What is a Pay Stub?
Pay stubs, also referred to in the form of pay slip is a detailed record of an employee’s pay. It lists all wages received in the specified period of duration (hourly pay (also known as salary overtime, tips and commissions) together with the year-to date and the current deducts. It also includes FICA taxes, as well as tax withholdings on income.
Although the majority of states don’t demand employers to send pay stubs for employees Certain institutions require pay stubs so that they can provide proof of continuous employment and earnings.
A pay stub is a type of paper issued by the employer to summarize an employee’s earnings during a specific pay period. The pay stub is composed of:
· The total amount of hours the employee worked
· The gross amount the employee received (before deducting any amounts)
· Federal, state local, and federal taxes are taken out of the gross earnings
· Other withholdings, such as the share of premiums paid by employees
The employee will be presented with a pay slip each pay period. The details on the pay stub must be in line with the information on every employee’s Formula W-2 which they fill out to file taxes. In order to create a pay stub, the first procedure is to have each employee fill out a the form called W-4. After you have a completed W-4, it’s time to collect the necessary information for the pay slip.