Understanding online pay stubs
The world as we know it has completely changed with the rise in interactive technology and it has led to numerous technological advancements in the major employee paystub generator software. In recent times, online pay stubs have been extremely popular, as it is more cost-effective and practical than mailing them to employees or handing out pay stubs. Companies can simply mail notifications to each employee whenever a pay stub is generated, and employees can easily login through a secure portal and access their pay stub at their own convenience.
These capabilities have been extremely beneficial for numerous reasons. Companies not only save expenses on paper and mail but also ensure the process is extremely streamlined leading to quicker payrolls and more efficient compensation processes. Online pay stubs can be accessed at any location and it makes the process of finding out the payroll information extremely simple. With various online paystub generator software employees can access and manage their pay stubs at any point of time and do not have to worry about losing their paper pay stubs anymore.
Elements of an online pay stub
Dates: The important dates that are mentioned on any pay stub include the period start and period end date and also the date of issuance for the respective pay stub. Some sections might also include a year-to-date section to display how much a particular employee was paid or the amount of deductions that have taken place.
Personal Info: This section mostly entails the company’s basic information like name, address, and in some cases the social security number as well.
Taxable Income: The amount of taxable income of an employee is specified in this section of the pay stub for the respective employee.
Net Pay: This column shows the exact amount of money earned by a particular employee in the respective pay stub period after all deductions and benefits are subtracted from the gross pay. This amount will be the same as the amount any employee receives in their bank account through a paycheck or a direct deposit.
Federal Tax: This denotes the income tax that all employees are eligible to pay. The percentage that is withheld is dependent on the income value and also on the information filled in by employees on their W-4 accounts.
State Tax: This is not applicable to everyone, and it depends on which state the employees reside in and the state’s respective tax laws. It is also dependent on the income amount of each employee.
Social Security: This is in accordance with the United States system that provides retirement money. All employees are contributors to the U.S Social Security System based on their gross income and a particular amount of money is deducted. The percentage, however, remains the same for all employees.
Medicare: Medicare provides medical benefits to all employees who are over 65 years old, retired, or disabled. Like the social security benefits, the Medicare amount is deducted based on a percentage of the employee’s gross income.
Some other inclusions in online paystubs might include insurance or medical benefit deductions, health savings account deductions, and retirement savings deductions. Hopefully, the guide has helped you understand your online pay stub better. It’s highly recommended that you verify your paystubs and check if all the information provided on them is correct before accepting them.