Payroll check is a paper document that an employer pays an employee for services rendered. This document contains the full breakdown of the various components that an organization provides. The payroll check holds the net amount that an employee has earned.

Payroll check and payroll stub
A payroll “stub” on the other hand, holds details of all the deductions including insurance, tax and even other deductions from the gross pay.

Indications on a payroll ‘stub’
The stub will contain the name of the company on the upper side of the sheet. It will also contain a detailed breakup of the salary and the amount deducted in federal, local and state income taxes. Usually, the check is added with the pay stub; the check can be identified in a few ways. The check is a thicker sheet of paper, and if you hold the check against a light, it will show a watermark of the company. The check will also have the company logo and address, along with the bank logo and address.

Tracking net pay’
It is imperative that you track the amount that you receive in hand and calculate it from all the deductions. If you have any investments or other loan payments, your deductions will be reduced. There are many deductions that are mandatory, such as social security tax, wherein every citizen has to set aside a 6.2 % for the gross social security fund. It is the same for the national health care insurance.

What is a paycheck like?
A paycheck is given based on the payment cycle of the employer; it might be weekly, bimonthly or monthly. The paycheck is made out to the employer and contains the details of the employer along with the bank details. The check contains the sign of the employer. It contains the net pay that the employee is entitled to. Sometimes the employees may not have a basic bank account, and in this case, the amount is transferred to a payroll account. The employer will be the owner of this account. The employee is given the payroll card, which functions as a debit card, to access their salary.

Other facts
It is important that the payroll check is given right on time. Otherwise the IRS will take action and put a fine and treat it as a penalty. Many employers, in a bid for security, usually create electronic paychecks and pay stubs. These are sent to the employee email ids and can be easily accessed by the employees with a specific password. The payroll check is also valid for a specific period of time and must be encashed before the end of the time period.