Establishing your own business has many advantages. 

However, managing your employers also means you have to send in monthly pay stubs and yearly W-2 forms.

Although this process sounds difficult at first, you must send out these documents as you are required to do so by law. Fortunately, there is an easy and quick way for you to create your own pay stubs and W-2 forms using our free online generator!

So, keep reading to find out everything you need to know about pay stubs, W-2 forms, and which one is needed to pay your taxes.

A pay stub is a document that employers send to their employees for a detailed breakdown of their salaries.

A W-2 form is a document that showcases the total wage amount of the employee after the tax reduction.

The best way to file your taxes is through the W-2 form.

Filing your taxes with your last pay stub is possible but not recommended as it is not considered an accurate statement of your income.

The most efficient way to make W-2 forms and pay stub is to use an online generator.

 a document that lists all details of an employee’s wage

, such as the total wage, tax reductions, and any additional contributions. Additionally, the pay stub helps employers keep track of their employees’ wages.

Employers are required by law to use pay stubs, and they must send them to employees every month in addition to their paychecks. Additionally, 

, pay stubs should be kept for four years.

If you’d like to create a pay stub, use our 

 The process will only take around two minutes, and all you have to do is fill out the template!

a document that lists the employee’s income and the total amount of taxes that were held back from their paycheck

. The employer should send the W-2 form to their employees at the beginning of the new year or at the end of the current year. Moreover, this form is used to file all taxes, including federal and state taxes.

A W-2 form is a document that the IRS requires employers to send because it shows all information about the employee’s wages.Therefore, the document must be sent to both the employee and the IRS.

Besides the tax deductions, the W-2 form also lists the amount spent on contributions such as health insurance and any additional savings accounts.

To create your own W-2 form, head over to our 

How to File Taxes With Your Last Pay Stub

It is not usually recommended to file taxes with your last pay stub

.That’s because your last pay stub is not considered an accurate statement of your income, and chances are they haven’t listed information that will make you file a full tax return.

If it comes to a situation where you need to file a tax return that has missing information, you will be asked to file an additional amended return. This will make the process more costly, and the IRS will take longer to issue you a refund.

If you’re unable to file your taxes with a W-2 form and want to use your final pay stub instead, use 

 The form is available on the IRS website,and all you need to do is download it and attach it to your last pay stub. In this case, your pay stub must include detailed information, such as:

Any additional deductions or compensations

Once you ensure that the pay stub includes all of the above-mentioned information, attach it along with the IRS Form 4852 to your other federal tax return form and send it to the IRS.

It’s important to note that each US state has different regulations when it comes to filing taxes without a W-2 form. You should contact a representative of your state to get any additional information about your taxes.

Comparing the Last Pay Stub to a W-2 Form

The main difference between your last pay stub and the W-2 form is that when you compare the two, you will get two different outcomes

. The pay stub, in this case, will show the total income amount that the employee has received. On the other hand, the W-2 form shows the total taxable earnings that an employee has received throughout the entire year.

Therefore, the W-2 form lists all of the taxable wages that have been noted after pre-tax deductions.

The pre-tax deductions include everything from health insurance plans to 401(k) contributions. Your income amount will generally be higher than what is listed on the W-2 form.

Why is Gross Earnings Different on Your W-2 Form Compared to Your Last Pay Stub?

Here are some of the most common reasons why your gross earnings are different on your W-2 form compared to your last pay stub:

#1. Last Pay Stub Contains Non-Taxable Income

One specific scenario is when the last pay stub contains non-taxable income. 

This can include anything from reimbursing gifts, compensation, benefits, etc. Usually, these types of non-taxable incomes are listed on the employee’s paycheck.

For example, let’s say that Jake’s total gross income is $78,000, and during the year, he received $6,000 in reimbursement compensation. The total taxable wage that Jake will report on his W-2 form will be $72,000. ($78,000 – $6,000 = $72,000)

#2. Last Pay Stub Contains Company Retirement Plan

If your last pay stub contains a company-planned retirement plan, it will not match your W-2 form. 

