A paystub is a record of an employee’s salary details that is issued along with a physical paycheck. When employees are paid electronically, a paystub is often in a digital form such as an emailed document. Although federal law does not require employers to provide their employees with a paystub, many states have laws that require employers to supply them.
Paystubs are also known as payslips, earnings statements, salary statements, and paycheck stubs. These records help employees gain a better understanding of their salary, as well as any deductions that have been made such as tax withholdings, retirement funding, and health insurance payments.
What Information Should Be Included When I Generate a Paystub?
Paystubs should generally contain certain information that is commonly found on all salary statements. The following information is typically included:
- General information: The document should have basic information that identifies the employer and employee such as name, address, and the employee’s social security number.
- Payment cycle: A paystub should list the total hours worked and clarify the allocated days that were worked during the month.
- Wages: Gross pay should be based on a salary or calculated using a rate per hour.
- Tax withholdings: A salary statement should have information that identifies taxes that are deducted from an employee’s salary.
- Benefit withholdings: Payslips should include amounts withheld for benefits such as medical insurance and pension fund payments.
- Net pay: Payroll processing should involve the calculation of gross pay less deductions to determine the amount of money the employee will take home.
How Long Should Employees Keep Their Paystubs?
It is generally recommended that employees keep their earnings statements for at least one year. Salary statements are particularly useful when it is time to file taxes, so these documents should be kept somewhere easily accessible.
An employee can use their old paystubs to reconcile their W-2 forms and check social security contributions made during the year. Oftentimes, digital copies of paycheck stubs are preferred by employees because they can be kept on the hard drive of a computer, making them easy to store.
Advantages of Paystubs
Using a check stub maker in your monthly payroll system is beneficial for your company because it provides salary records that employees can use to understand taxes and deductions. These documents ensure that salaries are paid correctly and any discrepancies can be resolved with employees.
In addition, employees can use their paystubs as proof of income or employment when applying for a loan or some form of credit. Due to this, employers are generally advised to create a paystub for each employee and make it easy for them to access these documents.
Make Paystubs Conveniently Online
PayStubCreator is a payroll software that will help if you have a number of employees and do not want to create a paystub by hand for each employee. This paystub generator is easy to use as your information simply needs to be submitted and the paystub creator will perform accurate calculations. The generated stub is subsequently emailed to you so you can download and print or email the document.