Do you have workers that you are supposed to pay? You need to know what you are supposed to pay them correctly. For this to work out you will need to have the record of pay stubs for every employee. The pay slip will help whenever there are a misunderstanding. It will be as the proof to solve the problem. You are therefore supposed to know what the pay slip is all about. Below are the critical things that should be in the pay slip and the reason for understanding them.
An important thing that should be in the pay slip and you are required to know about them is the gross income. The total money that you are to pay the workers is the gross salary. The total amount is the amount that you and your employer agreed on before you employed him. As you put the gross salary remember to input the date and time.
The next important thing that should be in the pay slip and why you are supposed to know them is the withholdings. The examples of the withholdings are taxes, deductions and if you have done any charity in that time. Make sure that you know any changes made about the tax payments so that you can include the right calculations in the pay stub. You are supposed to consider the workers who go for long distances and give them a place to stay. But you cannot provide them for free. You will find that as they work before you pay them, they will not have enough money to pay you as the rent, therefore, deducting the money from their salary. Health insurance is something that you will find important to give to your workers. Therefore you have to include these deductions in the pay slip. Learn more about What does a pay stub include here!
The last part that should be in the pay stub and you should know it is the net pay. This is the part where you take the gross wages and subtract the withholdings. The total amount that you are left with after the subtractions is the right amount that should be included in the cheque. If you are paying using cash then you will know the right amount to pay them. Visit this website at http://www.dictionary.com/browse/taxes for more info about tax.
The reason why the pay stub is important is that you can be asked to produce it in various areas such as when you want a loan. What's included on a pay stub will give the lenders assurance of getting back their money. Those are some of the reasons for having payslips for your employees.