Do you have workers that you are supposed to pay? Then you have to make sure that they are paid the correct sum of money. For this to work out you will need to have the record of pay stubs for every employee. The pay stub is to help with any inconvenience that may occur. It will be as the proof to solve the problem. You should, however, know what the pay slip entails. Below are the critical things that should be in the pay slip and the reason for understanding them.
Gross salary is the first thing that you should include in the pay stub. Gross wages is the total amount that you are supposed to pay the workers without deducting anything. The amount of money that you talked with the workers is the full amount you are to pay them. Therefore you are supposed to put in the gross wages for that particular time and also the date and time.
The withholdings are other essential things that should be included in the pay slip. The examples of the withholdings are taxes, deductions and if you have done any charity in that time. You should follow up the tax fees so that you will be able to know any update for correct payment. You may also give the employers that come from far a place to live. You will not expect them to live in your houses for free. Since they may not have money to pay the rent then you should deduct them from their salary. You may also find that you have health insurance for your employees. 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. When you subtract the gross income with the withholdings you get the net pay. 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.
The reason why the pay stub is important is that you can be asked to produce it in various areas such as when you want a loan. This will help the lenders to know how much you earn and if you will be able to pay them back. You will, therefore, need the pay stubs for many reasons.