Understanding Sample Pay Stub
Do you need to locate a quality sample pay stub, one with all the appropriate categories for reporting income and deduction information? Are you aware of all the categories that must appear on a free blank pay stub template, along with the abbreviations commonly used to identify them? When you need to create pay stubs, there is perhaps no better method than using a free blank pay stub template. There are currently hundreds of online sites where these can be found, with detailed instructions on how to complete the forms and download them to your home or office computer. These blank printable pay stubs can quickly transform what used to be a lengthy and painstaking process into one that takes just a few minutes of your time each pay period, but unless you understand all of the common abbreviations that are used on these forms it can often be difficult to know if the pay stub sample you’ve chosen contains all of the required topics and fields. These abbreviations are what we intend to help you with in this article. Additionally, we will briefly discuss why pay stubs are so important to your employees.
The Sample Pay Stub: A Crucial Document for Your Employees to Have
As an employer, it may seem like an unnecessary hassle to create pay stubs every pay period and issue a copy to each of your employees, but have you ever considered the many reasons why a copy of pay stub is so important? There are, in fact, many instances where an employee may be asked to produce a copy of pay stub. A few of these include:
• To Secure Credit. When trying to secure credit or buy a very expensive item on time, including a house or a car, people are required to show proof of income, along with documentation of how frequently they get paid. And to accomplish this, the only acceptable document is a pay stub sample.
• Do Taxes. At year’s end, a copy of pay stub from each month worked comes in very handy when reconciling one’s tax debt or determining the anticipated refund amount.
• Apply for Financial Assistance. Anytime an individual applies for financial assistance from the city, county, state or federal government, that person is required to verify his or her income status and expenses with a pay stub sample and a copy of each of his or her monthly bills. This holds true when applying for housing assistance, cash aid, food stamps and medical or dental benefits.
Common Abbreviations Found on Blank Printable Pay Stubs
When searching for a free blank pay stub template online, you will almost certainly encounter a range of abbreviations. Many of these will be quite evident in terms of their meaning or definition, while some will be less commonplace and may or may not apply to your situation. Nonetheless, below we have compiled a comprehensive list of abbreviations that may appear on blank printable pay stubs.
• Current. The word current on a pay stub indicates that the earnings and or deductions are for the current pay period.
• Gross/Net. The terms gross and net are widely used in almost every pay stub sample. Gross = a person’s earnings before any deductions have been applied, while Net = the take-home earnings after deductions.
• YTD. When you create pay stubs you must include earnings and deduction information for the current period and “YTD,” which stands for year to date.
• REG/OT. Regardless of the free blank pay stub template you select, the abbreviations REG and OT will be fairly standard and are widely used. REG, or regular hours, are those hours worked before an employee reaches 8 hours in a single day or 40 hours in a week, while OT, or overtime hours, are those hours worked after the regular hours have been surpassed. It is very important that you list these hours separately on the pay stub, because depending on your company policy, overtime hours may be paid at a higher wage rate—usually at one-and-a-half times or double the employee’s usual rate.
• VAC. If an employee takes part or all of his or her vacation time in a given pay period, the pay received (usually at the regular rate) will appear in this section.
• HOL. This abbreviation stands for holiday, and should be used any time an employee works on what would have been a paid holiday. Like OT hours, holiday pay is usually paid at a higher wage rate.
• FICA. In the United States, the abbreviation FICA is very common on blank printable pay stubs. This is a deduction item, or more specifically, the portion an employee pays into Social Security—the Federal Retirement Savings Program.
Depending on where you reside, you may run into other abbreviations, but this should give you a pretty good idea with regard to what to look for when searching for a sample pay stub or a free blank printable pay template to use in your business.