Earnings of an Online Pay Stub

There are many sections of an online pay stub & earnings and is a large part which includes various aspects about what an employee will be earning and within what amount of time (billable hours).

Within the earnings sections there are three sub sections being “hours”, “rate” and lastly “earnings”.

Keep in mind that these three are are closely tied yet also separate in their own ways. So lets take a look at each of these areas.


Earnings Sections of an Online Pay Stub

The earnings section of a paystub will include many things but the most important and popular of them are the amount of hours, the hourly rate and lastly the earnings before any taxes.

Lets take a look at each of these in more details to see how it fits together.


Hours Subsection

The hourly subsection of the earnings section in a pay stub is assumed that the employee is working on an hourly basis. Meaning they are receiving payment for each and every hour worked for the employer.

If an employee had worked 40hrs for the pay period of the pay stub then the “Hours” section of the pay stub will include exactly 40hrs to show that it is indeed the amount of time an employee had worked which would feed into the “Rate” section.


Rate Subsection

The rate subsection of the earnings sections is assumed again that the employee is working on a hourly basis and is accepting a rate of return on a per hourly basis.  This rate is what is negotiated between the employee and the employers prior to bringing them onboard. If the hourly “Rate” had been say $25.00/hr then within the “Rate” section on the online pay stub it should include a rate of $25.00/hr.

This will then be multiplied by the “Hours” subsection to get the “Earnings” section below.


Earnings Subsection

Finally the earnings subsection of a pay stub is nothing but a result of how many hours and at what rate the employee had worked. For example the “Rate” subsection in our scenario would be a calculation of “Hours” multiplied (X) by “Rate”. So the “Rate” would be “$1000.00”.

If the employee is not working on hourly then there is no need to include a “hours” and “rate” section as they will be receiving a fixed amount (gross) every pay period.


So the next time you think about creating or designing your own pay stub online don’t forget to include these three necessary subsections into the pay stub to ensure you communicate what’s necessary to your employees.



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Published In: Online Pay Stubs