What is a Pay Stub and What is Included in It?
A pay stab is a paycheck section that displays information about the employee's pay. It lists the wages earned for that particular pay period and year-to-date payroll. It also shows the taxes and other deductions taken out of an employee's earnings. To get more info, click what is a paystub
. The pay stub shows the net pay of the employee.
Pay stubs can be given either as electronic or printed. Some states require that employers offer their employees with pay stubs. The information that is added on the pay stub will vary depending on the state. It is good to keep a copy of each payroll stub for your payroll records.
What is the Use of Pay Stubs
A pay stub contains information that applies to both the employer and the employee. For the employees, this is a record of their wages. The workers can review the pay stubs to assess whether they were paid correctly and also to help them understand their deductions.
The an employer can use the pay stubs to reconcile any inconsistency with employee pay. If an issue comes up about the worker's pay; you can use the payroll pay stub to fix the problem. When it comes to filing of taxes; you can refer to the pay stubs to fill out each employee's Form W-2.
What is Included in the Pay Stubs
The pay stub contains a lot of information that will help the employer and the employee to keep track of deductions and subsidies. Read on to find out the information included on the pay stubs.
Gross Wages: Gross wages form the starting point of an employee's pay. The gross wages is the total amount an employee is owed before the deductions have been taken out. To get more info, visit paystub
. The gross pay is calculated differently based on whether the employee is paid a salary or hourly. When calculating the hourly pays, the hourly rate is multiplied by the number of hours worked. The salaried worker's pay is arrived at by dividing the annual salary with the number of pay periods in the year.
During the payment period, the workers do not take home the gross salary. Payroll taxes, as well as other deductions, are made to reduce their earnings. The pay stub will itemize the deductions so that the employee can see the amounts that have been taken from their gross pay. Some of the common deductions on a pay stub include the employee tax deductions, employer contributions, and benefits and other contributions.
Net Pay: The net pay is the amount left over after the deductions have been subtracted from the gross pay. This is the amount that a worker will take home. It is the money that the employer will indicate on the worker's paycheck or deposit into their bank account.
Net pay is recorded in the pay stub allowing you to access the current net pay and the year-to-date net pay. Learn more from https://en.wikipedia.org/wiki/Paycheck