Pay stubs cab be identified to as the slips of papers that a person being remenerated for the first time is given and they accompany cheques. Those who are new to an organization, for instance, a person who has recently been employed to a firm are most likely to be issued with the pay stub. Pay stubs have very critical information that is relevant to both the employer and the employee and they should therefore be stored in a place that they will be safe to avoid being damaged or getting misplaced. 2 years is the least amount of period whereby one is required to keep the pay stubs. What Does a Pay Stub Look Like?
The information that is contained in the pay stubs is mostly of explanatory status. It is a must that information regarding employer’s address be included in the pay stub. The pay stub slip should also be able to indicte the name of the organization. All relevant employees’ details such as their name and the last four digits of their social security number should also be attached. The pay stub should include all the employees total earnings, which should then be subjected to carefully explained deductions. After subtracting all the deductions from the gross income, the net earnings received by an employee should then be indicated in the pay stub. The date of peparing the pay stub should finally appear at the end of the document in the form of day, month and year. The aggregate salary an employee receives after various deductions should also be included in the pay stub. Get more facts about paystub at this website https://en.wikipedia.org/wiki/Wage.
The pay stub should comprise of the summation of all the money a person will get by considering a particular rate for those individuals who receive their pay on hourly basis. The different modes payments and the rate at which an employee is being paid at per hour are also part of the hourly information needed to be included in the pay stub. The various payment modes for employees who volunteer to work more hours outside the working times is also included in the pay stub. What Does a Pay Stub Look Like?
Pay stubs plays a crucial role in maintaining trust issues between the employee and the employer. The employer is able to assure the employee that he is being awarded all the earnings that he is entitled to receive. Not a single person can be happy if some money is deducted from his income without them having prior knowledge as to why it was done. The government too, relies on the use of pay stub to determine the amount of tax individuals and businesses have to pay.