Check stub definition
/What is a Check Stub?
A check stub is attached to a check , and provides the detail regarding the amount paid. The contents of a check stub typically include the invoice number paid and the amount paid, which sums to a grand total paid. When a check stub relates to a paycheck, it itemizes the gross amount being paid, minus all pay deductions, resulting in a net pay figure.
How is a Check Stub Used?
The information on a check stub is used by the recipient to match cash receipts against invoiced amounts in the recipient’s accounting system , and so reduces the volume of calls back to the accounting department, asking about the nature of payments made. If a check stub relates to a paycheck, then the check stub is used by the recipient to examine his or her gross pay, deductions, and net pay information. This is a good way for an employee to spot problems in a paycheck and bring these issues to the attention of the accounting department.
What is a Paystub?
A variation on the check stub concept is a paystub. It contains the detail for the amount of net pay stated on the attached paycheck. The information stated on a paystub includes the amount of gross pay, all taxes withheld, and all other deductions withheld, resulting in a net pay amount. Employees typically review their paystubs to ensure that their gross pay was calculated correctly, and that the correct deductions were taken from their pay.
