What are the Legal Obligations for Having a Paystub?
Employers in the United States have certain legal obligations to provide employees with paystubs. The specific requirements may vary depending on the state and federal laws, but here are some general guidelines:
1. Wage and hour information: Paystubs should include the employee's gross wages, any deductions or withholdings, and the net pay. The paystub should also show the pay period and the date of payment.
2. Taxes: Paystubs should show the amount of federal, state, and local taxes withheld from the employee's pay, as well as Social Security and Medicare taxes.
3. Benefits: If the employer provides benefits, such as health insurance or retirement plans, the paystub should show the amount of employee contributions and employer contributions.
4. Hours worked: In some states, paystubs must show the number of hours worked by the employee during the pay period.
5. Overtime: If the employee worked overtime, the paystub should show the regular rate of pay, the overtime rate, and the number of overtime hours worked.
In addition to providing paystubs to employees, employers may also be required to keep records of employee pay and hours worked for a certain period of time, typically two to seven years, depending on the state and federal laws.
Failing to provide paystubs or keeping accurate records of employee pay and hours worked can result in penalties and legal consequences for employers.