Pay Stub

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Paying employees is more than just giving them what is due. Being a responsible employer also means helping employees understand how they are paid. Aside from paychecks, employees also receive pay stubs. It is an important record stating relevant information about employee wages. In this article, let’s find out more about what pay stubs are and what’s on them. 

What is a “pay stub”? 

A pay stub is a document that employees receive each pay period. It indicates details about an employee’s earnings, the deductions taken from the earnings, and the net pay or the amount that the employee takes home in a paycheck. Each pay period warrants a new pay stub so that it is always updated. 

Generally, pay stubs are attached to an employee’s physical paycheck on a separate piece of paper. However, pay stubs can also be given electronically to employees via email. Each employee is sent a separate email to ensure security and confidentiality. Electronic pay stubs are given when employers give wages through direct deposits.

Are there other names for a pay stub? 

Yes, pay stubs are also called paycheck stubs, payslips, or earnings statements. These terms can be used interchangeably and mean the same thing. 

Why is a pay stub important? 

Pay stubs are important because they provide employees with a record of their earnings and deductions. This way, the pay stub will answer common questions from employees about how much money they earned, the amount of contributions and taxes they paid, and how much they will get to bring home. With a pay stub, the numbers are in black and white. But if employees need further assistance in understanding what‘s written on their pay stub, they can approach their employer or the company’s HR team.

For employers, they can use pay stubs as a guide when explaining wages and deductions to employees. It is also a useful guide when filling out W-2s.

What can be found on a pay stub? 

Pay stubs reflect useful information about how much an employee has earned, how much was subtracted from the earnings, and how much an employee takes home. In general, a pay stub shows the following: 

Additionally, pay stubs can also reflect year-to-date earnings and deductions. They may also include the number of remaining leave balances, overtime, shift differential, and tips. 

Are all employers required to give pay stubs to employees? 

There is no federal law in the United States that legally requires employers to provide pay stubs to their employees. However, many states require them to do so. If you are an employer, it is best to check with your state’s labor office regarding their rule on pay stubs. It is also important to note that the Fair Labor Standards Act (FLSA) requires employers to maintain a record of the earnings of their employees and the number of hours that they worked. Employees are also entitled to request these pieces of information when they want. 

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