A PayStub/Paycheque stub/ Payslip or Salary slip are different names for the same thing and are most often used interchangeably. It’s a document given by your employer that specify how much you get paid. You will receive one for each pay period. It shows your total earnings for the pay period, deductions from the total, and your net pay after deductions.
You pay stub must include:
- Employer name, Employee name, Function, date of employment, part-time percentage, hours, period, annual wages, pay rate. While it may seem incidental but it is important to ensure all the information relevant to your employer and you is accurate and clear on the pay stub.
- Bruto pay. Your full pay before any tax or mandatory deductions has been taken off. It’s the same amount as on your employment contract. This is your base income.
- Tax deductions (income taxes, social security, Medicare, national insurance)
- Other deductions (pensions, holiday pay, etc.)
- Your net salary. The total amount of take-home pay after deductions.
When starting a new job it’s always a good idea to check your first pay cheque to check if all the deductions are correct. It’s also important to keep your pay cheque in a safe place because you might need them later. It’s a good idea to keep record of all your earnings and tax payments in case there’s a problem and you need to check old details. Your pay cheque is as well an evidence of earnings. For some financial products such as loans you might be asked to show your pay cheque to prove your earnings are sufficient to support the costs. In addition, potential new employers may use your old pay cheques as a reference for offered salary.
Sources: www.deskera.com www.thebalancecareers.com www.moneyadviceservice.org.uk