27 Jan What is Pay Stub, Pay Slip, or Paycheck Stub?
Pay Stub, Pay Slip, and Paycheck Stub. They all mean the same thing.
When an employer pays their employees, the staffs should receive a document called either Pay Stub (also called as Pay Slip or Paycheck Stub). It displays the details of the calculations applied to the paycheck. Details including how much salary an employee gets paid and what type of taxes have been applied to their wage. The information will generally include details that has been applied to the employees’ salary like how tax is taken out, gross pay, net pay, benefit deductions or contributions. An employee will receive pay stub as a notice showing that the direct deposit transaction has sent through. From the document, they should have mandatory information displayed, which varies in different states.
Below is an example of a Pay Stub document.
It should include…
- Name of the Employee
- Period and Date of the Payment
- Hours Worked
- Gross Pay: money owed to employees before deductions are made.
- Deductions: Medical and 401 (K)
- Taxes: Federal Income Tax, Social Security, Medicare, State Tax, ect
- Employer Contributions: Employer Social Security, Employer Medicare Tax, State Unemployment Tax, Federal Unemployment Tax, etc
- Direct Deposit Information
- Net Pay: actual money that employees get in the end
Do Employers have to give their Workers a Pay Stub?
It’s not a mandatory thing to send your employees a pay slip according to The Fair Labor Standards Act (FLSA). However, it says the employers need to keep accurate records of employees’ work hours and salaries. Have a look throughprimepay.com. to learn more details.
As said above, it’s essential that you need to keep the accurate records of employees work hours and salaries.
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