How a Pay Stub Looks Like.
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. Pay stubs are mostly given to those people who have not been with an organization for a long time like a new employee to a firm. 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. The minimum duration in which a person is supposed to maintain the pay stub records is 2 years.
A lot of the information contained in the pay stub is often of explanatory nature. It is compulsory that information regarding how to reach the employer be included in the pay stub. The company’s name should also appear on the pay stub slip. the last four social security number and the names of the employee, which are very important details of the worker, should be included in the pay stub. Similarly, an employee’s gross earnings should be indicated followed by a proper description of every type of deduction that have been removed from the employee’s income. Following the various deductions that have been made against the gross income, the net earnings should be determined and the figure included in the pay stub. At the conclusion of preparing the pay stub, the date of preparation should appear in form of day, month and year. The net salary of the employee should also be included in the pay stub.
The pay stub has to take into account factors such as the total summation of income received by people who work on an hourly basis at a given rate of payment. 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.
The levels of honesty between the employer and the employee by eliminating mischief is enabled by the use of pay stubs which serves a vital role in establishing such a relationship. The employee is able to be shown by his employer that he has been paid all his income in accordance as to how he is supposed to get. Any individual is likely to be saddened by the act of subtracting some figures from his earnings without them having being consulted as to why it is being done. The government too, relies on the use of pay stub to determine the amount of tax individuals and businesses have to pay.