Smart Ideas: Income Revisited

Undersatnding Pay Stub Templates

In a pay stub, you will find how much wages an employee is paid before and after tax is deducted. There are some states that require employers to provide pay stubs for their employees, and in order to comply with these requirements, then employers can use pay stub options online.

What is contained in a pay stub are the basic data fields that show your earnings and deductions. Items can be left blank or deleted from a pay stub template if you don’t use them. Employees can now print their own payroll reports as the manage their account information online or through a mobile app.

State law dictates what is to be included in a pay stub. Pay stubs are important because it proves that payment was paid, and this is very useful in cases of dispute or in case you are audited. You should include all the items that your state requires in your pay stub.

Useful information should be included in your pay stub templates including number of hours worked during the pay period, year-to-date balances and paid time off taken. Pay stub templates sometimes include specific descriptions on the purpose of pre and post-tax deductions like medical insurance, commuter benefits, life insurance, or uniform fees.

The blanks in a pay stub template are easy to fill in. This will ensure that you are documenting your employees’ gross earnings, deductions, and net pay correctly. Today, you will find many different pay stub templates that you can use for free which you can find online.

Pay stub generators can also be used online and it only takes putting in your pay stub data manually. There are many websites today that offer free trials and others allow you to choose your own professional looking template that cost a few dollars to use.

The DOL does not require pay stub retention but they require the retention of payroll information for three years. Tax documentation should be retained for four years as required by the IRS and six years for some states.

Many starting business do not use payroll services but pay their employees with checks or cash. If you are an employers, then you should see to it that you document the payments that you have given to your employees including taxes and deductions. Pay stubs also help you meet requirements of the DOL to retain payroll documentation even though your state does not require you to give employees pay stubs.

Using a payroll service can help you fulfill the requirements of your state to provide pay stubs to your employees. You can find payroll software that calculates and files payroll taxes, pays employees through direct deposit or printed checks. This can also be used by your employees to print their own payroll reports and pay stubs.

Why not learn more about Statements?

The Beginner’s Guide to Income