Learning The Secrets About Taxes

State by Stae Paycheck Stub Requirements

Although nearly 100 percent of employees get their pay via direct deposit, a lot of small businesses still prefer to use paper checks for their payroll.

Employers are not required by the Fair Labor Standards Act (FLSA) to provide pay stubs, but they are required to keep accurate records of their workers’ wages and hours rendered. Hence, before deciding how to go about payments for your personnel, see to it that you’re following state compliance.

States Where NO Pay Statements Are Required

There are presently nine states with no requirement for employers to hand out pay stubs to workers, but if chosen by the employers, pay stubs may be given in electronic format. Such states are the following:

Alabama
Arkansas
Florida
Georgia
Louisiana
Mississippi
Ohio
South Dakota
Tennessee

States that Require Pay Information ACCESS

In some states, on the other hand, employers are required to furnish employees with pay stubs that break down their pay information. But it is unnecessary to put the pay statement in traditional written form or on paper. Here are the said states:

Alaska
Arizona
Idaho
Illinois
Indiana
Kansas
Kentucky
Maryland
Michigan
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New York
North Dakota
Oklahoma
Pennsylvania
Rhode Island
South Carolina
Utah
Virginia
West Virginia
Wisconsin
Wyoming

A logical understanding of the law suggests that compliance with pay stub requirements in this states can be done electronically. Anyhow, workers have to be able to access the electronic or digital pay stubs.

However, remember that while interpretation is set in concrete in some states, other state agencies can require more – for instance, the capability to print the digital pay stubs.

States that Require Pay Information ACCESS AND PRINT Capability

Some states require employers to furnish employees a written or printed pay statement that contains their pay information. The pay statements though are not strictly to be given with the check or in another form. The logic is that an employer can comply with this particular requirement by giving workers electronic pay stubs that they can print. It is the job of employers to make sure that their employees are able to access the pay stubs and can print them.

Again, some state agencies may have additional requirements – for example, the worker consenting to receive his or her pay stubs electronically. These are the states where the above applies:

California
Colorado
Connecticut
Iowa
Maine
Massachusetts
New Mexico
North Carolina
Texas
Vermont
Washington

Opt-In/Opt-Out

Right now, the state of Hawaii is the only state where employees must consent to employers’ implementation of a digital or electronic pay system. Unless the employee has agreed to receive electronic pay statements, the employer has to furnish them with a printed or written pay stub.

When the state uses a particular method of delivery (for example, on the paycheck or pay envelope), employee consent is needed for electronic delivery. If an employer implements a paperless pay system in opt-out states, namely, Delaware, Minnesota and Oregon, they should be able to opt out to start getting their paper pay stub again.