There comes a time every year where you need to gather certain documents and complete your tax information. These forms and your payment information can be found in a few specific places.
Receive a wage statement from your employer?
There’s a lot of handy information on this document. As an employee, it’s good to know what’s on there and what you might need that info for in the future.
Here’s what you should know.
What Is a Wage Statement?
A wage statement, sometimes called a wage and earnings statement, is a form that breaks down how much money you made in a specific time period.
This document is traditionally attached to your paycheck. However, since many companies now insist on using direct deposit, you may have to access the form online under your employee portal (or ask someone at the office where you can find it).
Certain states, like Florida and Arkansas, do not require employers to give a wage statement. In California, companies are legally obligated to provide one.
So if you are curious as to why you aren’t receiving one, look up your state guidelines (or ask your company’s HR department).
What Information Does It Contain?
Below, we’ll go over the type of information you can expect to find on a wage statement.
If you’re an employer trying to fill out easy forms for your crew, you can fill in the pay stub form in less than 5 minutes.
Typically found at the top of the page, this unique number helps track your income through various pay periods and manage your annual wages.
It’s also important for the company to be able to report accurate information to the IRS.
Gross Wages for the Year
Along with your income for the month or pay period, your gross wages (before taxes) should be listed somewhere on a wage statement.
Again, this number becomes important come tax season. The amount you owe in taxes is determined by your gross income each year.
Deductions help prevent you from being surprised when taxes do roll around. They also ensure you get money into retirement (if you’ve signed up for it or your company offers it), health insurance, and other company programs.
These numbers show how much was taken out of your check. They typically also show how much has gone out of your check for the year, too.
Employee programs, such as health savings accounts or educational assistance, are considered taxable benefits.
If you’re enrolled in them, you may also find them listed on the top of your wage statement.
Wage Statement vs. W-2
A wage statement is not the same as a W-2 Form. The difference is pretty simple.
Wage statements keep track of how much you earned in a specific pay period. Your W2 form documents how much you made for the whole year, subtracting taxes and other expenses, to help you determine your AGI, or adjustable gross income.
Most often, a loan officer will ask for a W-2 instead of a wage statement. However, you may be able to get away with a few recent pay stubs if you don’t have the information handy.
Information on a Wage Statement
A wage statement contains info like your employee number, deductions, taxable benefits, and gross wages for the year. It’s a real-time snapshot of your income that can be useful to reference in a number of situations.
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