Yes, absolutely. It is important that you generate a pay stub and copy for your self. The employee needs to know exactly what hours they are being paid for, the rate of pay and exactly what has been deducted in taxes if any. In addition, you may have made a mistake with their hours. If no taxes were deducted you still have to provide an
IRS form at the end of the year, usually a
1099.
You will need to keep these records for at least 10 years should the IRS or your state ever decide they need to do an investigation.
My advice to you is to sign up with a payroll service. They will do everything. It is usually about $60 per month for a small company. Your not having to spend time involved in paperwork you do not fully understand coupled with their expertise makes this a worthwhile expense. Any mistakes you make in payroll taxes and filling will have expensive repercussions.
I have tried several,
Quickbooks (or Intuit) Payroll works best for me, filling out timecards through the accounting software I already use streamlines the efficiency of the process even further.