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CALIFORNIA BUSINESS JOURNAL
Detail of a payslip

Payslip shows amount of earn with banknotes and coins

What You Need to Know About Pay Stubs

Check out our informative guide on the key elements to understand.

by California Business Journal Editorial Staff
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Pay stub, paycheck stub, pay slip, payroll stub… these all mean the same thing. However, if you’re not sure what that thing is, these words don’t really mean much at all, do they?

A pay stub is something that people can use to get more insight into their pay.

What is a pay stub exactly, and why is it important? Do employees require one? Is it legal not to give them out?

These questions and more are answered below, so keep reading to find out what you need to know about pay stubs and your business today.

What Is a Pay Stub?

Simply put, a pay stub is part of your paycheck that gives you information regarding employee pay. It will itemize the wages you’ve earned over a given period, as well as let you know how much you’ve made so far that year.

You’ll be able to see all of the deductions from your pay on this as well to see what your net pay really is.

Businesses generally give their employees either a printed or electronic form of a pay stub. A person can keep their pay stub as a record of their pay.

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What Does a Pay Stub Tell You?

A typical pay stub is going to include a lot of information about the employee, employer, pay period, and pay rate.

You can look at a pay stub and see how much a person made before taxes and how much they make after deductions, including taxes, are taken out.

You’ll also be able to use a pay stub to see an employee contribution to retirement or pension plans.

State Requirements for Pay Stubs

Not all states have the same specifications for pay stubs. In fact, Georgia and Florida are two states that don’t require employers to give pay stubs at all.

In other states, the requirements for what must be on a pay stub differ. As an employer, it is crucial that you follow the laws of your state.

Opt-out states ask employers to get permission from employees before changing the way they provide pay stubs. Opt-in states ask employers to offer paper pay stubs unless an employee asks for it to be electronic.

Reasons You’d Need a Pay Stub

As an employee, there are reasons that may come up in life where you need to produce a pay stub as proof of how much money you make. Some of these instances include:

  • Applying for a loan
  • Securing housing, such as an apartment
  • Verifying your employment history
  • Proving salary records

If you don’t have a pay stub, you may be thinking that there is a way to create one on your own. Can you make fake pay stubs, and if so, what should you know?

You are allowed to make your own pay stub, especially if your employer doesn’t provide one to you.

It is important to know, however, that using a fake pay stub to apply for certain things is illegal. In these instances, asking an employer to produce one for you is a better option.

Do You Need Payroll Stubs?

Now that you’ve got some insight into “what is a pay stub?” and can figure out if it’s something you need, you may be interested in using them for your business.

The good news is that there are plenty of ways to get started with creating pay stubs for your employees.

Are you looking for more articles like this with tips and tricks on running your business? If so, check out more articles on our website and see what you can find today.

Tags: Answeredemployeesinformationloanpayrollpensionretirementtaxeswhat is a pay stub
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California Business Journal Editorial Staff

California Business Journal Editorial Staff

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California Business Journal | California Business News, California News Media, California business articles | Orange County, Los Angeles, San Diego, Inland Empire, Northern California, San Francisco | Huntington Beach CA 92649 | (949) 648-3815
ALL RIGHTS RESERVED BY CALIFORNIA BUSINESS JOURNAL.
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