Pay Stub Solutions: What Makes a Pay Stub Legal?

Every couple of weeks, most companies issue paychecks to their employees. Over 90 percent of people get those paychecks through a direct deposit system. The other thing that most people get at the same time is pay stubs.

Employees rarely give much thought to their pay stubs beyond making sure the numbers look right. Employers must give considerable more consideration to their pay stub solutions. After all, they must make sure the pay stubs are legal.

Thinking about bringing on some employees? Want to make sure your employee solutions pay stub is legal? Keep reading and we’ll cover what makes them legal.

What Is a Pay Stub?

Pay stubs serve as a record of your financial relationship with an employee for a pay period. In essence, it tells the employee what you paid them for the time they worked during that pay period.

The pay stub also helps protect you from accusations of underpayment. As long as the paystub accurately reflects the information in your timekeeping system, you’re safe.

Are Pay Stubs Required?

Before you get into the details required to create a pay stub, you might wonder if you’re obligated to provide a pay stub. The answer depends on where you operate. The federal government takes no position on whether you must provide a pay stub to your employees.

State governments often take a different stance. Most states do impose a requirement that you provide pay stubs for your employees. This can prove even trickier if you operate in a state that doesn’t require them, but some of your employees live in a state that does.

As a general rule, providing pay stubs proves more practical.

What Makes a Pay Stub Legal?

Unfortunately, since states set the rules for employment solutions pay stubs, there is no definite set of requirements. You must research your state for their requirements. For example, some states simply require that you provide some kind of pay stub, while others might mandate printed stubs.

As a general rule, pay stubs must contain certain information to meet state standards. Some of the commonly required pieces of information include:

• Hours worked
• Taxes withheld
• Total wages
• Net wages
• Pay rate

Your state may mandate more or less information on the stubs, so make sure you get solid information before sending out stubs.

Getting Your Pay Stub Solutions Right

Getting your pay stub solutions right means starting with good information. You must delve into your state laws regarding the information the stubs must contain.

If you cannot find the information or it doesn’t make sense, consult with an employment attorney. They can help you make sense of any regulations on the books.

If you live in a state that doesn’t require pay stubs, providing them is still a good idea. It protects you from accusations of underpaying. It also provides a solid record of your payments to employees.

Looking for more tips that will help your business run smoother financially? Check out our finance articles in the Business section.