The salary check will be prepared by the accounts department of the company and will be stored in the computer.Now the task of preparing the salary has become very easy after storing programs and formulas in the system. If you want to explore regarding the check stub maker, visit https://paystubscheck.com/.
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All you have to do is to feed the amount of salary figure and observe any changes to be done about deductions. The computer will automatically give the net salary after making necessary deductions. This article tells you what the elements are mandatory to be shared in the paycheck stub of the employee.
Certain information is vital in the salary check, such as gross pay and your take-home pay. Gross pay can be defined as the total income earned by you and this figure is arrived after adding all the allowances with your basic salary.
For some daily wage employees, the pay period may vary each month and for certain employees, the salary is calculated based on working hours. The period of salary may be weekly, bi-weekly and also monthly depending on your designation.
So, there may be a difference in the gross pay of your salary. But the paycheck stub is written based on the net salary and not the gross income of the employee. On the deductions side, you have various types of deductions such as federal tax deductions, insurance contributions, and 401k pension plan contributions and Medicare contributions.
In addition to the above, some employees may have an outstanding amount of loan repayment. For all employees, a fixed percentage of their salary is deducted towards social security fund contributions. The employer will also make an equal contribution as that of the staff towards pension plan contribution.