How are you supposed to understand your paystub if it’s not clear what’s on it? The specific details vary from state to state, but the general rules of thumb are pretty much the same in California as they are in every other state in the country. These steps will help you write better paystubs in California because you deserve a paycheck that you can actually understand!
What are California Pay Stubs?
California pay stubs are a way for an employer to tell their employees how much they have been paid. While federal tax laws require employers in California and other states to provide an employee with a W-2 form by January 31, 2019, California law requires that pay stubs be provided at least twice a month: on or before payday and two weeks after payday. If you’re looking for more information about writing better paystubs, check out our online-paystub. California paystub generator will create accurate California pay stubs automatically – no matter what industry your company is in.
1. Prepare upfront.
The CA state of pay stub template asks for quite a lot of information, and it’s not all that intuitive.
Make sure you understand what it’s asking for—and have your information ready.
As an example –
You will need your employee’s social security number on hand before you start writing their paycheck stub if you want them to be eligible for benefits at any point during employment.
This can be difficult if employees have just been hired or are still working through training periods, but your compliance department will let you know if there are other ways around this requirement should it come up.
2. Create a data sheet.
If you’re dealing with California pay stubs created by California paystub generator, it’s good practice to have a data sheet of all your paystub information on hand.
Having one handy will make it easier for you to fill out payroll reports and can even streamline your tax filing process.
In addition, you’ll never again have to wonder what each field represents (even if you use software). If your business operates nationwide or only in California, make sure that your software includes extra fields for local taxes and deductions. It will save time when tax season rolls around.
3. Transfer the data to the employee’s paystub.
California law requires employers who have hourly employees or non-exempt salaried employees, to provide pay stubs that include their wages and all applicable taxes.
While California law doesn’t mandate a specific format for pay stubs, it does require that they include certain information:
- Your hours worked
- Your gross wages
- State of pay stub
- Federal deductions (like taxes)
- Voluntary deductions (like health insurance or retirement plan contributions).
You must also show whether you are paid by piece rate or commission. Finally, if you have unpaid meal periods and rest breaks, you need to note that on your pay stub as well.
Employees who get paid by direct deposit should receive a copy of their deposit statement with their pay stubs.
4. Approve, print, and mail the paystub.
Employees are required by California law to receive pay stubs by using California paystub generator within a certain timeframe after they’ve worked.
By printing your employees’ pay stubs with the help of California paystub generator daily, you can ensure that they get their salary in a timely manner and avoid any penalties associated with not providing them.
In addition, you’ll be keeping all of your employee records organized and up-to-date.
Having accurate records will also make it easier for you to prepare taxes at tax time – and as we all know, paying less tax is always beneficial.
5. Give the employee a draft.
Although every state is different, there are a few common characteristics that should always be included on a pay stub.
For example, taxes withheld, hours worked and hourly wage should all be visible on your California pay stub at all times.
One of the most important legal requirements that companies need to keep up with, as California employers, is to issue correct paystubs generated by California paystub generator to each and every employee on their payroll. With so many laws in place in the state, it can seem overwhelming to understand how to produce these stubs properly. That’s why we’ve created an easy-to-use pay stub generator for our customers in California!