Virginia law requires employers to provide all employees with paystubs. Not just hourly workers, but salaried workers as well. You do NOT have to provide paystubs to independent contractors since they are responsible for their own record-keeping.
Does the paystub have to be electronic?
No, Virginia law says the paystub can be either written OR electronic. Electronic paystubs are just easier to provide today. What is important is that you, the employer, and your employee have an express record of payment.
What has to be included in the paystubs?
- Employer’s name and address.
- For hourly workers you must include the number of hours worked in the pay period.
- Pay rate (hourly or salary).
- Gross wages earned during the pay period
- Deductions from wages, with an explanation for each deduction. As in you must list how much is deducted and why (taxes, insurance, garnishments, etc.)
- Net pay earned during that pay period.
Essentially, the paystub must include the gross pay, the net pay, and everything that caused the difference.
However, these are just the base requirements. Some states have additional requirements. For example, Connecticut required paystubs to include paid sick leave balances. Nonetheless, our payroll services can create the paystubs you and your employees need.
Why are paystubs so important?
Paystubs are a vital legal protection for both you and your employees. They provide wage transparency. The idea is for the employee to easily verify hours, rates, and earnings. So if they notice any errors they can immediately act to resolve it.
What happens if there is a discrepancy within a paystub?
If an employee finds a discrepancy within their paystub, they should immediately notify the employer. They should do so in writing so they can keep a copy in case they need to take legal action.
The employer must investigate any and all discrepancies. So you should review your payroll records to find the source of the error. Once you do, you must communicate the finding to the employee.
Here at Capital Payroll Partners, we investigate reported discrepancies promptly. And once we find the source of the error, we work to fix it so it won’t happen again. We also remedy the discrepancy by either issuing a corrected paycheck or by adjusting a future paycheck.
Most paystub errors end there. The employee notices something, and the employer fixes it.
However, if a payroll problem is left unresolved, the employee can file a complaint with the Virginia Department of Labor and Industry and/or take legal action for missing wages. The Virginia Department of Labor and Industry has the legal right to investigate any wage complaint and impose penalties on employers if they do not comply.
Paystubs are a record keeping device that protects employers and employees.
These records are absolutely vital to keep track of. Now, if record keeping is overwhelming you, we can make it easy. Contact us to learn more about our payroll solutions.
Disclaimer: This blog post is for informational purposes only and should not be construed as legal advice. Always consult the official resources and seek legal counsel if necessary for complete and accurate information regarding specific regulations and practices.
