As a hard-working employee, a pay stub is a critical item that you need to receive at the end of each payment cycle.
But what are pay stubs?
There are different forms of payment stubs, and with the increasing move towards a paperless, digital age this is only expanding the different formats they can be presented in.
Yet, regardless of layout, all pay stubs need to contain a certain set of information to be valid. Keep reading to learn what counts as a pay stub and what information it should show.
What Is a Pay Stub?
A pay stub is a document that accounts for and confirms the work you have done within any given payment period and how much you have been paid for it.
While there is no official legal requirement for an employer to provide a pay stub to an employee, there are generally benefits for both parties to do so. Given the information captured, it is a means of security for both to ensure that any quarrels or concerns about time worked and the amount paid can be settled quickly and without issue.
Physical or Digital, It Doesn’t Matter
As we move away from a paper-driven society and into the digital age, there has been a rise in the number of digital pay stubs being used.
That’s fine, and for many, even the better choice. Digital records are easier to file away, take up no space, and should a search through historical records be needed it can be done without fuss.
An online pay stub creator is the next step in the future of pay stubs and accurate employment record keeping.
What Information is Needed on a Pay Stub
As important a document as a pay stub can be, there are certain requirements with regards to the information they contain that makes them a valid pay stub.
A solid pay stub example is one that includes all of the following data.
- Gross Pay
- Taxes both state and local
- Benefit/Insurance deductions
- Garnishments
- Pensions
- Back Pay
- Net Pay
Depending on your individual circumstances, some of these items may differ, but in general, this is what you should be looking for as a pay stub example.
Understanding What Counts as a Pay Stub Is Vital
Being able to answer the question about what counts as a pay stub is important, but understanding why a pay stub is important and what it can be used for is something else.
What is a pay stub useful for?
Pay stubs not only allow you to check what you have been paid, but they help you to check back and confirm the payment is correct for the hours worked. They also mean you have everything you need – at the touch of a button for online pay stubs – for filing your taxes. A pay stub is also useful when applying for a mortgage or a loan as it offers a definite proof of your income.
For more information on dealing with life’s finances, check out some of our other posts today.