A paycheck stub refers to that part of the paycheck which workers may retain after having deposited the paycheck received by them. The usual information contained there is the amount paid, some personal information of the worker for use of the payer, and an ongoing computation of income all over the year or for the entire duration of the worker’s employment. It is most usual for the pay stub to give detailed information of deductions carried towards insurance benefits, taxes, retirement plans, and such like features which could affect the workers’ pay.
Paychecks generally represent the payment that an employer makes to their employees. It works as a system of keeping a check on the records to enable the employer and the employee to perfectly keep a track of the salaries or other benefit paid from time to time. A paycheck stub is a document that is usually attached to the paycheck for giving details about the payment made to the employee. The design and information contained in paychecks may vary with the employer, but certain features are common.
The most common information contained in a paycheck consists of the name of the employee, the Social Security Number of the employee or another identifier given by the employer. It usually has a unique number for each employee for the purpose of keeping internal records, and also the name with the address of the employer. The stubs would also specify the purpose for making the payment, the time for which it is being made, and a break up of the amount, if the worker is getting paid on hourly basis. The paycheck stub can also show the total amount paid over a period of one year or even a longer period.
An important feature of issuing paycheck stubs is to keep the employee informed on the various deductions made for the purpose of taxes. Generally, these will be reflected separately, like state tax, federal tax, retirement plan and health benefit etc. It will also show the deductions made for the month or week for which the employee is getting paid, and also the total deductions made so far for the ongoing year. Apart from keeping the employees informed of the amounts paid and the deduction made, it helps keeping a record for the purpose of paying taxes and other useful information.