Legal Troubles of Electronic Pay Stubs to Avoid
By Jaden Miller , May 15 2020
Have you decided to go the electronic pay stub route for your business? It's great for the environment since it's paperless and saves you a ton of money. There are some legal troubles of electronic pay stubs you want to keep in mind though.
In this article, you'll learn the legal troubles plus some knowledge and information about electronic pay stubs and how they vary by state. Read on to discover the legal troubles and how to avoid them.
1. Legal Troubles Of Electronic Pay Stubs
When going the electronic pay stub route you'll want to be aware of legal troubles that could come about. Something to keep in mind is not all states require pay stubs since it's not federal law. You're required to keep track of the hours your employee worked, you're not required to give them pay stubs depending on the state you reside in.
Each state has its own laws about requirements for pay stubs. To see state by state pay stub requirements check out this website. It's important to be aware of each state's requirements. Along with the requirements keep in mind some states prefer paper, and employees can opt-out of electronic, always verify your state's requirements.
2. Access Is Important
Does your state not require access to a paystub? If you decide to not offer an electronic pay stub, it's still important to allow your employee access to their pay and work information. This is an important requirement to avoid wage disputes, and it allows employees information requirements for loans and apartments. Find out the rules for giving your employees their pay stubs.
3. All Information Must Be Included
As said earlier pay stub requirements vary by state, so make sure you are aware of the requirements for your state. It's also important the electronic pay stub has all of the information on it that's vital. Here is some necessary information to include:
- Gross earnings, year-to-date earnings, net earnings
- Rate of pay or wage
- Hours worked per period plus start and end dates
- Breakdown of hours worked: overtime, vacation, holiday, regular, etc
- All taxes such as federal and state
- The total amount of deductions taken
- Deductions such as medicare, social security, any wage garnishments, and if there's a pension plan contribution or 401k
Legal problems can seem time-consuming and overwhelming, but take it one step at a time. Remember too that each state's requirements vary, and see what your employee prefers. Check the opt-in and opt-out options in your state and see if your employee has chosen either.
If pay stubs are a requirement for your state, remember electronic pay stubs will save you money, help the environment, and are easy to set up! Now that you've learned the legal troubles of electronic pay stubs and how to avoid them, let's help you create a pay stub hassle-free. It's quite simple!