A pay stab is part of the paycheck that contains the details of the employee's pay. It itemizes the salaries earned during a pay period and the year-to-date payment. It also lists down the taxes and other deductions made out of the employee's earnings. It then shows the net pay the worker gets.
Pay stubs can be given either as electronic or printed. It is a requirement by some states to give the workers the pay stub. To read more about Pay Stubs, visit paystub. The info included in the pay stubs differs from state to state. You can retain a copy of each payroll stub for your payroll records.
The Work of Payroll Stubs
A pay stub contains information that applies to both the employer and the employee. The employees are offered with the pay stubs as a record of their wages. They can use the information to assess whether they were paid correctly and also appreciate their deductions.
The an employer can use the pay stubs to reconcile any inconsistency with employee pay. If an employee raises an issue about their pay, you may need to solve it by looking at the pay stub. The pay stubs are also useful when filing taxes as you can apply to them to fill the employee's Form W-2.
What is Included in the Pay Stubs
There is a lot of information included in the pay stub to help both the employer and employee keep track of payments and deductions. Read on to find out the information included on the pay stubs.
Gross wages are the starting point of a worker's pay. Gross wages is the money that the worker is owed without the deductions being made. The gross pay is calculated differently based on whether the employee is paid a salary or hourly. To get an employee's hourly pay, increase the hourly rate with 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. There are payroll taxes, and other deductions made that reduce their gross earnings. Read more about Pay Stubs from what is a paystub. Deductions are listed on the pay stub to enable the employee to see the amounts taken from their gross pay. Some of the common deductions on a pay stub include employer deductions, benefits and other contributions, and employee tax deductions.
Net pay is the amount that remains once the deductions have been made from the gross pay. This is the amount that the employee will take home. This is the money that an employer will write on the employee's paycheck or direct deposit into their bank account.
The pay stubs records net pay hence you can find both the current net pay for the pay period and the year-to-date net pay. Learn more from https://en.wikipedia.org/wiki/Paycheck.