Pay stub requirements vary from state to state, so both employers and employees should be aware of them. In this blog post, we have compiled all the information you need to know about pay stub requirements in 2021.
What Are Pay Stubs?
Pay stubs are the records of your earnings and expenses that you get from an employer. These documents will generally list the withheld taxes, how much you received in pay, and when you received the payment.
How Should A Pay Stub Be Filled Out?
Pay stubs list the hours worked and earnings for each pay period. In addition, payroll departments must provide employees with a statement of their gross salaries and net wages every payday.
Pay stub requirements vary by state but typically include:
- Gross earnings;
- Net pay after deductions from taxes or other payments made by the employer such as Social Security, Medicare, or 401(k) contributions;
- Regular Pay; and
- Overtime Pay.
Do Employers Have To Provide Pay Stubs?
Employers have to provide pay stubs in the following cases:
- There is a deduction of payroll taxes from an employee’s wages
- The law requires the employer to keep certain records and data on employees (e.g., Social Security numbers)
- An employee has requested a copy of their payroll information
Unlike W-forms, pay stub requirements in 2021 are more strict, specifically if employees request information about their wages or payroll data. If the employer fails to provide pay stubs in any of these cases, the government can punish them with fines and other penalties.
Cost of Non-Compliance
Local laws determine the consequences and costs of non-compliance. In any case, an employer should let their employees review their pay stubs, even if they are not required to do so.
No Requirement States
Employers are not required to provide employees with a statement of pay information in the following states:
- Alabama
- Arkansas
- Florida
- Georgia
- Louisiana
- Mississippi
- Ohio
- South Dakota
- Tennessee
Access States
Employers in the following states are required to provide employees with a statement summarizing every employee’s pay. However, a physical copy of the pay stub is not needed. Instead, employers can give electronic pay stubs.
- Alaska
- Arizona
- Idaho
- Illinois
- Indiana
- Kansas
- Kentucky
- Maryland
- Michigan
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New-Jersey
- New York
- North Dakota
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Utah
- Virginia
- West Virginia
- Wisconsin
- Wyoming
Access/Print States
These states require employers to provide a pay statement detailing an employee’s compensation. Paystubs are not required to accompany every paycheck. However, employers must ensure employees can print electronic pay stubs.
- Alabama
- Alaska
- Arizona
- California
- Colorado (requires both)
Opt-out States
In states where particular electronic delivery methods are adopted, employee consent is mandatory. On top of that, when an employer in one of these states launches a paperless pay program, each employee must be entitled to opt-out of it if they want to receive paper pay stubs instead.
- Delaware
- Minnesota
- Oregon
Opt-in States
Hawaii requires employers to provide employees with written or printed pay statements detailing their pay information unless they agree to get their invoices electronically.
What Deductions Can Employers Make On Pay Stubs?
Employers may withhold a certain percentage of your payment from your paycheck for payroll taxes and other items governed by the Federal Insurance Contributions Act (FICA), such as Federal income tax and Social Security contributions. You might also see deductions made on the pay stub that you legally authorized or voluntarily authorized.
A legally authorized deduction can include food, lodging, transportation, child support, and alimony. Meanwhile, voluntary deductions may come in charitable contributions or insurance. Voluntary authorized deductions like these are permitted even if your pay drops below minimum wage as a result.
A company, however, cannot deduct expenses that are benefitting them. Furthermore, they cannot retroactively deny or adjust compensation based on poor performance.
FAQs: What If My Employer Doesn’t Give Me A Paystub?
Employees may seek damages from employers for each violation of wage statement if employers do not provide an accurate and complete wage statement or if employers willfully fail to provide one.
Is It Illegal To Use Fake Paystubs For Apartments?
Making fake pay stubs isn’t unlawful; however, providing them as proof of income is. The minute you use them to obtain housing, secure a loan, evade taxes, or avoid paying child support is equivalent to fraud.
How Do I Show Proof Of Income If I Get Paid Cash?
Pay stubs are the most common way to prove income. In addition, paystubs often include your employer’s name and contact number on them, making it easy for employers to verify that they come from a legitimate source.
If you don’t receive a paystub from the person who pays you, you may create your own. You can include necessary information, including the employer’s name, the amount paid, and the type of work you did.
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