Ī pay stub serves as a payment receipt for the employer.
Pay stubs also list itemized withholdings for taxes, such as Medicare and Social Security (FICA), and deductions for items like health insurance premiums and employer-sponsored retirement plans. Stubs show an employee’s gross income during a specific pay period, including wages, commissions, bonuses and tips.
What is a pay stub?Ī pay stub is a financial record that shows an employee’s paycheck breakdown. Creating pay stubs manually can be tedious, but any good payroll software or service makes it easy. Pay stubs serve as a receipt of payment of wages and withheld taxes they also provide employees with a breakdown of their pay, including deductions.
If you have employees, it’s crucial to generate pay stubs for each pay period.
