What is a Pay Stub? What to Include on an Employee Pay Stub
Pay stubs are important record-keeping documents that benefit both you and your team members. However, the rules, regulations, and customs surrounding pay stubs differ from country to country – and even state to state. This can introduce a lot of administrative and human resources challenges if you’re hiring globally. Providing pay stubs will also add to employees’ and contractors’ peace of mind. It adds an element of transparency about how their gross pay is being allocated.
How to Read a Pay Stub
- It’s worth noting, in some jurisdictions, employers are required to keep their employees’ pay stubs on record for a certain period.
- A pay stub is an essential document that contains information about the employee’s pay history.
- The IRS requires employment tax records to be saved for four years after filing fourth-quarter taxes for the year.
- After-tax deductions include medical expenses, interests, and other losses to casualties.
- As the recipient of a check, you may be interested in finding out more about the amount you will receive.
- Digital pay stubs bring transparency and avoid confusion on both ends (employee and employer).
But you can use the pay stub to verify that the W-2 information is accurate. In some cases, landlords may require that you prove your income if you’re planning to rent a home, apartment or condo. Unlike major lenders, landlords typically https://www.bookstime.com/ don’t have a wide portfolio of tenants to spread their risk. If you miss payments, it could cause significant problems for the landlord. Organize your pay stubs and any other evidence of hours you’ve worked and pay you’ve received.
What are the best payroll processing services?
The paystub shows any deductions such as taxes, insurance, retirement contributions, union dues, or extra withholdings. Understanding these helps individuals grasp their total compensation and check whether the right amounts are being withheld. While some jurisdictions do require employers to provide their employees with pay stubs, others don’t.
Miscellaneous Deductions:
Banks and real estate agents often accept paycheck stubs as proof of income, allowing employees to rent and buy property or apply for a loan. While the above elements are all commonly found on paystubs, they may vary depending on your personal circumstances. For example, you may live in a state that doesn’t collect state income taxes. Or you may be on someone else’s healthcare plan, so you wouldn’t have any benefit deductions on your pay stub. Some require that employees have access to pay stubs, while others require that the pay stub be printed and handed to the employee. Plenty of withholding tax abbreviations are present on your pay stub.
How Do You Access a Pay Stub?
Other documents like pay stubs and medical bills need to be hung onto for a little longer, but utility bills aren’t something you need to keep for years. Regularly checking your pay stubs helps you catch mistakes early. Whether it’s a wrong deduction, a missing bonus, or a pay miscalculation, spotting these issues fast allows you fix them before they cause bigger problems. Unexpected changes in your pay from one period to the next can mean there’s an error that needs looking into. Workable payroll integration is a game-changer for organizations looking to simplify the pay stub process.
Paying taxes
Shradha’s expertise in human resources shines through her content, offering valuable perspectives on effective hiring and HR tech. Submit this form to gain full access to our OmniCalculator, so you can easily estimate employment costs across the globe. The information pay stubs meaning on this page is for informational purposes only and is not to be construed as legal advice. Pay stub templates are the cheapest option but the most error-prone. However, these templates are readily available and easy to use even if you have zero accounting experience.
- With great advantages such as payroll processing, tax compliance, seamless integration, and user-friendly portable, it is the best ally of HR.
- Fortunately, you can use a pay stub creator to create professional pay stubs for your employees.
- Pay rate is the number of man hours and the hourly, weekly, and monthly rate for a particular pay period.
- More detailed definitions can be found in accounting textbooks or from an accounting professional.
- It also details deductions taken from the employee’s paycheck, including taxes, insurance and certain benefits.
- If you work by the hour, your hourly rate and the number of hours you worked for the pay period will be listed.