Today, most organizations have turned to pay online rather than mailing a check handwritten slip of paper paychecks. This is now feasible due to technological advances in electronic software management employees. Either employer sent their check stubs online via email or maintain a defended log where each employee can register and see their paycheck.
Image Source Google
Electronic advances benefit entrepreneurs and even employees in several ways. Companies save money on mailing and paper costs. Software line-up benefits, salary and compensation process and thus the possibility of errors is reduced.
While this type of software used for the employee, the payroll process has made access easier for salary receipts. Tax and financial information that demands attention to all of us are listed correctly in receipt of a salary! Although the layout of the payment slip varies between companies, they all include the following important information:
Personal information: These include employee name, company name, address and the employee's security number.
Significant Dates: These include the start of the pay period date and the end date. The date of the issuance of the check or slip will also be included. Some of the sections will also contain the 'Year-to-date' column to indicate the amount the employee is paid, the amount withheld and the total amount of deductions made that particular year.
Taxable income: This refers to the amount of money earned during that pay period.
Net pay: This refers to the actual 'take-home' money after all deductions have been made. This matches the amount of your physical payslip or direct pay deposit.
Federal tax: This is usually an income tax that every employee needs to pay. The percentage deducted depends on the amount of income earned by the employee and the information listed on w-4.
State tax: This deduction is not obligatory for everyone. It depends on the state you live and its tax laws.