What is Paystub? Definition, Requirements, and Key Elements

The record-keeping document given to the Employee with their paycheck is known as a “pay stub”. The pay sub is something that employee use to confirm the tax deducted that led to the final payment amount. It is different from country to country. 

However, it s rules and regulations. A pay stub can be created as an individual part of the paper, and This may exist in electronic form. Paystub also known by the name pay slip, earning statement, or salary statement.

Elements of Pay stub

Pay stubs are given to the employees, and every pay stub should have basic elements commonly established in all the pay stubs.

Elements are basically included in the pay stub.

• General information
• Pay period:
• Gross wages
• Tax deductions
• Voluntary deductions:
• Employee benefits deductions
• Involuntary deductions
• Net pay

How can I Create a Pay Stub?

For creating a pay stub, you have the following options. These options are:

• Choose our professional services
• Choose a professional pay stub generator
• Create pay stubs manually
• Choose an online payroll system with expert team.

Why Should I Provide a Pay Stub?

It’s a better practice to give a pay stub to your employees. It will save you from many administrative problems. You don’t have to face payroll problems when you have a pay stub record. You must need to keep a record of employees’ hours worked and salary, according to the Fair Labor Standard Act. And your business also gets an involuntary audit by IRS. Having a pay stub record will make a big difference.

It also causes peace of mind for employers and employees when you provide pay stubs. It causes a component of transparency about their gross salary being allocated. Pay stubs will prove very useful for a contractor who needs to prove his gross salary when getting a credit card or buying a car. Providing pay stubs to your employees is a part of being compliant.

What information do paystubs  give?

Pay stubs show essential information about your employees from identification to details of their salary. There are some examples you will find on pay stubs:

Basic details of Employee

• Name of Employee, employee address, social security number, etc.
• Dates for pay period and year
• Pay date
• Name of employer and employer address

Employee Pay Breakdown:

• Pay rate, whether on salary or paid hourly
• Number of hours worked
• Gross wages for a specific pay period and year to date (Pay before deductions)
• Pre-tax deductions for various employee comfort.
• Miscellaneous factors like sick leave and overtime pay

Federal and State Taxes Withheld from Employee:

• Federal income tax withholdings (FICA taxes, Social Security, etc.)
• Income tax withholdings Year-to-date section for federal and state tax.
• Local taxes

Other Information:

• Net pay after deduction taxes(Gross pay minus deductions)
• Voluntary deductions (retirement plans)
• Health insurance and life insurance
• Employer contributions

An example of a pay stub you see online will have different information from the one you choose. But the main thing is that a paystub accurately shows the crucial details like gross salary, tax deduction, net payment, etc.

Is a paystub the same as a paycheck?

What’s on a Paycheck?

A paycheck is a physical check given to the Employee for the amount of his salary or worked base hours. Almost 5% of workers still receive a paper paycheck. This is an old way to pay wages to employees. Now most businesses (both small and large) pay employees salaries an automated payroll like a finger check.

What’s on a paystub?

On the other hand, a paystub summarizes all amounts contain within a paycheck. Employees paid via direct deposit receive an electronic pay stub. Almost 81% of employees use an online web portal to access paystubs.

Information on the paystub includes:

• Employee name, address
• Tex deduction
• Pay period
• Rate of salary

As we found the details of the paycheck and adp paystub, It is clear that the paycheck and paystub are not the same. They are different from each other. You can choose our best paystub services for UK and US.

Conclusion

As we discussed, the paystub is a major document that shows employee transparency on how they are getting paid. It keeps the record of gross pay, the deduction of tax, and the remaining net payment. It gives year-to-date information. In this way, the Employee can see how they are doing work for the entire year. So it is better to create a professional paystub for your employees by choosing our professional services.