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Summary: A paycheck (also pay check or paycheque) is a physical paper check that an employee receives from their employer.
What information is typically included on a paycheck?
A paycheck (also pay check or paycheque) is a physical paper check that an employee receives from their employer. Like most checks, a paycheck includes standard information, including the payor, payee, amount, date, and drawer, which is the bank from which the funds are drawn.
What is the difference between a paycheck and a pay stub?
A paycheck and a pay stub are very different documents. A paycheck is an actual paper check that the payee can take to a bank and use to draw funds. While many employees receive direct deposits these days, paychecks are still used in some instances.
A pay stub, also called a pay statement, is a record of an employee’s pay. It includes the period of work and accompanying salary or wages the employee earned. However, it also calculates the funds the employee was deducted for things like taxes and Social Security. Any added payments like bonuses or incentives will also be shown on the pay stub.
How can employees ensure their paycheck is accurate and understand their deductions?
To ensure a paycheck is accurate, employees should do two things. First, they should keep their own records of the days and hours they work to ensure the employer’s records are accurate. Second, they should read their pay stub and check the totals for salary and deductions. Payroll departments can make mistakes, and it’s best that every employee double-checks every paycheck they receive.
What are the options for receiving a paycheck, and what are the advantages of each?
Employees can receive their pay through three common options, all of which have their own advantages. These options include:
- Paper paychecks: Paper checks are the traditional way employees were paid for decades. Some employees like to receive paper checks that they take to the bank to draw funds, as this helps them keep track of their money.
- Electronic paychecks: Electronic paychecks or transfers have replaced paper paychecks as the most common method of employee payment in modern days. They’re faster and more secure than depositing paper checks.
- Payroll cards: Employers can charge payroll cards, similar to debit cards, with funds for employees who don’t have bank accounts. Payroll cards can be used to withdraw cash only at participating bank machines.
What should employees do if they encounter errors or discrepancies in their paychecks?
If employees think their paychecks are incorrect, they should immediately contact their employer’s payroll department. Checks can be calculated in error, or the employee may misunderstand their deductions, so it’s important to consult payroll calmly to figure out the issue.
How do paychecks differ for salaried versus hourly employees?
Salaried employees typically receive paychecks that don’t differ much from month to month. Hourly employees, however, may see big differences in their paychecks depending on how many hours they worked in different time periods.
Andrew (Drew) joined the Remote People team in 2020 and is currently Director, Regulatory Affairs. For the past 13 years, he has been a trusted advisor to C-Suite executives and government ministers on international compliance and regulatory issues. Drew holds a law degree from the University of Otago, a PhD from the University of Sydney, and is an enrolled Barrister and Solicitor of the High Court of New Zealand.
