All employees are looking forward to their payday when their payment comes. The payday drives employees to continue their same work repeatedly every month. Employers have multiple options to pay their employees among those paychecks and pay stubs are those, which causes more confusion among the workers.
This article illustrates the differences between Paystubs created using an online ePayStubs Generator and Paychecks in detail. However, before diving into the core topic, let us wind up some basics quickly.
What is a Paycheck?
Just as the name indicates, a paycheck is a kind of check provided by employers or contractors to their workers as a monetary recompense for their work done during the specific pay period. It is a physical paper check given to the employee with the details of the amount to be paid as a salary amount for the hours of work they did during a specific period.
In today’s era, giving a paycheck to workers is an outdated business tradition as businesses moved towards automated payment platforms.
What is a Pay Stub?
A Pay Stub is somehow similar to a paycheck. It contains all the payment or salary records of an employee received or going to receive from employers during the pay period in detail. However, unlike the paycheck, a pay stub can be generated both electronically and physically.
Still, many companies around the world use ePayStubs Generator for creating digital Pay stubs for their employees. Employees use the digital medium to access their pay stubs and examine their pay details.
Details or Information You Can Find In both Paycheck and Pay Stub
Both paycheck and pay stub are similar kinds of documents containing the same information which are mentioned below.
- Payment date: The date when a worker or an employee is going to receive or receive the salary for the work they did during the specific period.
- Address Details: Accurate address information along with the contact details of employers and employees.
- Time-Period of Payment: Contains the full information of how many hours or days an employee worked during the specific pay period.
- Pay Rate: It is a pay scale amount agreed between employer and employee for the work.
- Total Payment: It is the overall pay amount an employee is going to receive or received from the employer for the specific pay period. Both gross pay and net pay amount will be mentioned.
- Details of Deductions: These include the number of tax deductions, pension contributions and so.
All of the above information will be updated or varied periodically, so employees should keep track of those pay stubs and paychecks regularly to avoid any pay-related errors. On the other hand, employers need to track all the changes done to make sure the names, addresses, and pay scales of their workers are mentioned correctly.
Difference Between Pay Stub and Paycheck
Here is what you should know about the differences between a Pay Stub and a Paycheck. Despite being a vital document related to employee payment, both pay stubs and paychecks are not the same. Let us see how a pay stub and paycheck differ from each other.
- A paycheck is an actual check provided by the employer to an employee as payment for the work employee encash to receive money. However, a pay stub is not an actual payment; it is a payment document accompanying the paycheck.
- Employer deposits the paycheck directly to the employee’s account on payday. However, a pay stub can be an e-document created using an online ePayStubs generator for businesses that contains complete pay information along with deductions on the employee’s payment.
Hope this post gives you a clear understanding of how a pay stub differs from a Paycheck. A paycheck is a former mode of payment and a pay stub is a document covering all the pay details of an employee.