What Is Payroll Automation
Payroll automation is a system that payroll professionals use in order to save on time and expenses. Payroll automation basically is in place to save on time and effort when preparing payroll. The automation payroll process reduces errors that can occur on an individual’s paycheck and it helps companies save a great deal of money. The automated payroll process reduces the cost of payroll by 80 percent. With the advancement of technology, the payroll process has been changing drastically. The company the Hackett Group did a study and the study showed that around 90 percent of companies were using paperless payroll distribution and were providing most of their employees pay through direct deposit. The study also showed that another 58 percent of employees were offering self-service features so the employees could enter their own personal information into the automated payroll system. When a company has payroll automation it automatically comes with a pay stub generator service as well. Payroll outsourcing companies in Sri Lanka can provide more information on this.
What Is A Pay Stub
There are multiple different ways that an individual can receive a pay stub. If an employee gets paid via direct deposit they will be given their pay stub separately either on paper or electronically. The pay stub shows the employees earnings for the pay period and for the year to date also. If a company pays its employees with paper checks the pay is usually attached to the check. It does not matter if the employee gets direct deposit or a paper check the pay stub will be provided. There is a lot of different information that is displayed on a pay check stub and it includes the employee’s salary, garnishments, and taxes. The pay stub also shows social security contributions and any type of health insurance. The pay stub generally just shows the employee where their money is being dispersed.
What Are The Contents Of A Pay Stub
The information that is displayed on a pay stub is divided into three different categories. These categories are payment details, employee information, and company information.
The company information that is displayed is very generic it is just the companies name and address.
The employee information section will contain the employee’s full name, social security information, and employee ID number. The employee’s address is also displayed on the paycheck stub.
The payment details that are provided on the paycheck stub are the check number, pay period and pay date, deductions, and amounts and types of income.
The check number is just the number of the check that was issued to the employee. The check number is very important because if a check needs to be canceled it can be tracked down.
The pay period section is just very generic information that provides the beginning date and the end date of a pay period. You can also find the date of when the paycheck was issued in the pay period section as well.
In the amounts and types of income section of a paycheck stub, you can find the following information such as hours worked this includes regular and overtime. You can also find the gross wages and tips if you work in an industry where you are tipped. This section of the check stub also contains the employee’s hourly wages.
The deduction section just shows the employees what deductions are taken out of their payroll.
The Types Of Pay Stubs Offered By Pay Stub Companies
There are a few different types of pay stubs that are offered by pay stub companies and they are a detailed check stub, easy paycheck stub, and a modern paycheck stub. The detailed paycheck stub is a more advanced stub and it is more detailed. The easy paycheck stub is usually used by small companies and it is very easy to read and understand. The modern paycheck stub is the most frequently used and just provides all the standard information on the stub.