The check stub is mainly established for employees who cannot access the direct deposit for every pay day. Organizations issue salaries/wages to their employees at regular intervals in collaboration with their HR department. The HR issues sealed stubs to the processing center or the entire department. Every organization employs a different stub system. There is no defined sample format for a stub to be followed by all organizations or organizations of the same type.
Check stubs are issued to employees according to the nature of the employment. Organizations maintain a separate and unique format for the skilled and unskilled employees, whereas there are some limitations and specifications for the contractual and permanent employees.
Mainly unskilled laborers are hired on wage-based system, while the skilled laborers are hired upon a well-structured remuneration package. This includes various fringe benefits and some deductions from the salary at regular intervals. Usually, there are no deductions from the wages of unskilled laborers.
Check stubs are maintained by the HR personnel in conjunction with the finance department to ensure error free payroll. Stubs of the salaried employees include various deductions on account of withholding federal taxes, social security, Medicare, employee benefit plans, employee share scheme, etc.
These deductions are made directly from the gross amount of salary after which the resulting figure is the net income. This is the total and actual amount an employee takes back home and there are no further deductions. The stub also includes important information related to an employee, such as, name, address, contact number, bank account number and company email address. Besides personal details, it clearly mentions the gross salary for the period and the net income figure after deductions.
Many organizations that offer fringe benefits to senior employees also mention them in detail on their stubs. These fringe benefits include home allowance, fuel at a specific rate, car allowance, annual bonuses, gratuity fund contribution, cell phone allowance and other details. Not all organizations offer these fringe benefits to their employees, but it largely depends on the financial scale of the organization.