A pay stub documents an employee's compensation for a specified pay period. Employers often present it with employees's paychecks or make it available online as a downloadable PDF.

Paycheck stubs work as follows; gross pay, or the amount an employee receives before withholdings and taxes are deducted, is going to be shown on the pay stub.

Federal and state taxes, Social Security and Medicare contributions, and any voluntary payroll deductions, such as health insurance premiums or retirement plan contributions, are all going to be itemized on the pay stub. Moreover, the employee's net pay, or the amount of money the worker takes home as a paycheck after deductions, is shown on the pay stub.

The pay stub provides year-to-date totals for earnings, deductions, and net pay, the total amount earned for the present calendar year. They are able to additionally contain the payment period dates, the employee's name and address, the employer's name and address, and any relevant payroll codes. Nonetheless, this varies from company to company.

Pay stubs benefit workers and employers since they detail an individual's earnings and any applicable deductions. They provide evidence of the worker's earnings for tax and reporting functions.

Aside from complying with legal obligations and avoiding fines, payroll check stubs provide employees with the assurance that they’ve been paid correctly. They also help employees and contractors understand their taxes and file their returns.

You are required to show genuine paystubs when applying for loans and mortgages, renting property, and making large purchases. They are also helpful if an employee had an accident at work and needs to file a compensation claim.

It depends on their state. In some cases, it’s compulsory and employees have to have printed paystubs. These are known as access/print states.

Other states are access only states, meaning that employees must be able to access their pay stubs electronically, but a hard copy isn’t compulsory. Finally, some states have no specific requirements about paycheck stubs, so it is up to employers to decide whether to provide them.

In addition, there are opt-in and opt-out states.

With opt-in states, companies are mandated to supply printed check stubs unless an employee decides to access them electronically. Opt-out states have to obtain employee consent before changing their method of access and have to stick to their existing method if the employee prefers it.

With that said, all employers need to be aware of how the Fair Labor Standards Act (FLSA) affects them. This act applies to any business with annual revenues of $500,000 or more, or those conducting interstate commerce. In fact, this law applies to the vast majority of US businesses.

The FLSA involves rules about record keeping. Records including payroll, purchase and sale information have to be kept for three years and records relating to wage calculation need to be retained for two years. It’s worth looking into the FLSA to confirm exactly how this may apply to your business.

With it being so easy to generate paystubs in a few clicks, why not be on the safe side? Managing payroll across multiple states is a challenge fraught with complexity. Use a check stub creator as security to prevent legal issues – in fact, fines for not providing proper check stubs can be as high as $5,000 per employee.

Yes, paystubs are able to be used as proof of income. Pay stubs give a complete summary of an employee's earnings, taxes, and deductions, which is able to be used to verify an employee's income when applying for loans, mortgages, or other types of credit.

Pay stubs must be accurate, and current, and include all pertinent information, including gross pay, net pay, taxes withheld, and deductions, when used as evidence of income.

Lenders or other institutions are able to need a certain number of pay stubs to verify an applicant's income, depending on their specific requirements. Employees must keep their pay stubs organized and accessible to make producing evidence of income easy.

Ultimately, pay stubs are a vital tool for both workers and employers, giving a thorough record of an employee's wages and acting as evidence of income when required.

HSA stands for Health Saving Account, a type of tax-advantaged account for individuals with High-Deductible Health Plans (HDHPs). The contributions into the HSA can help pay for medical costs that HDHPs don’t reimburse for.

ER on check stubs stands for Employer Responsible and is the amount employers pay for health coverage.

Some other common payroll check stub abbreviations include:

• CHD SU: Child support
• DCR: Dependent care reimbursement
• INS/MED: Medical insurance
• HCR: Healthcare reimbursement
• STD: Short-term disability withholding
• LTD: Long-term disability withholding
• FSA: Flexible spending account
• Den: Dental premium

• Minimum 1 year: For tax filing and potential employer disputes.
• Longer for loans/rentals: Some lenders/landlords require pay stubs up to 2 years.
• At least 4 years recommended: Align with IRS record-keeping requirements for tax returns.
• Keep longer for peace of mind: Provides income verification for future needs.

A pay stub and a paycheck are connected but distinct.

A paycheck is a physical or digital document a company sends to an employee after each paid month. The salary contains the employee's gross pay, the amount removed for taxes and other expenditures, and the employee's net pay. The paycheck possesses the employee's name, the name and address of the business, and the pay period for which the compensation is given.

On the contrary, a pay stub is a record that shows the employee's take-home pay subsequent to all reductions and taxes that have been taken out. It is usually connected to a paper or digital paycheck and contains a thorough record of how an employee's salary was computed. The pay stub is able to supply year-to-date earnings and deduction totals, as well as additional data like vacation or sick leave.

For more details visit the Difference between Paystub vs Paycheck.

• Check Stub (less common but still somewhat understood)
• Paycheck Stub (common variation emphasizing the connection to paycheck)
• Payroll Stub (highlights the link to payroll process)
• Earnings Statement (more formal and descriptive)
• Wage Statement (focuses on wages rather than all earnings)
• Earning Slip (informal)
• Compensation Statement (formal, emphasizes total compensation)
• Payslip (common in British English and some other countries)