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The Importance of Issuing Paycheck Stubs to Employees Each Pay Period – Part Two

January 8, 2020 Kevin Kenealy importance of issuing paycheck stubs Comments Off on The Importance of Issuing Paycheck Stubs to Employees Each Pay Period – Part Two

State Requirements Regarding Issuing Employee’s Paycheck Stubs

importance of issuing paycheck stubs

Every state has its own requirements for paycheck stubs. As previously stated, not every state is required to give employees any kind of paycheck stub. Some of the states this includes but isn’t limited to is Alabama, Florida, Georgia, Ohio, South Dakota, to name a few. If you are a business owner in any of the listed states above, you still are required to meet the standards put into place by the FLSA requirements, but this does allow for more leniency in terms of information that you put on to your paystubs. Keep in mind, there are few other states that pertain to this list that haven’t been listed.

In states
such as Alaska, Kansas, Nebraska, New York, and South Carolina you need to have
some type of accessibility to pay-check stub details from your workers. This obligation can be fulfilled by
producing and submitting digital salary stubs to workers .In the meantime,
business owners in California, Connecticut, Massachusetts, New Mexico, North
Carolina and in a few others, employers have to provide the physical format of
a pay stub created for their employees. Some companies will still utilize
direct deposit and then mail out the pay stubs for employees to have a physical
copy. In states like Vermont, Minnesota, and Oregon, paycheck stubs have been
introduced, whereas Hawaii is the single country with an opt-in program.

Paycheck Stub Makers: The Best Solution for Employers

Now that we
have established the criteria and the advantages of paychecks. The next evident
problem is how you can produce it. Thousands of free available paycheck stub
creators will be found through a quick google search. However, using free
paycheck services isn’t the greatest of ideas and here is why. Typically, the
bare minimum will be given by free paycheck stub makers. You’ll build your
basic paycheck stubs, but you’ll be alone. Such free services will not
guarantee that the information produced on the stub is in accordance with local
and federal tax laws. Additionally, these free services will not verify that
your pay stubs ‘ information is correct. In order to verify if information is
correct on paystubs produced by these free services, you will most likely need
to hire a CPA, which can be very expensive.

However, there is a solution to each of potential problems, that say you time and money and that is payroll software. As a solution, payroll software usually includes a way to produce a paycheck stub without any inconvenience and allows for employers to maintain an updated bookkeeping record, and the cost is much less than what typical CPA’s will likely charge you. Moreover, payroll keeping software also safeguards you in terms laws and compliances.   


The Importance of Issuing Paycheck Stubs to Employees Each Pay Period – Part One

January 7, 2020 Kevin Kenealy importance of issuing paycheck stubs Comments Off on The Importance of Issuing Paycheck Stubs to Employees Each Pay Period – Part One ,

A paystub can be explained as documentation that contains all the details regarding an employee’s pay for a pay period. The information included on this document are the earned wages, gross wages, yearly wages accrued, taxes and deductions. Additionally, each paystub has net earnings, meaning how much an employee has earned after taxes and deductions. Depending on the place of employment, an employee can receive this through an attached document with a physical paycheck, through the mail, or in some cases through paperless measures in a digital format from payroll processing software.

Is it required to give employees paycheck stubs?

It’s good to have a record, but why does it have to be done? ⠀While federal legislation does not mandate paycheck stubs to be issued, many states legally force businesses to give pay stubs to their workers. However, the information required to be on a paycheck stub differs from state to state, but the information is generally the same in terms of requirements.

Are there any advantages for business owners for giving
employees paycheck stubs?

The Importance of Issuing Paycheck Stubs to Employees Each Pay Period - The Payroll Company 505-944-0105
The Importance of Issuing Paycheck Stubs to Employees Each Pay Period – The Payroll Company 505-944-0105

Although not all states in the US require employers to give employees pay stubs, there are many reasons that employers should still do so for many reasons. One of the primary reasons to give your employees paystubs is because of the Fair Labor Standards Act (FLSA). The FLSA is a requirement for employees to report correctly and up to date all working hours and all wages paid to each employee. The most effective and simplest way to maintain these legally required records are pay stubs

In addition, another purpose you would like to send stubs for paycheck is for tax purposes. The very last task you want to do when the end of year and tax seasons arrive, is to begin the sorting of all pay information for each employee for the year. Utilizing pay stubs is a convenient way of keeping all the data on tax filing in a single, easy-to-access spot.

Finally, paycheck stubs support organizational transparency. All employees have the right of knowledge for their earnings, and stubs are indeed a simple and straightforward way of maintaining record of all this material. You keep communication channels clear and consistent to your workers by offering basic record keeping devices, which all employees appreciate. Paycheck stubs encourage honesty and accountability and foster a more friendly relationship between workers.


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