What Does a Pay Stub Look Like

You’ve definitely received pay stubs as an employee, but how do you provide them to your employees as an employer?

What is a pay stub and what does it contain?

The short answer: it’s a document that represents your compensation for services rendered. For example, let’s say you charge $200 for a 50-minute consulting session with a client. On your pay stub, you would pay $200 for that hour of consulting.

You would include that amount on the front of your pay stub.

On the back, you would include your time worked.

You would include on the front how many hours you actually spent with the client, and on the back, you would include your time-clock-watch-inspired “ U.S.A.” stamps.

(If you don’t know what these stamps are, don’t worry – they’re just as good as “non-returnable stamps”, but without the demand for return postage.)

Additionally, you may include in the last line of your pay stub:

Your total profit earned or your net profit.

How do you provide a paystub to employees?

Pay stubs that you provide to the public should look like this:

One line of the pay stub is just for employees. It’s the amount of compensation a person is paid. It’s usually the employee’s name, job title, and wage. The company name, title, & other data like annual salary can be used as well.

This line is usually enough. As an employer, you just fill in the rest of the details on the other lines in the pay stub. They include the salary range, employer identification number, and any other relevant details.

There is also one section for every employee, for example, “Company Name and Address: Pickwick & Frolic Restaurant, 255 N. Harrison St, Bloomington, IN 47402.”

How can employees get their pay stubs online?

Pay stubs can be a valuable document for a lot of different purposes. The ones I’m focused on here are for:

• Ensuring you’re paying the right person for the work they do.
• Following labor laws is an important component of the process.
• Getting your payroll processing contractor or banks to be paid on time
• Getting access to employee paperwork
• Keeping track of your accounting
• Helping employees pay their bills

Another reason for having the pay stubs is for recruiting. If you’re a manager at a facility, you might want to tell an employee they’re going to get a pay raise in a few months. In this scenario, your pay stub might remind them to save more money or prepare for the expense.

In case you didn’t know, Employers in California can request a copy of their employees’ pay stubs.

Pay stubs & offers letters differ in the way they are presented to employees.

The future of the 7-D Form?

The Department of Labor (DOL) recently released a proposal to replace the 7-D Form with a standardized salary history disclosure form.

What Does a Paystub Reveal?

There are several types of pay stubs, but to simplify things, I will focus on one: the W2 form.

For a salaried worker, a pay stub is simply a document containing all the information a potential employer needs to know to determine how much to pay you.

• For example, imagine you earn $20,000 a year at a sales job. On your paycheck stub, you’ll see the tax, income, and Social Security numbers you filled out on your taxes for the year.
• If you are self-employed, you’ll fill out all of the necessary information on your pay stub.
• You’ll also see a line item for state and federal withholding taxes, if applicable.

Related Article: 6 Unbelievable Advantages Of Investing In The Online Paystub Generator