Payroll stubs summarize hours worked, pay rate, and withholdings. They should be kept until a file is turned in annually and destroyed properly to protect personal information.
Payroll stubs are usually attached to a paycheck summarizing hours worked, pay rate and any withholdings. They are useful for ensuring that the paycheck was calculated correctly and for tracking income and deductions. While each company’s payroll stubs may look different, they should have the same basic information. It should reflect exactly how much is withheld from salary and why. Typical withholdings include state and federal tax payments, Medicare and Social Security (in the US) payments, and contributions made to insurance plans or health savings accounts.
Payroll stubs can also report available sick time or vacation pay, which is valuable because it allows the employee to track available personal or sick time. They also usually contain a log of the year-to-date amount of income and may even state things like time worked at a company or hours worked within a year. A payroll stub will also tell you the amount an employee contributes to a retirement plan, an employer’s matching contributions, health savings account contributions, and insurance premium deductions.
Due to the fact that payroll stubs contain such important information about an employee’s status, pay rate, and deductions, there is often a question people ask about it: how long should they be kept?
Under most circumstances, payroll stubs should be retained until a file is turned in annually. Although employers must give employees a year-end statement by January 31, it is helpful to keep payroll receipts to compare accuracy figures. Most experts recommend keeping tax records for seven years.
It is important to ensure that payroll stubs are disposed of properly by destroying them, as they can easily be used to steal important personal information, including things like social security number and date of birth.
Asset Smart.
Protect your devices with Threat Protection by NordVPN
