What Does A Pay Stub Look Like?
If you have just landed your first job or are new to business, the intricate world of pay stubs may be a whole new ball game for you. Pay stubs are more than just a slip of paper that you receive along with your check. They are an important record for both employee and employer alike and should be kept for at least two years. So it makes sense to ask, “What does a pay stub look like?”
Information that should appear on a pay stub
Here is an example of a pay stub, or you can use one of your own for comparison. You will see that it contains quite a lot of information. Let's have a look at what all those figures mean. While each employer’s pay stubs will look different, there are certain things which must be included by law.
Your pay stub should have the following information on it if you earn a salary:
- Your employer’s address
- Company name
- Your name
- Your employee number or the last four digits of your social security number
- The start and end date of the relevant pay period
- A description of each deduction
- Gross earnings
- the total amount you earn before deductions
- The total amount of deductions
- Net earnings
- the amount you actually receive (Gross – deductions)
- Year to date total of your gross salary, deductions, and net salary
What does a pay stub look like for an hourly paid worker?
If you get paid per hour, your pay stub should also include the following information:
- The rate per hour for both regular and overtime work
- The number of hours worked at each rate
- The total amount due for each pay rate
By now you will have noticed that it only makes sense to start planning your budget once you have seen the reality of your net pay versus your gross pay. Those deductions sure add up, but also have their benefits.
Nobody likes having money taken from their wages or salary. Ensure you know exactly where your hard-earned cash is going. Tax is a necessary evil. It helps to keep our state and nation’s economy healthy. It provides us with all those things we take for granted, such as infrastructure and public services. Each state has different levels of taxes. You can look them up here if you want to make sure you are paying the correct rate.
Apart from Federal Income Tax and State Income Tax, it is likely that you will also see deductions for social security tax (FICA) and State Disability Insurance (SDI). You may have authorized deductions such as Pension fund deductions (IRA or 401K), Medicare deductions, and insurance. There may even be a garnishment deducted due to a previous judgement against you regarding money owed.
Creating your own pay stubs
As an employer, you may find this all a little overwhelming, try our quick and easy online pay stub generator to create your own pay stubs in 3 steps.