Pay Stubs

[Bonnie]

Just had a call from a client who wants to know if there is a law that employers have to issue some type of pay stub with information about what is being withheld? I've never run across one that does not so wasn't sure if there is a law that demands this. Her daughter recently started working for a new business and they issue a paycheck and are suppose to be withholding taxes but she thinks they are not withholding the correct amount. No way of knowing because there is no pay stub.

[AJsTax]

I have asked this

before in classes and seminars. Also have read in the FAQ pages that there is no requirement in the Federal Fair Labor Standards Act that require the employer to issue pay stubs. BUT I have been told that this is a state by state issue. I have also been told that Ohio does have that reg but have not been able to find the exact one in the ORC.
So each state will be different, but I think most do have that requirement.

[taxmandan]

Not federal law, but state law rules

You need to look at state law. Our state labor laws require that the employee receive a statement that details all withholding from their pay: FICA,income taxes, etc. at the time they receive the paycheck or the direct deposit is made.

[Kram BergGold]

Yes in our state

I was at a conference a few years ago and the point was made that some type of paystub was required.

[JohnH]

If the employer isn't accustomed to providing pay stubs or just doesn't want to do so, then if she tries to hold their feet to the fire she may get her pay stub on a pink sheet of paper.

I'm not saying the employer would be right indoing this, but in today's job environment she may want to think about that before making too many demands, regardless of what rights she may have. Of course, if she doesn't care whether she keeps the job or not, it may not matter to her.

[abctax]

Hmmm

I have always stated that an employer IS required to provide the info as to what is withheld from each paycheck (YTD figures not required). But I have no authority to quote, just years of doing it that way. I agree, it could be a state requirement, or it might be in Circular E....or it could be an urban legend lodged in my mind.

[Y2KEA]

It is required in California.

[ChEAr$]

It is required in California.

and not required in Alabama.

[Davc]

Required in OR.

[dsi]

I would consider a business that doesn't provide such info is probably not on the up-and-up with anything they do. IMHO

[thomtax]

I would consider a business that doesn't provide such info is probably not on the up-and-up with anything they do. IMHO

Everyone to his own prejudices. It's very possible that a small outfit operates with a checking account and there is not a place to put this info on the basic checks they use to operate their business. In fact I know of some that the check register is 80% of their records. They are honest, hard working people and there is no "not on the up-and-up" to it. They just don't feel the need for unnecessary complications when they are not required.

LT

[thomtax]

AR Labor laws do not require a pay stub be issued with the check.

LT

[dsi]

Even in a small business, one can show on a separate piece of paper the various calculations in arriving at a net pay check.

[dsi]

I am a true believer in full disclosure/transparency. This is good practice in preventing problems down the road.

[gkaiseril]

Maybe, but if there is a problem with the year end reports the employee has no way to check the information. Some of the money withheld is the employee's and might not follow the simple calculation of withholding. It is also a good way to show that the worker is an employee and not a subcontractor.

Would you pay for groceries or other items in a store without a detailed receipt or bill.

The information could be as simple as a list and total of the deductions and how the gross pay was computed.