What Is A Pay Stub
You have to know the information on a pay stub if ever you are an employer. Knowing the information on a pay stub will help you look for payroll errors. This will also allow you to assist your employees to decipher their paychecks.
But it is important for you to know what a pay stub is.
The pay stub will provide the list of details about the pay of an employee. It will itemize the wages that an employee earned daily and yearly. It also shows the taxes and deductions on the earnings of the employee. The net pay or the amount that the employee actually receives will also be listed on the pay stub.
The printed or electronic pay stub are the two types of pay stub that you can give to your employees. There are some states that will require employers to provide pay stubs. If you want to have payroll records, then you can keep a copy of every pay stub.
The next thing that you should know is the use of pay stubs.
The pay stub will provide information that employers and employees can use. The pay stubs received by the employees will act as a record of their wages. You can always review the pay stubs if you want to know more about your deductions and if you are paid properly.
You can also use pay stubs to handle some problems with employee pay. If there is some concern on the pay of an employee, then you can solve it by taking a look at the pay stub. During tax time, the Form W-2 of an employee can be filled out with the use of a pay stub.
You also need to know all of the information included in a pay stub.
A lot of details can be seen on the pay stub that will help employers and employees understand the payments and deductions. The items on the pay stub are usually broken down into 3 categories, taxes deductions and contributions, net pay, and gross wages.
Gross wages – these are the starting point of the pay of an employee. The gross wages show the money that the employee owns before deductions are taken out.
You can find the gross pay of an employee included on a pay stub. The information regarding the gross pay will be grouped in 2 separate columns.
Hours worked – the pay stub for an hourly employee will include the number of hours worked. The salary workers can also include the hours worked on their pay stubs.
Pay rate – the pay stub of an employee must always include the pay rate. Hourly workers will have their hourly pay rate included on their pay stubs.
Gross pay – the pay stub will also list all the wages that an employee will earn before the deductions. Aside from the regular wages, employees can also earn extra income.