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. Every employee should have a pay slip. The pay stub is to help with any inconvenience that may occur. When there is a challenge the pay stub will help explain it. You are therefore supposed to know what the pay slip is all about. Here are the essential things that are included in a pay stub and why you should know them.
An important thing that should be in the pay slip and you are required to know about them is the gross income. Gross wages is the total amount that you are supposed to pay the workers without deducting anything. The total amount is the amount that you and your employer agreed on before you employed him. As you put the gross salary remember to input the date and time.
The withholdings are other essential things that should be included in the pay slip. Withholdings include the tax payments, any deductions and any different kind of contributions that the employers have made within that period. You are supposed to know the news about the taxes so that you will be on the right track when paying the workers. You are supposed to consider the workers who go for long distances and give them a place to stay. But you cannot provide them for free. Since they may not have money to pay the rent then you should deduct them from their salary. You may also offer the employees insurance on their health. This is where the deductions get in to be included in the pay slip.
The last part that should be in the pay stub and you should know it is the net pay. This is the part where you take the gross wages and subtract the withholdings. Therefore the amount that is left after making these subtractions is the one to be included in the cheque. If you are not paying your employees with the cheque then you should know what you are to pay them.
You will be required to show your pay slip whenever you want to apply something like a loan. What you are earning will give the lenders assurance of getting back their money. Therefore there are many reasons for producing a pay slip for your employers.