Company retirement plans fall under the 401(k), 403(b), or Simple IRA plan.Due to this plan, your federal taxes and wage income will be reduced.

As an example, if Amy’s total gross income is around $85,000 and, during the year, she has decided to contribute around $5,000 towards her retirement plan, her total wage will be $83,000. ($85,000 – $5,000 = $83,000)

Usually, a company will offer a health insurance plan to its employees. 

If the employee has agreed to be part of the plan, the total gross amount will be deducted

. Moreover, company health insurance plans are usually the main reason why your W-2 form doesn’t fully match your last pay stub.

Let’s take Mikey as an example. If his full gross income for the year is around $106,000 and he decides to contribute around $12,500 to his health insurance plan this year, his total taxable wage will be $93,500. [$106,000 – $12,500 = $93,500]

You can get a W-2 form from your employer, as they need to give you copies of the form at the end of each year.

 If by any chance you cannot obtain a copy from your employer in time, you can also get it from 

However, the quickest way to obtain a W-2 form is to get it from your employer. The employer is required to submit the form to the SSA, and once the administration has processed it, they can send the form to the IRS to check for federal tax information.

A W-2 form can either be sent by the employer or the provider of the payroll. Additionally, they can send it:

The W-2 form will be sent to you if you have earned at least $600 in the current year. Moreover, you will receive a 

 instead of a W-2 if you are a contracted worker instead of an employee of a company.

You can get your last pay stub by either contacting your employer or a representative of the company’s human resources department.

 They will tell you what to do to obtain your last pay stub and how long it will take to receive the document.

After you get an answer, you will most likely need to make a request to get your last year’s pay stub. This process usually includes the following:

Sign the form and send it either by email or mail

Contact the representative to make sure they received the request

Once you clarify the waiting time, the representative can send you the pay stubs by mail or email.

Ultimately, whether you’re an employer or an employee, you will need to tackle both pay stubs and the W-2 form. Both documents are required by law and serve as proof of your tax payments and deductions.

Although the process might sound tedious, it doesn’t have to be. Use our pay stub and W-2 form generator, which will easily guide you through a step-by-step creation process!
We can also help you generate other documents, like 

Read our easy-to-follow guide to learn how to file taxes with the last pay stub and create various legal documents with an online generator!

How to File Taxes With the Last Pay Stub [2023]

Although a beautiful profession, acting can be hard. On top of that, 

as an actor, you will have to deal with paperwork and provide all your new clients with actor invoices

. This is one of the most important documents because it outlines the services you provide and allows you to bill your client.

But what exactly is an actor invoice, and how do you create it?

Making it from scratch on your own can be difficult—and that’s where we come in! 

Why waste your energy, time, and skills on dealing with invoices when you can use a free template?

 This article will explain what an actor invoice is and show you how to create this important document hassle-free using our online invoice generator!

An actor invoice is a document that outlines the services you provide as an actor and states your payment terms.

 It’s used to professionally bill your clients, whether you’re hired to do commercials, plays, modeling, feature films, or anything similar.

The easiest way to create an actor invoice is to use an invoice template. With a template, you won’t have to waste time making this important document manually, and you will be able to:

Store invoices digitally and safely on the cloud

Ensure all important information is there

Now that you’re familiar with the meaning of actor invoices, 

let’s break down the details that typically go into these key documents

First things first, you’ll need to enter your contact information so that the client knows who the invoice is coming from.

 The information that you should write down includes your full name, email address, physical address, ZIP code, phone number, etc.

If you want to make your actor invoice look more professional, you should also 

 to the document (if you have one). It will make your services easily recognizable.

Next, specify to whom you’re sending the invoice. This means you also need to state the client’s full name, email address, phone number, and other important contact information.

