Business owners have a lot to worry about. Everyone who says it is easy to be an owner of a business new or seasoned does not know how much time goes into this, what are the waivers you have to do and how much effort you need to put in to make it successful.
When it comes to a business you need to have inputs and outputs. You need to create something necessary for someone else to succeed. You have to have the right market, you have to have the right niche, you need workers, you need to pay wages or monthly pay, you need to worry about legislation, taxes and so much more. The amount of work and knowledge needed in a business is truly vast.
Every business needs someone to operate it, according to its size and what they deal with. Besides the management, you need other workers as well and to know what your workers do, how much they work, and what they should be paid you need some kind of “documentation” to back it all up. That documentation is pay stubs. If you are looking for pay stubs that are good, easy to understand and easily operated with then try TheBestPaystubs, while we try to explain these in more detail.
1. What it is
When it comes to the pay stubs you can easily define these as a document that has details regarding the paychecks of all of your workers in or for a certain period. What is another thing you need to know is that pay stubs usually accompany a physical paycheck.
What is changed a bit from previous years and usually operation is that we have all gone online and that most of our business is conducted this way. Now most employers offer direct deposits while they are making these pay stubs available electronically. This is done to ease the entire process, make it visible to whom it may concern and make it a bit greener where you cut the entire paper trail and cut down on paper waste.
2. What they do
Most will argue that pay stubs are unimportant and that the paychecks are all that it matters, but we have to say differently. Pay stubs are really important especially to the employees because this is the way that they stay as informed as possible. They will offer them a clear picture of what goes in their paycheck like their wages, all potential deductions and what ends up in their net paycheck.
3. Are they required?
If you look up the Federal law you will see that pay stubs aren’t required but what is interesting is the fact that most states legally require employers to have some sort of document or a pay stub equivalent to inform their workers about everything regarding their pay on time.
4. What it must contain?
A typical pay stub has to have some information on it and the layout differs a bit but the gist of everything is that you will see info about the employer and employee. This is essential and every pay stub must have this. Next, you will see the pay period which will have the beginning and ending period as well as the payment date. Other information includes growing wages or salaries which could include hours you worked and pay rate if they are hourly employees. Another important aspect is tax-related and non-related deductions and obligations.
5. What are your obligations?
When it comes to this you need to know that there are some obligations as an employer.
Besides the obvious ones we already listed like having pay stubs and delivering them with paychecks or at least pay stub equivalent documents, you also need to keep these for certain periods. Now depending on where are you located and from where you operate you need to know that there is a period you must hold on to archived copies of all pay stubs from all employees. To avoid any confusion, we would advise that you inform your government regulation regarding this.
6. There is more
Beyond just pay stubs, you are also required to archive other documents with the pay stubs and those are timesheet data for each employee, all original hiring forms and all relevant tax information provided by employees. These are all the things that have significant legal implications so please be aware of all and any time frames and special regulations when it comes to this.
7. What is the best practice?
When it comes to paying stubs, from those online to those on paper you really should try to implement a few things in your practices. One of those things is on-demand access to these documents. This is good practice for everyone and makes your employees informed in all moments as required by the laws in your state. Another thing that is a good practice move is to make all of your pay stubs and all the details on them easily visible, clear and easy to understand. This is important because not every worker has the same level of understanding and they can easily start to panic if they do not understand or do not know what has happened to their pay at the end of the pay period.
So, employers now and future ones, we hope that we have managed to explain to you what pay stubs are, what they do and how they are used. We hope that with the age of information and progress more and more of you will transfer to electronic pay stubs as a form of informing your workers about their wages, taxes, deductions and other things.
These need to be as advanced as possible, as easy to read and understand as possible so try and find the best service for this if you can. If you are still on regular paper pay stubs, do not despair but keep in mind that the entire process can be made easier and more approachable by your management as well as your workers and the Government if need be.