Although the Fair Labor Standards Act (FLSA) does not require that you give employees a pay stub, it does mandate that you keep accurate records of employees’ wages and hours worked. Also, many states require that employers supply employees with a pay stub.
However, not all states require pay stubs, and in some cases where it is a requirement there may be a lack of specificity in terms of what information should be included. Therefore, we’ve put together a list of suggested items — which can help you maintain a reliable audit trail and minimize employee inquiries. See the pay stub definitions below.
Pay Date and Pay Period
The pay date is the actual day that the employee gets paid, and the pay period is the length of time that the pay date covers. Let’s say you pay biweekly, with a week lag. The pay period start date for a Feb. 5, 2021, pay date would be Jan. 17, 2021, and the pay period end date would be Jan. 30, 2021.
Gross Wages
This entails all payments made to the employee for the pay period, before any deductions are taken out. Gross wages may include salary, regular hourly wages, overtime wages, double-time wages, holiday pay, vacation pay, commissions, tips, bonuses and expense reimbursements.
Hours Worked
Pay stubs for nonexempt employees — whether hourly or salaried — should reflect the number of hours worked during the pay period.
Pay Rate
For nonexempt hourly employees, this is the regular hourly rate. For nonexempt salaried employees, this is the salary amount that was due for the pay period. If the nonexempt employee worked overtime or double-time, the increased hourly rate should be reflected. For exempt salaried employees, the pay stub can simply show the gross salary amount, as these employees aren’t eligible for overtime or double-time pay.
Pretax and After-Tax Deductions
The employee’s pretax deductions — such as traditional 401(k) contributions and Section 125 health insurance premiums — are subtracted from gross wages before the respective taxes. After-tax deductions — such as Roth 401(k) contributions and wage garnishments — are taken from gross wages after taxes. To simplify reading, pretax deductions and after-tax deductions should be categorized separately on the pay stub.
Taxable Wages
This is the employee’s pay that is subject to taxation, after pretax deductions have been subtracted from the gross wages. It does not include after-tax deductions.
Taxes
This includes federal income tax, Social Security tax, Medicare tax, and applicable state and local taxes that were deducted from the employee’s taxable wages for the pay period.
Year-to-Date Wages and Deductions
Year-to-date wages are the employee’s total earnings so far for the year, and year-to-date deductions are the employee’s total deductions (including taxes) so far for the year. This information is especially important when reconciling employees’ wages and deductions with their W-2.
Paycheck Adjustments
Any adjustments — such as retroactive pay or deductions for overpayment — made to the employee’s wages for the pay period should be revealed on the pay stub.
Net Pay
This is the employee’s take-home pay, after all deductions have been taken out.
Make sure you provide all the necessary information required by law and best practices
Copyright 2024
Why Atlantic Payroll Partners
The biggest payroll companies probably won’t have time for your business. It’s that simple, you’ll be a number. At Atlantic Payroll Partners, you’ll be the opposite. We’ll know more than your name; we’ll know the names of your children and their birthday’s as well. We will know you.
We’ve been helping Florida business by managing their payroll and providing workers' compensation quotes for ten years. We help keep payroll cost affordable by provided transparent PEO payroll quotes that allow you to plan your budget accordingly. Like the big payroll companies, you can manage your payroll and payroll timekeeping with us, while reaping the benefits of PEO risk management.
Thinking about payroll outsourcing can be scary. Make sure you know what to expect from payroll outsourcing providers; to make the best decision for your business. In addition to offering payroll, and workers' comp quote we offer: Human Resource consultations, Accounting services, and benefits such as, 401ks and Healthcare plans.
What You Should Know About the Consolidated Appropriations Act of 2021
What You Should Know About the Consolidated Appropriations Act of 2021
We’re 13 days into 2021 and a lot has already happened. Chances are you haven’t processed the end of 2020. Congress recently pass the Consolidated Appropriations Act of 2021, the CAA is long, really long at over 5,500. We have put together some of the highlights that you need to know when it comes to business, in particular what’s new with the PPP for 2021.
Here are some of the takeaways
- The definition of payroll cost officially includes group life, disability, vision, and dental insurance. The change to the definition is retroactive if you have not applied for forgiveness for PPP1.
- There is a one-page loan forgiveness application for loans valued at $150,000 or less.
- You may request a modification to the original PPP (PPP1) if you did not use the maximum amount of the loan.
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The following expenses can be forgiven:
- Payroll Cost
- Covered mortgage, rent and utility payments
- Covered operation expenditures
- Includes software and cloud computing expenses related to HR and accounting.
- Coverage property damage cost
- Costs related to property damage due to public disturbances that occurred during 2020, not covered by insurance.
- Covered supplier cost
- Payments to a supplier pursuant to a contract/purchase order in effect prior to take out the PPP; if the expenditures were essential to the recipients operations at the time the expenditure was made.
- Covered worker protection expenses
- Cost to pay for PPE and other investments that would make your business compliant with government guidelines related to COVID-19 from March 1, 2020 to the end of the national emergency declaration.
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- The expenses that can be forgiven are retroactive if you have not yet applied for forgiveness for the original PPP.
- You still must spend 60% of the loan on payroll cost to be eligible for forgiveness.
- The CAA recently clarified that business expenses may be deducted even if paid for with a PPP loan that is forgiven & excluded from income.
To apply and receive the new PPP you must have maxed out the original PPP. You must now have fewer than 300 employees and be able to show a 25% decrease in gross receipts in one quarter of 2020 compared to 2019 or a 25% from 2020 compared to 2019.
The CAA as it relates to the Families First Coronavirus Response Act
- The mandate to provide employees with paid sick and, paid family and medical leave for certain reasons related to COVID-10 has expired.
- It is now voluntary.
- You can still provide the leave mentioned in the Families First Coronavirus Response Act to employees. If you provide the leave from FFCRA you the employer will be eligible for tax credit through 3/3/2021.
- If your employee previously used leave in 2020 they are not currently eligible to use it in 2021.
3508EZ PPP Loan Forgiveness Application
See Title III- Continuing the Paycheck Protection Program and other Small Business Support
The above is not intended legal or financial/accounting advice. The summary is not complete and is subject change. For questions you should reach out to your banker/accountant or one of the entities responsible for the PPP, FFCRA, or CAA.
Copyright 2021
Copyright 2024
Why Atlantic Payroll Partners
The biggest payroll companies probably won’t have time for your business. It’s that simple, you’ll be a number. At Atlantic Payroll Partners, you’ll be the opposite. We’ll know more than your name; we’ll know the names of your children and their birthday’s as well. We will know you.
We’ve been helping Florida business by managing their payroll and providing workers' compensation quotes for ten years. We help keep payroll cost affordable by provided transparent PEO payroll quotes that allow you to plan your budget accordingly. Like the big payroll companies, you can manage your payroll and payroll timekeeping with us, while reaping the benefits of PEO risk management.
Thinking about payroll outsourcing can be scary. Make sure you know what to expect from payroll outsourcing providers; to make the best decision for your business. In addition to offering payroll, and workers' comp quote we offer: Human Resource consultations, Accounting services, and benefits such as, 401ks and Healthcare plans.