Description of a Pay Stub.
Pay stubs cab be identified to as the slips of papers that a person being remenerated for the first time is given and they accompany cheques. Those who are new to an organization, for instance, a person who has recently been employed to a firm are most likely to be issued with the pay stub. The information contained in the pay stub is very crucial for both the employer and the employee and evidence to issuance of such documents should be kept in a secure place to avoid loss or damage. A duration of below 2 years is the optimum period whereby individuals are required to keep their pay stubs.
Pay stubs are known to contain a lot of information that is of descriptive nature. It is a must that information regarding employer’s address be included in the pay stub. The pay stub slip should also be able to indicte the name of the organization. All relevant employees’ details such as their name and the last four digits of their social security number should also be attached. The pay stub should include all the employees total earnings, which should then be subjected to carefully explained deductions. After subtracting all the deductions from the gross income, the net earnings received by an employee should then be indicated in the pay stub. The date of peparing the pay stub should finally appear at the end of the document in the form of day, month and year. The net salary of the employee should also be included in the pay stub.
The pay stub has to take into account factors such as the total summation of income received by people who work on an hourly basis at a given rate of payment. Another set of information that ought to be placed in the pay stab for hourly employees includes the various ways which employees are paid and finally the rate of pay per hour that the employee receives. The various classes of payment in regards to employees who voluntary extend their working duties beyond the working hours is also considered when preparing the pay stub.
The levels of honesty between the employer and the employee by eliminating mischief is enabled by the use of pay stubs which serves a vital role in establishing such a relationship. The employer is able to address any concerns raised by the employee by confirming to him that all his earnings have been given to him as required. Any individual is likely to be saddened by the act of subtracting some figures from his earnings without them having being consulted as to why it is being done. The government too, relies on the use of pay stub to determine the amount of tax individuals and businesses have to pay.