Description of a Pay Stub.
Pay stubs are paper slips that are normally prepared along with cheques when a person is being paid his salary or wages. 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. Pay stubs have very critical information that is relevant to both the employer and the employee and they should therefore be stored in a place that they will be safe to avoid being damaged or getting misplaced. 2 years is the least amount of period whereby one is required to keep the pay stubs.
The information that is contained in the pay stubs is mostly of explanatory status. The address of the employer must be compulsory included in the pay stub. An organization’s name should also be indicated in the pay stub slip. Every crucial information about the employees such as the last four digits of their social security number and their names should also be part of the pay stub. The pay stub should include all the employees total earnings, which should then be subjected to carefully explained deductions. The net earnings indicated in the pay stab should be preceded by the subtraction of all the deductions from the gross earnings. At the end of the pay stub, the dates detailing the day, month and year should be indicated. They pay stub should also encompass the aggregate income an employee receives from employment having subtracted all the deductions.
The pay stub should comprise of the summation of all the money a person will get by considering a particular rate for those individuals who receive their pay on hourly basis. Another description included is the number of hours that an employee is able to work at the different rates of payment and finally the rate of payment per hour. The various payment modes for employees who volunteer to work more hours outside the working times is also included in the pay stub.
The practice of building the relationship of the employee and the employer to both have faith in each other is built by the use of pay stubs thereby being of significant use. The employer is able to assure the employee that he is being awarded all the earnings that he is entitled to receive. Not a single person can be happy if some money is deducted from his income without them having prior knowledge as to why it was done. Consequently, the government uses the pay stub in calculating the amount of tax people and organizations should pay.