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Electronic Pay Stub: Legal Troubles To Avoid

Organizing pay stubs

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As a business owner, you have certain responsibilities to provide your employees with payment information in a timely manner. Not to mention that you need to keep accurate records for yourself as well.

One way to do this is with electronic pay stubs. They’re convenient, easy, fast, and accurate. Simply by uploading payment information for each employee, the pay stubs will generate automatically. This not only saves you time but it also ensures accuracy.

The big question for you as the employer is, “are you required to provide pay stubs to employees”? The answer is a bit more complicated than a simple yes or no. It depends where you live, who you have working for you, and whether or not you operate remotely. All of these factors will impact whether or not you supply your employees with pay stubs.

Are Employers Required to Provide Pay Stubs?

The answer is maybe. To determine whether or not you’re required to provide pay stubs, we need to break this up into federal and state requirements. Here’s an explanation of this:

Federal Pay Stub Requirements

According to the Fair Labor and Standards Act, employers are required to keep accurate records of hours worked and wages paid. Some of the information that is required includes:

  • Wages
  • Overtime pay
  • Pay period
  • Address
  • Employees name
  • Social security number
  • Sex and job tittle
  • Deductions or additions to wages

All of this information is required but pay stubs are not required. As an employer, there is no federal requirement to provide pay stubs no matter how many hours your employees work.

Pay Stub Requirements by State

Things get interesting when it comes to providing pay stubs at the state level. The requirements vary from state to state. Some states require you to provide employees with access to digital pay stubs, some require you to print them out, and others don’t require anything at all.

States that don’t require pay stubs:

  • Alabama
  • Tennessee
  • Arkansas
  • Ohio
  • Florida
  • Georgia
  • Mississippi
  • Louisiana
  • South Dakota

States that require employers to give access to pay stubs:

  • Alaska
  • Arizona
  • Idaho
  • Illinois
  • Indiana
  • Kansas
  • Kentucky
  • Maryland
  • Michigan
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • New York
  • North Dakota
  • Oklahoma
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Utah
  • Virginia
  • West Virginia
  • Wisconsin
  • Wyoming

What Information Should Be in a Pay Stub

Once you decide whether or not you want to provide electronic pay stubs it’s important that you know what information you need to provide.

Basic pay stubs provide only the most important information required such as pay period, wages, and the employee’s name.

PayStubs 365 also offers a traditional pay stub generator which provides a bit more information than the basic pay stub. This includes overtime information, deductions, and more. This is a better option for employees who need more data to apply for loans and things of that nature.

For the maximum amount of information you have an advanced pay stub that contains everything you could need. This information is best for those who might be receiving a larger pay and will be applying for loans with more restrictions.

Final Thoughts

Avoid legal troubles with electronic pay stubs and by understanding federal and state requirements. Using a pay stub generator from PayStubs 365 will ensure you’re providing your employees with all the necessary information based on your individual requirements. Generate pay stubs today with our pay stub generator.

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How Do You Get Started?

Our‌ ‌pay‌ ‌stub‌ ‌generator‌ ‌is‌ ‌easy‌ ‌to‌ ‌use:‌ ‌

1. Select‌ ‌from one of our four templates.
2. Fill‌ ‌in‌ ‌the‌ ‌blanks‌ ‌with‌ ‌the‌ ‌information‌ ‌required.
3. Preview‌ ‌your‌ ‌pay‌ ‌stub,‌ ‌pay,‌ ‌and‌ ‌print.‌