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Paycheck stub, payslip, pay stub – you may have heard all of these terms being used to describe the detailed outline of what your employee’s pay has been for each payment period.
As an employer, you need to understand what information needs to go on a paystub. By having an understanding of what a paystub is and what information it should include, you’ll be able to catch payroll errors officially. Plus, you’ll even be able to help employees understand the deductions and taxes that are being taken out of their checks if they come to you with any questions.
That’s why today, we’ve created a complete guide to help you better understand what a pay stub is and what information it should include. Keep reading to learn more!
What Is a Pay Stub?
A pay stub is a portion of a paycheck that contains details of how to pay an employee is receiving. On a paystub, the wages will be itemized for the pay period, as well as how much they’ve earned a year to date.
Information on taxes and other types of deductions will also be shown on your paystub. A paystub also includes the net pay that an employee is receiving.
Paystubs can be provided via printed or electronic records. There are some states where there’s a legal requirement for you to provide pay stubs to your employees.
What Information Goes on a Paystub?
As an employer, you need to know what information you need to include on a paystub. Here’s all the information that you need to include on your paystub:
- Dates of the pay.
- Employee information, such as Social Security number, address, and then
- Information of your business, such as your address and name
- The rate that you’re paying your employee
- Their earnings before taxes
- Deductions that are taken out
- State taxes
- Any other type of local taxes the employee’s pay
- Employee contributions
- Net pay, which is how much the employees taking home from their paycheck after all deductions, contributions, and taxes have been taken out from their gross earnings
Understanding the information that you need to include on a paystub how to ensure that your business follows state requirements. If you’d like to learn more about how to create a paystub, check out www.paystubs.net.
What Are Pay Stubs Used for?
Your paystub is a useful tool to resolve any discrepancies between you and your employee about how much you’ve deducted in taxes and how much money has been withheld for other deductions.
A pay stub is a record for employees to use to ensure that they are paid correctly for their work. It’s also a tool used to act as proof of employment and income for your employees if they decide to apply for a loan.
If you don’t provide your employees with a physical check at the end of the pay period, a paystub can be sent out by your payroll department to let your employees know how much they’ve made during that pay period.
Understanding Pay Stubs
As the owner of a business, you don’t receive paystubs like the rest of your employees. However, understanding the information that should be included on a pay stub will ensure that your business is operating beneficially for your employees.
Are you interested in learning more about how paystubs can benefit your business? Check out our blog for more.