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?

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.