Commissions and bonuses: A pay stub includes any additional payments (besides reimbursements) from the employer to the employee, such as commissions and bonuses.Gross wages: Gross wages are the amount the employee earned for the covered pay period, whether based on an annual salary, an hourly rate, or another arrangement.Here are some items that appear on a pay stub: They also include notes for amounts withheld for items like taxes and employee-elected deductions for health insurance premiums and retirement plans, such as a 401(k) plan. They start with an employee’s total gross pay for the pay period. Pay stubs break down an employee’s income for a given pay period. While employers are not required by federal law to provide employees with pay stubs, they’re an essential part of payroll accounting and are considered a best practice in payroll accounting. Now, pay stubs are usually offered digitally and – for employers that use a paperless payroll or a payroll service – are available online to download when needed. Historically, pay stubs were attached to employees’ physical paychecks, which is how they got their name. It’s also a record of how much was withheld from each employee’s paycheck and for what purpose. Ī pay stub serves as a payment receipt for the employer. Pay stubs also list itemized withholdings for taxes, such as Medicare and Social Security (FICA), and deductions for items like health insurance premiums and employer-sponsored retirement plans. Stubs show an employee’s gross income during a specific pay period, including wages, commissions, bonuses and tips. What is a pay stub?Ī pay stub is a financial record that shows an employee’s paycheck breakdown.
#Paperless employee pay stub software
Creating pay stubs manually can be tedious, but any good payroll software or service makes it easy. Pay stubs serve as a receipt of payment of wages and withheld taxes they also provide employees with a breakdown of their pay, including deductions. If you have employees, it’s crucial to generate pay stubs for each pay period.
#Paperless employee pay stub how to
This article is for business owners who want to better understand pay stubs and how to create them.
While you can manually create a pay stub, payroll services make the task substantially easier.A pay stub includes gross wages, commissions and bonuses, taxes, and health insurance premiums.A pay stub is a financial record that shows the breakdown of an employee’s paycheck.
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