Are you wondering what does a pay stub look like? If yes, you should check out our guide here on the information included on one.
In today’s digital world, many people don’t ever think about their pay stubs. However, they contain vital information and are great record-keeping tools.
Employers and workers both have a responsibility to know what information should go on a pay stub. This knowledge may come in handy for tax purposes or HR bookkeeping.
If you’re asking yourself “What does a pay stub look like,” keep reading. We’re going over what’s included on one and what it means.
Number of Hours Worked
For hourly workers, each pay stub will have the number of hours worked for that pay period. These pay periods are usually two weeks long, but this can vary depending on the company.
Pay stubs will also indicate if an employee worked any overtime. This is important, as these hours will garner higher wages.
Salaried workers can also have their hours added to their pay stubs. Although they make the same each paycheck, this is a great way to keep track of hours worked.
Employee Pay Rate
Pay stubs should indicate the amount per hour an employee earns. For salaried employees, the stub will show the amount of pay they receive each pay period.
If an employee works overtime hours, a separate line should indicate how much they get for those hours. Businesses that create pay stubs in-house need to understand what overtime rate to give. They have a legal obligation to pay a certain amount based on state laws.
All pay stubs have a line for the total amount an employee earned before taxes. This is the employee’s gross pay.
Gross pay includes all forms of income, including regular pay, overtime, paid personal time off, and vacation pay. These should all get itemized.
There should also be a line for the gross pay for the current pay period and year-to-date. This is the total gross pay an employee has earned throughout the year.
Next, there should be a section that lists tax deductions. These will vary depending on the person’s situation and the state they work in.
Most pay stubs include a federal income tax, social security, and Medicare tax. Some states require a state income tax as well.
A pay stub should also show any other deductions such as 401K, insurance, or voluntary charitable deductions. These, along with tax deductions, should have current along with year-to-date amounts.
Finally, every pay stub shows the total amount an employee gets for that pay period. This is what’s left after the deductions get subtracted from the gross pay. The net pay for salaried workers will be the same on every stub.
This is another item that will show an amount for the current pay period and a year-to-date amount. Employees can easily track how much they’ve brought home for the year.
What Does a Pay Stub Look Like? Keep This Guide Handy
Just because you get paid digitally doesn’t mean you shouldn’t evaluate your pay stub regularly. It’s a great tool for tracking your income and taxes.
If you’ve been wondering “What does a pay stub look like,” use this guide and make sure yours has all the right information.
We hope this article has proven useful. Check out the rest of our site for more business-related content.