One of the essential elements when it comes to paying workers is pay stubs. Providing a deep look of the workers’ salaries by employers is needed. Allowing employees to have an in-depth analysis of their salaries is beneficial. Helping in cutting down any discrepancies and confusion is one of the significances of this. Aside from that, it provides a tangible record for both the owner and the employee. In this article,you will find info of everything you should know about pay stubs. You may be wondering what a pay stub is. You should read more here.
A documentation that gives information of staff salaries is referred to as a pay stub. It provides details such as the hours worked by the employees and taxes. Nowadays, pay stubs are received by workers electronically because many of them are paid through direct deposits to their banks. Business owners are required by the law to monitor the hours and wages of each employee and to avail to them pay stubs. A pay stub is also called a check stub.
Employees will have it easy accessing loans and applying for apartments if they have check stub since it verifies their income. To make a pay stub legitimate, it should have specific information. Personal data about the worker is one of the vital things to include in a pay stub. To assure the worker that they were paid correctly, the personal data should be identifiable. The pay stub should have the identification number, name, social security number and date of birth of the worker when it is required for verification.
The pay period of the staff whether it is monthly, bi-weekly or weekly should be indicated on the pay stub. With this, the employer can calculate the number of hours worked by the workers and it also provides an organized record of the hours worked and wage paid. It is essential for the pay stub to have hourly wage. What several workers find to be critical in the pay stub is this information. A pay stub should have a record of the gross pay; this is another important information. Gross pay is the amount of cash paid to employees before deductions like taxes and others are done.
Payroll deductions such as taxes and health insurance that come from the workers’ salary should be shown in the pay stub. After the deductions are made, the remaining amount of money, known as net pay that the workers takes home should also be recorded in the pay stub. The pay stub should also record overtime, vacation and sick days of the employee; read more here. Having a software that generates pay stubs is necessary. Getting pay stubs is easy and quick with the high-end technology available.