On : My Experience Explained
A business can implement several strategies to boost their growth and success. You can, however, increase the growth of your business by taking care of your workers. One way to care for your employees is giving them accurate information on their pay. With almost all employees getting their pay through direct deposit, complacency can arise from both parties on payment of stubs, and the necessary information.
It would be of great benefit to you as the employer, the employees, as well as the business by clearly understanding a pay stub. While this understanding makes the process smoother when an employee leaves, it will also be easier to identify potential mistakes. This will help you avoid getting into trouble with employees and IRS.
The first thing is to understand what is a pay stub. A pay stub will act as proof of payment to a worker. It will also itemize employee’s payment for the particular period and the total for that year to date. A pay stub will also indicate deductions taken from a worker like tax. You will also be able to see net pay which is what the employee will take home. A pay stub could also be paper and electronic depending on the requirements of your state.
There is also be information for both the employer and the worker. For an employee, a pay stub becomes the record for the wages. An employee can use the information contained in a pay stub to ensure they received correct payment while understanding their deductions.
In the case of an employer, a pay stub would be useful in securing a loan or during compensation claim. A good record of pay stubs would make it easier for the employer when resolving pay discrepancies. Pay stubs should, however, contain certain information.
Some of the mandatory information on a pay stub include gross pay, net pay, taxes, deductions, as well as contributions. The amount paid to an employee before deductions is the gross pay. Gross pay will, however, be calculated differently based on whether the employee receives a yearly salary or paid hourly.
For employees paid on hourly rate, their pay stub will include hours worked. With such information, employees ensure accurate payment for hours worked. Even salaried workers can have the number of hours appearing on their pay stubs.
For a non-exempt worker, their working hours may be different which can include regular hours, overtime, as well as double time. However, their pay stubs should indicate hours worked on separate line to eliminate confusion.
The Ultimate Guide to
What You Should Know About This Year