A pay stub is an essential document that employers provide to their employees at the end of each pay period. Companies are required to give pay stubs to their employees every time they pay them. This makes things easier for both the employee and employer in times of checking certain things. If you plan on making pay stubs for your company, you should use a paystub generator. Below are the information every pay stub must-have.

Number of Working Days and Hours

A pay stub can be used to track how many days and hours the employee worked. It includes the total number of working days in a month, usually 22 or 23 depending on the number of days. The ending date on each paycheck may vary depending on where you work. Some businesses may also include overtime information so that the employees can be paid for their extra hours.

Amount of Earnings

A paycheck stub provides the net amount earned after deductions. It will also show an itemized list with any additional earnings that were provided (overtime pay). The gross income (how much is earned before payroll deductions) is also included. The gross income of a paycheck stub consists of the pre-tax earnings from an employee’s regular, overtime, and bonus paychecks. The net income will show how much an employee received.

Tax Deductions

Paycheck stubs include the taxes that are deducted from an employee’s paycheck. These deductions can be federal income tax, Social Security (FICA), and Medicare taxes. Some companies also offer state unemployment insurance or state disability insurance contributions to their employees at no cost. The deduction information will show how much money is taken out of the employee’s paycheck for taxes.

Employees’ Benefits

A pay stub may include information about the employer’s benefit options, retirement plans, and insurance coverage that employees have access to. Some employers will list any benefits offered in a paycheck stub so that their employees know what medical or other insurance packages are available to them. The deductions made for benefits will be shown on the paycheck stub so an employee can know how much money is taken out of their earnings to put toward insurance premiums, retirement contributions, or other benefit plans.

Employer ID Number and Code

The employer’s ID number and code can be found on a pay stub. Each company has its own individualized information that they include within the paystub, so this is where an employee would find all of the necessary information to file taxes with each paycheck correctly. The employer’s ID number and code is significant because this can make things easier for employees at tax time. Suppose they receive multiple paychecks from different companies during the year. In that case, it will be easier to file taxes if all of their information is listed on each stub under a single employer’s number and code.

It’s important to understand what information is needed in a pay stub. This will help you identify mistakes on the payroll and make sure your employees are paid correctly for their work. Pay stubs can be filled out by hand or with an online calculator. If it’s your first time making one, it is best to use a pay stub generator to make things easier.