Once you’re done filling out your and your client’s contact information, you need to add a date to your invoice and number the document.

 This will help you effortlessly keep track of your invoices later on when you’re filing taxes and cope with your paperwork with zero complications.

The invoice number is also super important because you are required by law to have it in some states. In fact, some clients may not even accept your invoice without it.

The best way to go about this is to use a sequential numbering system. For example, if it’s your first actor invoice, start with #001. For your second invoice, use #002, and so on, even if the clients are different.

This is one of the most important sections of your actor invoice because it requires you to clearly describe what your client is paying for.

 If you’ve been hired for different acting roles by a single client, use different lines for each service and add the rates you expect.

In this section, you should be as specific as you can be—the more specific you are, the lower the odds of any miscommunication occurring will be.

After you've written down every service you’ll be providing to your client, you need to specify how much they owe you for each one.

 As an actor, you can choose between charging your clients per the number of hours you’ll be working or per service.

Then, write down the exact amount or the net sum you should get for the services provided. You need to make this number easily noticeable, so the client can know how much they owe you as soon as they look at the invoice.

Most importantly, add the payment method you accept—PayPal, bank transfer, credit card, or any other option of your choice.

Lastly, write down any details you think your client might find useful when reading your actor invoice. 

This can be any information on the project you’ll be working on, additional details regarding your services, or anything else you deem meaningful.

Adding a thank-you note is also a nice touch to your invoice, as it will give it a warmer tone and help you maintain a healthy business relationship with your client.

When Should You Send an Actor Invoice to Your Clients?

There is no definite best time to send an actor invoice to your clients, as it mostly depends on the type of services you provide. As a rule of thumb, you should send your invoice upon the completion of work if it’s a one-time performance.

If you’re hired for a project that will take longer to complete (e.g., acting in a feature film), you should ask for an advance payment. But, most importantly, regardless of when you decide to send your actor invoice, make sure you clearly note the payment cadence.

How to Invoice as an Actor in a Few Simple Steps

By now, you might be wondering how you can actually create an actor invoice.

For this, you can either use a program like Word or Excel and make the invoice from scratch, which isn’t recommended. This method can be a bit time-consuming, and worst of all, it’s prone to errors, especially if it’s your first time creating an invoice.

If you want to make your actor invoice easily, you should use our free online generator.

 With it, you can get this important document tailored to your preferences in a few steps.

Once you’re done, you’ll be able to download your actor invoice instantly. 

Then, you can either forward it to your client via email in PDF form or print it and mail it to them.

Now that you know how to make your actor invoice, 

here are some tips that can make your invoicing process easier

Once you fill out your actor invoice, be sure to go through the billing address again. This way, you minimize the chances of receiving a late payment due to an error.

An invoice should clearly tell your client how much they owe you, when they’re due, and what they owe you. So list every item separately, include detailed rates, and make the invoice easily digestible for the client.

If you have treated your client to a discount or a bonus, be sure to include it in your invoice. On the other hand, if they have to pay a late payment fee, you need to specify that as well.

The best way to store your invoices is to use a cloud service. This way, you’ll secure your documents from any natural disasters or cyberattacks, and you’ll always be able to find them easily, as they’re stored online.

Besides the actor invoice, there are also numerous other types of invoices you might find handy. 

Check out the table below for more details:

An actor invoice is a legal document that breaks down the services you provide as an actor, and it’s used for billing clients.

Generally, an actor invoice includes your and your client’s information, the invoice date and number, a list of services, payment terms, and any additional notes.

The best time to forward an actor invoice to your client is immediately upon completion of work.

Some useful invoice types include advance invoices, credit invoices, digital invoices, and freelance invoices.

The most efficient way to make an actor invoice is to use an online generator, which can provide you with a customized invoice in no time.

The job of an actor is one of the most time-consuming yet rewarding jobs out there. 

That’s why you shouldn’t waste your time on paperwork and invoicing.

