Paycheck stubs are a written statement that provides information about an employee’s salary for each pay period. This file can also be called a pay stub or pay slip.
If your firm prints out physical paychecks, a paycheck stub is generally an attachment that goes along with the check. On the other hand, employees might need to get their pay stubs via an app or from a portal if their business is using direct deposit.
It is also crucial to note that federal law only requires employers to keep payroll records for their employees in compliance with the Fair Labor Standards Act (FLSA). However, it does not automatically entail that the former should distribute the document to the workers.
25 states require employees to give pay stub access to their employees. You don’t need to worry about pay stubs if you work in the following states:
- Alabama
- Arkansas
- Florida
- Georgia
- Louisiana
- Mississippi
- Ohio
- South Dakota
- Tennessee
Who Needs Pay Check Stub?
Employers still have to generate some form of official pay record for their workers. Fortunately, you can find an array of editable free printable pay stubs online, which you can customize according to the firm’s requirements.
Meanwhile, as an employee, you may be asking yourself if you need to keep your pay stubs, though you’re legally required to do so. Whether you’re self-employed, you need to have a record of the pay that you are receiving every month.
Besides credit history, proof of income is one of the essential requirements when you apply for personal loans or other types of loans. Banks, lenders, and other financial institutions require borrowers to do a background check to ensure that they can repay their debts.
These lenders have a minimum income requirement. Acceptable documentation, which includes tax returns, bank account statements, and paycheck stubs. Those who are self-employed can show their tax return as well as their bank deposits.
Apart from loans, pay stubs are required for major purchases such as homes and cars. Unless you pay for these terms in spot cash, you will need proof that you are capable of fulfilling your financial obligations to the real estate or an auto company.
Even if you’re not planning to take out a loan, it’s still cautious to monitor a tab on exactly how much you are earning each day, week, or month. As a result, if your employer does not provide access to pay stubs, you can create your paystubs via the paystub templates, which are available online.
Paystub Templates
In the online market, there are tons of free printable paycheck stubs available. If you are just looking to record your payment details, go for a basic template that contains a general part of a pay stub.
Essential Parts of a Paycheck Printable Stub
A paycheck stub can contain an employee’s financial records while working at an appropriate firm. The file must be comprehensive enough to provide lenders and other institutions with an overview of your financial capabilities.
- Personal Information: Personal act information and information such as the worker’s name, address, and contact info. Email ID- should be presented in the document. Additionally, you must also print the dates covered in the stub, whether it is professionally paid hourly, daily, weekly, bi-monthly, monthly, or annually.
Your state and federal filing status should be displayed in the paycheck stub as well. If you’re using a free fillable pay stub template, you should look for this section to avoid errors while submitting the document for loan approval or any other financial requests.
- Gross Wages: The employee’s gross wages must be displayed on the file. The term pertains to the amount paid to them before taxes and deductions. It should also encompass overtime pay, paid time off, and payroll advances.
There are different processes when calculating the gross wages of hourly workers and salaried employees. For the former, you will need to multiply the individual’s hourly pay rate by the hours rendered. Pay stubs for hourly employees generally show the number of hours worked.
Calculating the latter, on the other hand, entails dividing their annual salary by the total number of pay periods in a year. It is how you can get their specific gross pay for a single pay period.
- Deductions: Deductions are another part of a basic pay stub. This section includes taxes, voluntary and involuntary contributions, and allowances.
Federal Insurance Contributions Act (FICA)taxes are a government-mandated deduction. The program funds Social Security and Medicare to help the community- particularly retirees, people with disabilities, and children of deceased workers.
Some of the cities and states impose an income tax while others don’t. If your local government requires income tax, you will see an amount deducted from each paycheck labeled “local.”
If your earnings remain constant, you will generally pay the same amount for both state and local income taxes each pay period. While the taxes are government-mandated, contributions come from the company for whom you are working—the most common type of 401(k) contributions.
A 401(K) contribution and other employer-directed programs like employee stock purchase plans (ESPP) benefit the employees. So, you can think of this type of deduction as mandatory savings since the funds will be credited back to you when you resign.
- Net Pay: Net pay is the exact amount that you take home during the paydays. It is recorded on the employee’s stub both for the pay period and cumulatively for the year. You can include information about vacation time if you want it. This will serve as a reminder to the employees how much time they have available for the year. In some states, this is a required field.
Conclusion
If you want to create a pay stub online, then you should visit Online Paystub. Using free printable paycheck stubs eases a lot of work for you and makes it easy to use and work in a presentable manner.
