{"id":3146,"date":"2022-04-14T11:54:45","date_gmt":"2022-04-14T16:54:45","guid":{"rendered":"https:\/\/www.northone.com\/blog\/?p=3146"},"modified":"2023-05-17T23:01:02","modified_gmt":"2023-05-18T04:01:02","slug":"what-is-a-pay-stub","status":"publish","type":"post","link":"https:\/\/www.northone.com\/blog\/accounting\/what-is-a-pay-stub","title":{"rendered":"What is a Pay Stub? What Do I Need to Show My Employees?"},"content":{"rendered":"\n

If your staff gets a check or direct deposit, what they see is their net salary. They may wonder how you arrived at that figure. How much of their wages, for instance, was deducted<\/a> for income tax? In the pay cycle, how many hours were they reimbursed for? How much money have they received this year?\u00a0<\/p>\n\n\n\n

A pay stub helps you make this information clear. Salary stubs provide important information about your workers’ gross pay\u2014as well as the deductions made from their paychecks each pay period.<\/p>\n\n\n\n

<\/span>What is a Paycheck Stub?<\/span><\/h2>\n\n\n\n

Pay stubs are sometimes also known as pay slips or paycheck stubs. The pay stub explains the specifics of an employee’s compensation each pay period when they get their paychecks from you. <\/p>\n\n\n\n

While federal law does not force companies to give employees a pay stub, some states have legislation requiring some type of documented pay statement. Even if you don’t live in a jurisdiction that mandates pay stubs, the Fair Labor Standards Act compels you to maintain an account of your workers’ working hours. <\/p>\n\n\n\n

While paychecks can still be given physically, they are frequently provided digitally. <\/p>\n\n\n\n

<\/span>How do you offer pay stubs as an Employer?<\/span><\/h2>\n\n\n\n

Anytime you pay an employee<\/a>, it\u2019s crucial to include pay stubs with the payment. This serves as a record of the transaction. It\u2019s important so that both you and your employee can see exactly what amount they received.  <\/p>\n\n\n\n

When creating pay stubs for employees, double check to make sure that all of the information is correct. This will be important for your employees tax returns, and to prevent any fraud<\/a>.  n the next section, we\u2019ll go over what information should be included and how to get it from your employees.<\/p>\n\n\n\n

<\/span>What Does a Paystub Look Like?<\/span><\/h3>\n\n\n\n

Paystubs don\u2019t have to fit in just one format. You can customize it to look however you like. The most important thing is that all necessary information is provided, and that it\u2019s correct. The information should be clearly laid out, so employees know exactly how much they were paid as well as other details like tax withholding, etc.<\/p>\n\n\n\n

<\/span>What Information Is Included on a Paystub?<\/span><\/h3>\n\n\n\n

There\u2019s a list of items that must be included whenever you create a paystub for employees. You can find this information online<\/a>, but there are also software solutions<\/a> that will make the process easier and keep you in compliance with all applicable laws and regulations. <\/p>\n\n\n\n

<\/span>General Information<\/span><\/h4>\n\n\n\n

Pay stubs will usually include information about both the individual and the employer (such as name, address, and social security number, as well as company name and address). You will want to get this information off the employee when they start.   <\/p>\n\n\n\n

<\/span>Gross wagesIncome <\/span><\/h4>\n\n\n\n

Your employee’s gross pay (also known as gross income) is their earnings before taxes. This is the full amount your worker has made before federal, state, and other deductions have been made from their compensation. <\/p>\n\n\n\n

If your employees are paid on an hourly basis, their gross wages are determined by multiplying their hourly wage by the number of working hours in a pay period. For small businesses with salaried staff, divide their compensation by how many pay periods they have in a year to get their gross income.<\/p>\n\n\n\n