If you want to save a bunch of time and focus on your work, use our invoice generator. With it, you can make your invoices in a few easy steps without wasting hours creating this important document from scratch.

We can also generate other legal documents for you, such as the 

Even actors need to do paperwork. Read this article and find out what an actor invoice is and how to create one easily with an online generator!

The Ultimate Guide on Actor Invoices [2023]

Invoice payment terms are a staple of all bills and invoices freelancers, contractors, and other businesses send to their clients. 

They break down the pricing of their goods and services and give them better control over their cash flow.

More importantly, clearly specified invoice payment terms help businesses know how quickly they can expect to be paid, so they can plan for future expenses accordingly.

If you want to find out more about invoice payment terms, you’ve come to the right place!

This article will list the numerous benefits of invoice payment terms, show you the best practices, and teach you how to make an invoice effortlessly!

The failure to track customer payments proves detrimental to any business operation.

Invoice payment terms or payment terms contain essential information needed in any transaction

, such as the payment due date, specific payment terms, and all other contractual agreements between the buyer and the seller.

Payment terms may be used to hold customers accountable for their purchases by ensuring they provide the payment equivalent to their order. At the same time, the terms give your accounts payable department an idea of when to follow-up customers for their payments.

, freelancers can benefit as well from using invoice payment terms, particularly when they supplement them with a legally binding contract. The contract must contain an agreement on the goods offered and accepted between all involved parties in exchange for something of value, such as cash or services.

Some of the key components of invoice payment terms include:

 Every invoice has a date that states when it was issued.

 Specifying the currency in your invoice payment term is especially essential if you are selling your services or 

 This information enumerates all the different types of payments that your business accepts. Some of the most common payment methods include bank transfer, credit cards, digital wallets, and online transfer.

Provide the total amount due that the customer must pay in exchange for the goods or services they ordered.

 The payment due date specifies the latest date when a payment can be made or sent by a customer before the seller marks it overdue.

 This will include any additional fees or penalties if payments are sent past the specified due date.

Here are some examples of invoice payment terms abbreviations that typically appear in a billing or an 

This means that the customer is qualified for a 2% discount if they send payment within 10 days. Full payment is expected by the seller after 10 days, but the final due date for the payment is 30 days from invoice date.

The payment is due on the 21st of the month following the invoice date.

These typically appear when a customer exceeds a specific number of items in their order, making them eligible for a discounted price.

The customer fulfills the payment before the goods or services are shipped or received. CIA can usually be done through credit card payments or wire transfer.

 This detail appears when items are delivered regularly. It may be monthly or even weekly, and the customer must complete their payments before the next delivery is processed.

The customer pays for the item or goods upon delivery in cash.

This refers to a type of transaction where two businesses or companies agree to exchange services or goods that are of equal value. The payment is in the form of the goods exchanged.

Cash with order means the payment is made at the same time that the order is made.

The payment is due at the end of the month when the invoice is issued.

 The customer must pay in full before the goods they ordered are delivered.

Also called a refund or pay back, rebates are sent to the buyer if they send payments in excess.

 It refers to a set of payments or installments agreed upon by both the seller and the customer that the latter must settle over a period of time.

There are different types of payment methods that you can include in your invoice terms.

 Also called payment due upon receipt, cash on delivery, or payable upon receipt. This type of payment is fulfilled upon the delivery of services or goods.

 In this case, the customer must send payment in advance for the services and items they want to purchase. Sellers can offer a discounted rate for the prepayment.

 Otherwise known as a downpayment, 50% upfront expects customers to pay half of the total cost. It is mostly applicable to customized goods and services.

This payment method consists of partial payment plans that help make payments more manageable for customers. Here, the total cost of the item is divided into smaller payments.

 Under this payment method, customers are offered credit for the services and products they purchase. The accumulated credit or balance is then repaid on an agreed payment schedule. Line of credit is a high-risk payment method and is most commonly used by large corporations.

