There are many ways to answer the question “What is a pay stub?” as this simple form can mean different to different people.
The most important thing that an electronic pay stub is: is a permanent record of how much you as an employee have earned for all of your hard work during the pay period.
For your employer, it is his way of showing you that you have been properly paid for every hour that you have worked during the pay period.
What is Pay Stub
To answer “What is a pay stub?” we have to check the list of information available with this.
To start with at the top your pay stub is going to identify the company you work for and it will at the same time identify you as an employee of the company.
Should you ever need or want to apply for a loan this information is very important as it is used to prove you have a job?
Next, your online paystubs will show you not only how many hours (regular and overtime) that the company shows you to have been at work.
This should match your time card, however, if it does not your pay stub becomes an important document that can be used to prove that you are not being paid for how many hours you had worked.
You will need both your time card and your pay stub to prove this to your payroll office.
After this you pay stub will list all of the deduction that are being taken out of your gross pay before you get what is left over. This include all of the income taxes you pay including federal and where applicable state, county and city.
Here are again your pay stub is a very important piece of paper, if you are not paying the right amount of taxes, you could be in for a nasty shock on the 15th of April.
You should pay very close attention to all of your deductions to make sure that you are not underpaying or for that matter overpaying your taxes.
Final words, “What are Paperless pay stubs?” the real answer is that for many reasons it is one of the most important documents your employer is ever going to hand you.
As such you should make sure that you keep all of your pay stubs carefully filed away in case there should ever be a problem with your paycheck or your tax filing.
Creating a 1099 Pay Stub Document
While 1099 is technically a regular pay stub it is the form that is most commonly used to show how much you have paid a contract or for hire worker at the end of the year.
Just like any other type of pay stub, a 1099 form must have very specific information on it for it to be used to help file taxes each year.
Without the right details about the person’s pay stub and 1099, they have no way of knowing how much they have earned in the pay period and what their annual income and taxes are.
This can make it very difficult if not impossible for them to file their income taxes. It is your responsibility as an employer to provide anyone that you employ with information.
When you are looking for a very basic pay document, you will need to find one that has space for you to use to list your company name, address, and employer identification number that is given to you for tax purposes.
In general, this should be all of the information that will be required regarding your company, whether you are a corporation or a sole proprietorship.
There will need to be a place for you to list the employee’s name, address, social security number, and employee identification number if you use them. This information is required to provide positive identification of the employee payroll and tax purposes.
Without this information, there is no way to verify that the money is being paid to the right person and that all taxes being collected are being paid to the right accounts.
While you might choose not to list them separately on 1099, a payroll stub template should have a section where you can list each employee’s pre-tax deductions such as medical insurance or 401K retirement deductions. There should also be a section for any miscellaneous post-tax deductions such as union dues or repayment of a company loan.
Finally, on both the 1099 and pay stub template, you will need a section that shows the gross pay for either the pay period or the total for the year. The same applies to all taxes paid and then for the person’s net pay after all taxes have been deducted.