Maybe you are an employer that need to pay the employees after their work. You need to know what you are supposed to pay them correctly. For this to work out you will need to have the record of pay stubs for every employee. Due to any problem that may arise the payslip will guide you. It will be as the proof to solve the problem. You should, however, know what the pay slip entails. Here are the essential things that are included in a pay stub and why you should know them.
Gross salary is the first thing that you should include in the pay stub. Gross wages is the total amount that you are supposed to pay the workers without deducting anything. The amount that you told your workers that you would pay them is the total amount. You should include the gross income of your worker and also put in the dates.
The withholdings are other essential things that should be included in the pay slip. The examples of the withholdings are taxes, deductions and if you have done any charity in that time. You should follow up the tax fees so that you will be able to know any update for correct payment. Giving your employee’s accommodation to those who come from far is essential. There is some money that they are supposed to pay you as the rent. You will find that as they work before you pay them, they will not have enough money to pay you as the rent, therefore, deducting the money from their salary. You may also find that you have health insurance for your employees. Here is where you include these deductions when making the pay stub.
The most important element that should be available in the pay slip and you are supposed to know about is the net pay. When you subtract the gross income with the withholdings you get the net pay. The total amount that you are left with after the subtractions is the right amount that should be included in the cheque. If you are paying using cash then you will know the right amount to pay them.
The reason why the pay stub is important is that you can be asked to produce it in various areas such as when you want a loan. What you are earning will give the lenders assurance of getting back their money. You will, therefore, need the pay stubs for many reasons.