The Importance of Itemized Wage Statements

employment law, pay stub, itemized wage statementsGetting paid at the end of your work week may seem like your top priority, but receiving a copy of your pay stub can be just as crucial. Under California law, employers are required to provide itemized wage statements with each paycheck distributed to an employee. While these payment breakdowns may seem like an extra piece of unwanted paper, they should truly be considered a safety net for catching any wage discrepancies. Here are three reasons to hold your boss accountable for delivering timely wage statements.

See Where Wages Are Going

If you’ve ever looked at an itemized wage statement before, you have quickly realized you’re not getting 100 percent of your check. The deductions from your pay typically go towards things like state and federal taxes, healthcare, and automatic transfers to your savings or retirement. It’s important to track where your wages are going to ensure they’re being invested properly. For example, if you reduce your health insurance coverage, it should be properly reflected in your pay stub. Keep track of these statements and hold your higher-ups accountable when you find mistakes.

Helps With Budgeting

Knowing the details of your typical wage statement can help you plan for the future. Think of your pay stub as a ticket to your dream purchases; if you don’t have a ticket, you’ll never be able to properly plan. Your wage statement should breakdown the amount of hours worked, gross wages earned, net wages earned, deductions, and the inclusive dates in the pay period.

May Need Proof to Purchase Large Items

Whether you’re buying a new car or applying for a home loan, many institutions require at least a handful of pay stubs. These documents help companies verify how much you make and what you can potentially afford. Besides your credit history, your wage statements are virtually the most important financial records you need to have on file. If your employer refuses to provide you with itemized wage statements, contact an employment lawyer.

Carter Law Firm has been successful in cases against the largest companies for itemized wage statement violations. If you would like for us to review your pay stub for any potential violations, please contact us.

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