What Are Paystubs and Why Are They Important?

What Are Paystubs and Why Are They Important

Providing paystubs to employees is a legal requirement in some states. Even if you don’t fall under these laws, it’s required by law to keep track of your employee’s hours in some manner.

But if you’re just starting out as a company, you might be wondering ‘what are paystubs?’ If that’s the case, keep reading to learn more about what is a paystub!

Why Are Paystubs Important?

Paystubs are important because they protect you and your employees. For example, if your employee notices any discrepancies in their check, a paystub can help verify work hours, tips, and wages.

Employees can also use paystubs to provide proof of income for a house, car, or loan. Paystubs are also used when you’re filing self-employed taxes and keeping track of employees.

What Is on a Paystub?

Paystubs have a lot of personal information about the company but mostly the employee. Here is a list of common information found on paystubs:

  • Employees full name and birth
  • Employees social security and address
  • Company name and address
  • Gross earnings
  • Weekly or monthly earnings
  • Pay rate
  • Health and life insurance deductions
  • Retirement plan and pension contributions
  • The total amount of earnings after taxes and dedications

All of this information helps the government and IRS keep track of your workers and your business! If you’re still wondering what to put on a paystub, a paystub creator can help you!

How to Organize Paystubs

As you can see from the list above, there is a lot of information that goes on a paystub! A paystub creator can help you create an organized and concise document.

However, if you prefer to create your own document try and keep certain information grouped together. For example, your business name and address should be at the very top, along with the employee’s name and address.

Keep all of the different taxes withheld separate from other deductions to reduce any confusion. For example, the social security, federal income, and state income should all be under one collum. And any medical or retirement deductions should also have their own columns.

Different State Laws on Paystubs

If you live in Florida or Alabama, you don’t have to provide a paycheck stub. However, you need to keep track of your employee’s work hours

And if you live in Ohio or Texas, you need to provide an electronic or paper paystub for your employees. Kansas and Indiana have similar laws but if you provide an electronic paystub, your employees need to have printing access to them.

If your state wasn’t mentioned above, you should do research on your state’s labor laws involving paystubs!

No More Wondering ‘What Are Paystubs?’

Following labor laws is important for you and your employees! And now that you know the answer to ‘what are paystubs?’, you can feel better about your business.

If you are interested in reading more content, explore the rest of our website for the latest news!

Written by Crystal Rae

Leave a Reply

Your email address will not be published. Required fields are marked *

How to Dry Your Hair Fast When in a Hurry

How to Dry Your Hair Fast When in a Hurry

What Are the Main Causes of Hair Loss

What Are the Main Causes of Hair Loss? 4 Common Causes You Should Know About