Tuesday, May 23, 2017

Is it pay check or paycheck?

A pay cheque, also spelt pay check, is traditionally a paper document (a cheque) issued by an employer to pay an employee for services rendered. In recent times, the physical paycheck has been increasingly replaced by electronic direct deposits to the employee's designated bank account or loaded onto a payroll card. Employees may still receive a pay slip to detail the calculations of the final payment amount.

A payslip, pay stub, paystub, pay advice, or sometimes paycheck stub, is a document an employee receives either as a notice that the direct deposit transaction has gone through, or is attached to the paycheck. Each country has laws as to what must be included on a pay slip, but which would typically include details of the gross wages for the pay period and the taxes and any other deductions the employer is required to make by law; as well as other personal deductions such as retirement plan or pension contributions, insurances, garnishments, or charitable contributions taken out of the gross amount to arrive at the final net amount of the pay, also including the year to date totals in some circumstances.


Can you force an employee to have direct deposit?

Taking care of your employees is your best ticket to success within your small business. And there’s a lot that goes into that. But arguably one of the most important decisions you’ll make with regards to your employees is how you’re going to handle the payroll process.

While almost 100 percent of employees receive their pay through direct deposit, many small businesses still choose to use paper checks for their payroll.

The Fair Labor Standards Act (FLSA) does not require an employer to provide employees with pay stubs, however it does require that employers keep accurate records of hours worked and wages paid to employees.

So before choosing how to go about paying your employees, ensure you’re following state compliance. According to PaperlessPay, these are the requirements by state for the delivery of employee pay information.