A pay stub also referred to as a payslip is a document given to employees every pay period, including information about their net pay, gross pay, tax withholdings and any employee deductions made to their salary.
Pay stubs are generally used for record keeping sake and to ensure employees are being paid accurately. For employers they pay an extra big role in terms of building audit trails for taxes and payroll.
Pay stubs are referred to by different names depending on the country or region. For example, in the UK, this document is called a pay slip.
What goes into a pay stub?
A pay slip’s content can generally be broken down into the following:
- Gross pay
- Net pay
- Deductions made
- Tax withholdings, including, for example, state, federal, medicare and social security.
- Pay period details, including how many hours the employee worked and start to end date. As well as her overall year-to-date earnings.
What goes into a pay stub?
The pay stub plays a big role in communicating all the employee’s pay details to the employees. For the employer, it’s a crucial part of ensuring there’s full transparency regarding any changes made to benefits package, creating an audit trail, and ensuring workers are paid correctly.
These pay slips are generally generated through the employer’s payroll system or software.
Managing pay stubs for a global workforce
Pay stubs’ frequency and content may differ depending on country and region. Companies with global workforces need to be especially wary of these variations. That includes having a global payroll payments system that can answer to these differences in requirements.
A global payroll payment software in this case can help ensure that these pay slips are generated correctly and at the right frequency, regardless of where the employee is located.
Benefits of unified payroll payments
See how Papaya streamlines the complexities of global workforce payments