Description of a Pay Stub.
The slips of papers attached to cheques when a person is being paid for work that he did are known as pay stub. 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. The information contained in the pay stub is very crucial for both the employer and the employee and evidence to issuance of such documents should be kept in a secure place to avoid loss or damage. 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. It is compulsory that information regarding how to reach the employer be included in the pay stub. The pay stub slip should also be able to indicte the name of the organization. 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. Following the various deductions that have been made against the gross income, the net earnings should be determined and the figure included in the pay stub. At the end of the pay stub, the dates detailing the day, month and year should be indicated. The net salary of the employee should also be included in the pay stub.
The pay stub has to take into account factors such as the total summation of income received by people who work on an hourly basis at a given rate of payment. The different modes payments and the rate at which an employee is being paid at per hour are also part of the hourly information needed to be included in the pay stub. 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 employee is able to be shown by his employer that he has been paid all his income in accordance as to how he is supposed to get. 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. To be able to find out the amount of tax that is supposed to be paid by individuals and businesses, the government, also uses the pay stubs.