of your Social Security Statements, 1099-Rs, as well as your most recent tax return.

For example, you haven’t retired yet but are unemployed, lenders might keep a watch on you as a high risk as they don’t know what would happen if unemployment insurance runs out before you get a new job.

You might need to verify your income for an auto loan if:

  • You have an excellent credit score.
  • You have a considerable down payment.
  • You have been working at the same job for an ample number of years.
  • You are applying for an auto loan and the same financial institution that your paycheck gets.


Applying for an auto loan is a long process, but it comes with unexpected obstacles. Having a basic understanding of what the lenders look for while approaching the applicants can give you an idea of what you can expect and that will help you get the relevant information together. eFormscreator  is a free tool which provides you with free pay stubs that not only saves your time but also makes sure that you have been covered from all sides for an auto loan.

Self-Employed? Here’s How To Show Proof Of Employment

Oct 12th, 2023

It is an easy task for full-time, contracted employees to deliver a proof of employment. All they need to do is ask the HR department at their firm for a copy.

Self-employed might not be able to show a proof without any help. Verifying employment is crucial when applying for a personal loan. In this blog, we will be covering how to show proof of employment if you’re self-employed individual.

Who is eligible to be a Self-Employed Individual?

Self-employed, commonly known as Independent Contractor report self-employment income. If you’re self-employed, you will work for yourself rather than for an employee.

As stated by the IRS, a self-employed individual is someone who:

  • Partakers in trade
  • Is part of a partnership in a trade
  • Is in business for themselves

Self-employed individuals may work for:

  • Writer
  • Editor
  • Designer
  • Salespeople
  • Construction Workers

What is a Proof of Employment?

Proof of employment is a form of document that hires companies to request to confirm an individual’s work history.

Below mentioned are the common reasons why a third party might want to verify your employment which include:

Loan Applications: If you are trying to apply for a loan, the lender will want to see whether or not you will be able to pay back their money which is based on your monthly income.

They might also want you to provide a proof of your employment. Once this is understood, the lenders shall establish how the repayment can be scheduled in terms of loans.

Applying to Rent: Many property owners rent out their houses and want to make sure that the new tenants will be able to afford the rent or not.

For example, are you going to work somewhere else or on the property itself? The proof of employment helps the landlord get a better understanding of your employment and if you have a stable income in order to cover the rent.

Searching for Another Job: If you’re looking for another job, salary negotiations will inevitably happen, and the interviewer will ask about your current salary, which they shall take into consideration. This will give the employer a brief overview of your past employment status.

Credit Card Applications: Finacial Institutions depend upon various factors when they consider requests for credit cards, which include the applicant’s current employment and salary. Proof of your employment shows credit companies that you will be able to meet your debt goals and their payments in a timely order.

How to Show Proof of Self-Employment?

HR departments at large companies have to deal with proof of employment and also have a system in place to issue these documents. However, if you’re a self-employed individual, you might need to generate these documents yourself in order to show a proof of your employment.

Annual Tax Returns: Form 1099-NEC is a tax document which is used to report the income earned by independent contractors. Firms are required to file a copy of Form 1099-NEC with the IRS and to send a copy to the independent contractor. This is because the IRS must know that how much tax revenue they can expect from a self-employed individuals. It is important to note that the independent contractor who has earned more than $600 from a business shall receive a Form 1099-NEC.

Form 1099-NEC is used for showing verification of your income. It provides physical proof of self-employed earnings, the amount earned, and where it came from. 31st January is the deadline to submit independent contractors with a copy of their Form 1099-NEC. It is also the deadline for providing the employees with a W-2 form.

Pay Stubs: A pay stub is a written document that showcases how much a person is earning during a specific pay period. There are different ways via which a self-employed worker can receive and create pay stub. One choice is to contact the HR department at the firm where you have provided services.

For a self-employed individual, this is the basic information listed on a pay stub:

  1. The name of the firm that provides the service for
  2. Independent Contractor’s Job Title
  3. Number of hours worked during a pay period
  4. The total wages paid before the self-employed worker’s deductions made
  5. State, Federal, and Local taxes withheld from an individual contractor’s gross earnings

Pay stubs are important because they can provide proof of income and employment for self-employed individuals.

Bank Statements: Bank Statements, commonly known as account statements- are documents that are typically sent by a financial institution to their account holder each month.

This account statement is a history of all the transactions that the account holder makes during a particular period of time. The statement contains bank account information like account numbers detailed list of the holder’s total income and expenses.

For lender and financial institutions, a bank statement can be the proof of the employment and can afford to meet their repayment dues on time.

Employment Verification Letter: An employment verification letter is the kind of document which is written by a current employer who confirms the employment status of the current employee. Potential employers and other various government agencies can request an employment verification letter.


So, now you know that if you’re a self-employed individual and need a loan for a car, showing a letter of self-employment as proof of income this should not be a problem for you and in case you need to create paystub, we have our very own free paystub generator for you to generate a pay stub easily.