![]() The net income, the amount left after deducting taxes and other deductions, is the final figure displayed on the pay stub, representing the employee’s take-home pay. Taxes withheld, including federal income tax and state income tax (if applicable), are listed on the pay stub, along with any other mandatory deductions such as unemployment insurance or workers’ compensation. Deductions, which are subtracted from the gross earnings, can include federal and state income taxes, Social Security and Medicare taxes, healthcare and retirement contributions, and any other voluntary deductions authorized by the employee. ![]() It also shows the number of hours worked during a specific pay period and the hourly rate. Pay stubs are also essential for employers to comply with various labor laws and regulations.Ī pay stub includes key information such as gross earnings, also known as gross wages or gross pay, which represent the total amount an employee earns before withholdings and deductions. They serve as accurate records of total hours worked and total wages earned, helping employees keep track of their income. Pay stubs are documents that provide employees with a detailed breakdown of their earnings and deductions. In this article, we’ll cover the basics of state-by-state pay stub requirements. While many small businesses still choose to use paper checks for their payroll, the cost of issuing a check - $2.01 to $4.00 per check - makes this an expensive payroll option.īut do you have to use paper checks? What are your recordkeeping requirements? And most importantly, what pay stub laws do you need to know about in your state? The remaining employees receive a paper check (3.62%), a payroll card (.99%), or are paid by other methods (2.13%). ![]() More than 93 percent of employee’s wages are received through direct deposit. And there’s a lot that goes into that.īut arguably one of the most important decisions you’ll make with regards to your employees is how you’re going to handle payroll. Taking care of your employees is your best ticket to success within your small business. ![]()
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