What is a pay stub? Everything you need to include

For example, as an employer, a pay stub is an amazing tool for tax purposes when it’s time for you to submit your quarterly 941s and when it’s time to fill out your employee’s W-2 form. You won’t have to crunch numbers at the last second when you have pay stubs on record. If you are unsure about login information or where to find a pay stub, you can ask your manager or someone in the human resources department to assist you. They will likely provide you with online access or give you physical copies of the pay stubs for any given pay period. State tax rates vary significantly from state to state; some states, like Florida and Texas, don’t have a state income tax. If you need to pay state income taxes, they are calculated in much the same way as federal income taxes.

• “One of the nice things about a personal loan is that it’s one of the simplest financial products,” Ibo Dusi, chief operating officer of Payoff by Happy Money, told Insider.
• Regardless of whether or not an employer is required to issue pay stubs, workers can still submit wage claims, whether they’re W2 or 1099 workers.
• Details of those requirements vary from state to state, so it’s important to consult with state labor offices, especially if your organization does business in more than one state.
• If your circumstances change, then you should inform the IRS or your company’s human resources (HR) department as soon as possible.
• They typically include payments towards Social Security, Medicare, and potentially other retirement contributions.
• A paper pay stub often follows a standard template with necessary information like pay period dates and year-to-date totals.

Including a line-item pay breakdown is one way employers avoid causing confusion, and with a skilled compensation manager, that’s a doable task. Depending on the size of the deductions, an employee’s net pay may be significantly lower than their gross pay. On the employee’s pay stub, net pay is recorded for the pay period and cumulatively for the year. Many companies list codes on their paycheck specific to how they do business or the benefits they offer to employees.

How can I improve the pay stub experience for employees? 4 Tips

Gross earnings include several different forms of payment, detailed below. If you are a government employee receiving payment from the state, you can often request copies of pay stubs directly from the state government website. In New York, for example, you just need to input some personal information, as well as the pay period you are asking for. Once you enter all the relevant information, the pay stub tool will create the pay stub for you. Many professional employer organization (PEO) services do the payroll for you and will provide employees with a pay stub so that you don’t have to do the work of creating it on your own. Most payroll providers will create the pay stub for you when processing your payroll.

In addition to basic personal information such as your name, Social Security number, and potential employee ID, there is a lot of information displayed on a pay stub. Below, we break it down so it’s easier to understand when you start earning an income. When you get paid a physical check, you’ll likely receive a physical pay sub pay stubs meaning detailing your pay information. Otherwise, you can obtain an electronic copy should you be paid via direct deposit. Finally, your paystub can be essential in holding your employer accountable. If you check your pay stub regularly, you’ll be able to notice and rectify any payment inaccuracies, tax withholding issues, and more.

Spending too much on recruitment, payroll or global HR?

Across the USA, some states don’t require employers to generate pay stubs, while in other states pay stubs are mandatory, but the rules vary on what details must be included. Companies should check with local laws to ensure they are providing pay stubs displaying accurate information when they are required to do so. Employers may provide their workforce access to pay stubs through specialized online portals. These portals usually require a secure login, ensuring the confidentiality of sensitive financial information.

Employers are required to keep records of hours worked and pay issued for three years under the FLSA. For example, in Hawaii, employers must hold onto pay stubs for six years. Employees are typically encouraged to hold onto their pay stubs for one year to give the employee enough time to ensure the information contained on the W2 is correct.