These are regular or recurring payments fulfilled by customers either monthly or annually. Spotify, Netflix, and Amazon Prime are common examples of services paid on subscription basis, while retainers are used in legal services, consulting firms, and specialized services such as marketing and design.

Benefits of Detailed Invoice Payment Terms

In the section below, we’ll talk about some of the benefits of having detailed invoice payment terms.

Payment discrepancies are not always the fault of the customers. 

For example, an invoice that contains ambiguous and incomplete information could cause miscommunication between the seller and the customer.

For instance, the invoice may not have clearly stated the payment due date or the accepted payment methods, or it may have inaccurately described the payment terms agreed upon by both parties.

So, always double-check that you enumerate complete and accurate information in all your invoice terms at all times.

Whether you accept installment or subscription-based payments, going 

for the shortest possible payment term is always ideal

Giving customers too much leeway regarding their payment obligations often leads to higher instances of late payments. Whereas, if you set the payment deadline to seven or 15 days from the invoice date, you have a higher chance of receiving full payment earlier.

It is also worth noting that the longer the payment is due, the more customers tend to forget or disregard their financial obligations to your business.

Complete invoice payment terms secure consistent and improved cash flow control. 

When you describe in full detail the total amount due, when the payments must be made, and on what terms, you reduce any room for error for your customers.

All that’s needed is for the buyer or customer to fulfill the expected payment based on the terms and methods stated in the invoice. By consistently issuing detailed invoice terms, you establish a concrete system that secures your business against potential losses and stalled revenue.

It is unfortunate that scams are rampant these days, and businesses, regardless of size, are not exempted from being targeted by fraud. 

You need a form of leverage to protect your business in the event of any 

For instance, a customer with an overdue payment might argue that you did not specify when the payment is due. However, if you have clearly stated a deadline in your payment terms, the claim will likely backfire against the customer, clearing you from any potential liabilities.

 to customers, especially if the payment deadline is near.

 At the same time, you can use your invoice payment term to track any habitual late payers among your customers.

Consequently, you can set up an email or push notification in advance to remind customers to send their payments and reiterate accepted payment methods to help ease the process for them.

Now that you are familiar with invoice payment terms and their benefits, let’s give you some tips on how to prepare them!

Specify the deadlines for customer payments.

 It is not enough to state that payments are due “30 days from invoice date,” as this could easily be misinterpreted.

Supplement the information with a concrete deadline. Ensure that this key piece of information is indicated clearly and legibly in the invoice.

One of the main reasons why habitual late payers do not seem to care that they have overdue payments is the lack of clear consequences for their delinquent accounts.

Introducing late fees sets a clear limitation that customers must acknowledge

 to reduce instances of overdue payments. Most customers would not want to shoulder the additional costs that result from sending payments past the deadline.

If you are handling multiple orders and making invoices on your own, it is inevitable to commit a few errors in your invoice terms.

That’s where online invoice generators come in! They automate the invoicing process for you.

 Generators are easy-to-use, don’t take as much time as programs such as Word or Excel, and they’ll provide you with flawless invoices!

Don’t limit your customer’s options to a single payment method. Instead, 

offer alternatives to highlight customer convenience

Customers appreciate it when sellers offer more than one payment option, as this enables them to settle their payments faster and more easily.

If there are consequences for overdue payments, then it is also fitting to 

offer rewards in the form of discounts for customers who can settle their payments early

Rewarding customers for early payments reinforces this type of behavior from your customers. Discounted prices are also an effective way to build rapport with your customers and entice them to explore your services and products.

Discussing the payment terms before sending the invoice is more plausible for 

. That is because some arrangements and conditions need to be thoroughly explained to the client first.

Explain your payment expectations from the clients. Provide additional information on their payment options, along with the coverage of the services that they are paying for.

Invoice payment terms are a set of agreements between a buyer and seller that detail conditions specific to goods or service transactions.

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