Pay Stubs: Special Requirements Your Business Must Follow if You Pay Employees Electronically

electronic pay stubs for paperless paycheckWhat happens to pay stubs in a paperless world?

Most employers are shifting to electronic payroll options like direct deposits or pay cards. Physical paychecks are going the direction of the dinosaurs.

What does the law require your company to do with pay stubs when you use electronic systems to pay employees?

Guidelines for electronic pay stubs:

In general, employers do not have to give their employees printed pay stubs.

You do have to give your employees an itemized statement showing:

  • What they were paid for (hours or days worked)
  • Their pay rate
  • Gross wages
  • All deductions taken during that pay period

Pay stubs can be entirely digital as long as you provide them to employees on the day they’re paid.

What happens when employees can’t access electronic pay stubs?

Some workers cannot access electronic pay stubs either at work or at home. Employers are required to make exceptions for them.

In these circumstances, you must give the employee a written statement on payday.

Pay stub rules vary by state:

This may seem like common sense to you, but this rule applies in only 11 out of 50 states. So if you have employees in other states, make sure to check the laws there!

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