Not sure what a pay stub is? Here’s everything you need to know in this simple article!
If you’re like most Americans, you get paid through direct deposit.
You should know if…
Keep reading to learn what a pay stub is – and why you want to look at it every time you get paid.
It’s a document that is usually attached to your paycheck. Since you get paid via direct deposit, you may or may not have access to it. That would depend on your state and the laws about pay stub requirements.
All of that turns into your net pay, which is the money you get in your bank account.
At some point in their careers, about half of all workers have had some kind of payroll issue. They have been paid less than they should have, or the money was deposited into the wrong account.
It’s not a huge surprise to find that errors occur because many companies still do payroll by hand on or on outdated systems.
You want to make sure that you can access your pay stub and double-check to see if you’re getting the money earned.
The answer to this question is that it depends on the laws of your state. Your employer should keep a record of your paycheck. It will protect them in case of an IRS or state tax audit.
Despite that possibility, there isn’t a federal law that instructs your employer to produce and maintain payroll records.
States have their own laws, which are broken out into a few categories.
They can use a check stub template to create them – or in some cases, create them by hand.
You’ll want to check with your state’s labor department and with your employer to see what the requirements are.
There is very useful information that you don’t want to miss on your pay stub. This small document tells you whether you are getting paid the correct amount.
When you look at it, you’ll also know if you’re paying the right amount of taxes. Basically, you could be paying too little in taxes and wind up with a huge tax bill in April.