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What Is a Pay Roll Stub? A Guide

Businesswoman Hand Giving Cheque

Did you know that 37% of American workers pay their bills late due to payroll errors? It means about 56 million Americans had to cover overdue fees because of mistakes on their payroll stub.

If you’re a business, you must ensure your employees get proper compensation. To accomplish this task, you must incorporate a pay roll stub into your business.

In this paystub guide, you’ll learn everything you need to know about it and more. Read on and discover its benefits:

What is a Pay Roll Stub? 

A pay roll stub is an attachment your employees receive when they get their paycheck. This document contains information such as:

  • The company’s business name, address, and contact
  • Employee information
  • Beginning and end of the pay period
  • Hours the employee worked
  • Rate per hour
  • Tax deductions

Paystubs also contain extra withholdings like medical or pension contributions. They show the amount an employee earned within the pay period alongside tax deductions.

Are You Required To Provide Pay Stubs For Your Employees?

As you know, payroll provides vital information to both the employer and employee. The question is, is it a required document?

The Fair Labor Standards Act mandates tracking of employees’ hours. However, business owners decide how they do it. Thus, federal law won’t mandate pay roll stubs, but some states require them.

The states with no pay roll stub requirements include:

  • Alabama
  • Arkansas
  • Florida
  • Georgia
  • Louisiana
  • Mississippi
  • Ohio
  • South Dakota
  • Tennessee

Meanwhile, most states like California, Colorado, and Washington require a printed payroll stub.

Why Pay Roll Stub Is Important

Why do most states in the United States oblige employers to provide pay roll stubs? For one, pay stubs can help employees when applying for loans. It serves as proof of employment, meaning they can pay their loan.

Payroll stubs also lessen tracking mistakes or discrepancies on employee paychecks. It can ease error correction and improves accountability.

In cases where the employee questions their paycheck, the paystub can serve as a basis and proof. Paystub guide the conversion between the complaining employee and the employer. As such, pay roll stubs are the best for ironing out misunderstandings.

Creating an Employee Pay Roll Stub

For organizations and businesses employing a few people, you can manually create paystubs. For large organizations, you can use paystub generator software.

Paystub creators offer a 360-degree service for organizations, from calculating tax withholdings and remit payments to reports and more. Eradicate the time and effort normally spent on manually calculating every employee’s tax, deductions, and wages.

Invest in Payroll Generators to Ease Employer Burden

The importance of a pay roll stub in sorting out paycheck-related problems is no joke. If you’re worried about the time and resources it takes to create one, don’t fret. Use payroll generators to lighten the weight of the process.

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