How do pay stubs help employees and employers?

Employers typically provide pay stubs electronically or with physical checks to help employees and employers keep track of payments. Employees can verify that they were paid the correct amount and use pay stubs as proof of income when applying for loans or apartments. Employers use pay stubs to maintain accurate records, ensure compliance with tax laws, and verify employment when necessary.

What information appears on a pay stub?

Each pay stub provides essential information about employee payments. Employee and employer's names and addresses are listed at the top. The main section outlines regular pay, overtime, and any additional earnings, such as bonuses. Pay stubs also list federal, state, and FICA tax deductions, which cover Social Security and Medicare. Finally, the bottom section lists deductions for benefits and shows the total amount paid.

What are state pay stub requirements for employers?

Each state has different rules that employers must follow regarding pay stubs. Some states require you to provide physical copies, while others allow electronic delivery if employees can easily access and print their pay stubs. Some states also specify precisely what information must be included. Employers must check their state's specific requirements to ensure compliance.