Definition of pay stubs

What are pay stubs? The document that is filled out when a person receives a payment in exchange for a certain action performed is called a pay stub. A pay stub, on the other hand, can be a list of names or salaries that a person receives for his or her work.

Consequently, the concept of receiving wages is similar to the concept of receiving benefits. It is a document that the employer provides as proof that he has paid the employee the wages in question. In order for this receipt to be valid, the employee must sign a receipt confirming the fact of payment.

Payroll receipts should include a variety of information. The name of the contracting company with its fiscal information (name, address, etc.), the name of the employee, the money listed as wages, and the date are some of the information that is usually included.

 

Digital paystub

In some places, payrolls are digital. This facilitates fiscal control by the authorities since the employee’s wage data is recorded automatically in the system. There are also sites that offer such services so that you don’t have to do it all yourself. You can discover more about this topic right here. 

But it’s not just for this reason that they started getting payroll electronically, but also for other important reasons, such as: 

  • Less paperwork has to be done periodically.
  • This provides significant cost savings on the part of the company, which can reduce your costs for both paper and printer ink.
  • Just as importantly, it ends up being a space problem when storing documents, as in this case the storage is a computer or an additional hard drive if desired.
  • It tends to protect the environment, given that less paper is used, less light is wasted on not using the printer.

The following fundamental aspects must be considered at the time you receive your wage receipts: 

  • It is important that it be done according to the official model that is established in the country where you live.
  • As a rule, the payslip will refer to calendar months. Otherwise, it will be important to accredit it in the most appropriate way.
  • It should also include the method of payment (cash, check, transfer…).

The relevant payroll receipts should be kept by the company that made them for at least five years in order to be able to conduct the various investigations that can be undertaken. 

It is important to note that the payslip is proof of income for the employee. For this reason, many financial institutions request a payroll when a person applies for a loan, as the document can verify how much money the person receives and the ability to pay. The bank granting the loan, when checking your customer’s payroll, can check your ability to pay.

 

Conclusion

The payroll is important for both the employer and the employee. Don’t neglect it, and if you can simplify your work and save time filling out such a statement, try using online pay stubs.

 

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