What is the difference between an earnings statement and a pay stub? An earnings statement shows your total income for a certain period of time, while a pay stub includes all the details of your pay, such as hourly wages, taxes withheld, and other deductions. Learn more about the differences between these two documents in this post.
What is an earnings statement
An earnings statement, also known as a profit and loss statement or income statement, is a financial document that details a company’s income and expenses over a specific period of time. This information helps investors and analysts evaluate the financial health and performance of the company.
The earnings statement typically includes revenue, cost of goods sold, operating expenses, interest expenses, taxes, and net income. Understanding an earnings statement can give insight into a company’s overall financial situation and growth.
However, it is important to take these statements with a grain of salt and consider other factors such as the industry and current economic conditions. Ultimately, an earnings statement can be a useful tool in making informed investment or business decisions.
What is a pay stub
A pay stub is a document included with an employee’s paycheck that details the calculations of their wages and deductions. It typically includes information such as the employee’s name, salary or hourly rate, hours worked, taxes withheld, and any additional deductions such as health insurance or retirement contributions.
Receiving a pay stub allows an employee to verify that they have been paid correctly and easily track their income and expenses. Employers are legally required to provide pay stubs for each pay period, either physically or electronically.
It is important for both parties to keep accurate records of pay stubs for tax purposes and in case of future disputes. By providing employees with a thorough understanding of their earnings and deductions, pay stubs play an important role in financial stability and transparency in the workplace.
How are they different
Earnings statements and pay stubs may seem similar, but they have distinct purposes and information. Earnings statements, also known as W-2 forms, are documents that employers are required to provide to their employees at the end of each year. This statement shows an employee’s total earnings for the year, as well as deductions for taxes and other with holdings.
On the other hand, pay stubs serve as a record of each individual paycheck received by the employee. They usually include a breakdown of gross pay, with holdings, and net pay for that particular paycheck. In summary, an earnings statement is a summary of an entire year’s earnings and with holdings, while a pay stub shows information specific to one paycheck.
Which one should you use to file your taxes
When it comes to filing your taxes, it can be confusing to determine which documents you should use as proof of income. It is important to note that an earnings statement, also known as a W-2 form, should always be used instead of a pay stub. Earnings statements are issued by employers at the end of each year and provide comprehensive information on income earned, as well as taxes withheld.
Pay stubs, on the other hand, only show a record of one specific paycheck and do not include all sources of income or taxes paid. In short, relying on a pay stub alone may result in missing out on potential deductions and credits. So when it comes time to file your taxes, make sure that the earnings statement take precedence over any pay stubs.
How can you get a copy of your earnings statement or pay stub
When it comes to keeping track of your earnings and deductions, there are a few options for obtaining a copy of your pay statement or pay stub. Many employers now offer an online portal where employees can view and print their current and past pay statements. If this option is not available, you can also request a copy from your employer’s human resources department or payroll office.
Keep in mind that there may be a fee for paper copies, so it is often more convenient to access them electronically when possible. Additionally, the Social Security Administration offers an online account where you can view your earnings statements and verify your past income information. It is important to keep personal records of your earnings for tax purposes and to ensure accurate payment during employment.