An electronic pay stub is essentially the same as a traditional pay stub but it’s available online. Some employers opt to send these pay stubs via email while others have portals where employee data is stored and each employee can access their digital pay stubs there.
Regardless of how you elect to supply pay stubs to your employees, many of them prefer to receive them electronically. Everything is kept safe online, it’s all in one place, and they can access all the pay stubs whenever they need them.
In an increasingly digital world, this is becoming more popular. Employees are doing online banking and managing their finances online, so why wouldn’t they want to receive their pay stubs online as well?
What Is on an Electronic Pay Stub?
Every employee will likely need a pay stub at some point. Pay stubs are used to verify things such as income, taxes paid, and employment verification. This information is required when applying to rent an apartment or get a credit card.
It’s also important for employees to have accurate and comprehensive pay stubs when they do their taxes. Here is some of the information you should have on your traditional electronic pay stub:
Gross Earnings – One of the most important pieces of information is gross earnings. This tells the employee how much they’ve earned before taxes and deductions.
Hours Worked – This tells the employee how many hours they’ve worked during the pay period. Some employers offer overtime pay so this is where it will be determined if the employee worked enough hours to earn overtime pay.
Deductions – It’s important that deductions are clearly marked on pay stubs because it will tell the employee how much they’re paying for taxes, insurance, and any optional deductions they might have. These can include flex spending accounts, health savings accounts, and investments.
Employee Information – The pay stubs should contain the last four of the employees social security number, their name, their position, and any other information about their employment.
Sick Leave/Vacation Time – If the employee had any time off during the pay period, it should be documented on the pay stub.
Some advanced pay stubs may contain additional information about taxes, net pay, marital status, and exemptions.
Are Electronic Pay Stubs Legal?
A lot of employers wonder if using an online pay stub generator is legal and safe and it is. Some states have different laws pertaining to pay stubs though.
For example, Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Ohio, South Dakota, and Tennessee do not require you to provide a hard copy of a pay stub. States like California, Colorado, Connecticut, Iowa, Maine, Massachusetts, New Mexico, North Carolina, Texas, Vermont, and Washington require you to receive consent from your employees before issuing electronic pay stubs.
Final Thoughts: Embrace Electronic Pay Stubs
Electronic pay stubs are a great way to help the environment by using less paper. Best of all, many employees prefer them so it’s a win-win situation. Depending on the state you operate in, you may be able to change to electronic pay stubs right away. Generate pay stubs today with our pay stub generator!