Employer Laws: Pay Stub Requirements in 2021

Are you up-to-date on employer laws? As a company, knowing what your requirements are is essential.

Pay stubs are pay statements that display every employee’s paycheck details per pay period. They are typically included with physical paychecks.

For companies that use direct deposits, employees access their pay stubs online.

Check out this article to see what pay stub requirements are in 2021.

State Laws

Pay stub laws can differ from state to state. In some states such as Florida and Georgia, employers don’t have to give their employees pay stubs. In this case, it’s up to the employer to decide whether they issue pay stubs.

Other states require paystubs. However, details may vary depending on the state.

In access states such as New York, employers have to provide certain types of pay stubs, either paper or electronic.

In access/print states such as California, employers have to ensure employees who get electronic paycheck stubs can print them easily.

In opt-out states, employers have to get employee permission before changing the way employees receive their pay stubs.

In opt-in states, employers are required to give paper pay stubs unless an employee specifically chooses to get their pay stubs electronically.

What’s on a Pay Stub?

The information on paystubs varies depending on industry requirements and state employment laws.

However, there are items you might expect to see on every pay stub including dates covered, employee details, gross and net wages, deductions, hours worked, and rates paid.

When using an online pay stub creator, there are a few pay stubs templates to select from to ensure you get it right.

How Long to Keep Pay Stubs?

The IRS requires employers to keep copies of employee pay stubs for a minimum of four years.

Even if your employment tax records are kept elsewhere, it’s recommended to hold on to pay stubs for at least three years.

You may be required to keep information that goes beyond what’s included on a pay stub. However, it’s still a good idea to keep a record of each paycheck and payroll period.

Federal Payroll Law

Under federal law, the Fair Labor Standards Act (FLSA) establishes overtime pay eligibility, minimum wage, record keeping, and child labor standards.

The FLSA affects part-time and full-time workers in the private sector as well as federal, state, and local governments.

It requires employers to maintain accurate records of wages paid and hours worked for three years.

Who Is Affected by the FLSA?

The FLSA affects employers whose annual sales exceed $500,000 or who do interstate commerce. Under the FLSA, every employer must keep records for each non-exempt employee.

While the FLSA doesn’t have any requirements for the form of the records, it does require records to include specific identifying information about every worker as well as the number of hours worked and wages paid.

Keep up With Employer Laws

Employer laws are essential to know for companies. When it comes to pay stubs, there are four different types of states that require paystubs to be provided either physically or electronically.

While pay stub information can have some variations, it always includes the payroll period, dates covered, employee details, wages, and deductions.

Keep employee pay stubs for at least four years to fulfill IRS requirements.

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