Employee Earnings Records are special records for each payroll for each employee: they include all the earnings and withholdings an employee had for a specific period of time. These records are used to keep information concerning the pay rate of an employee, working hours paid, type of pay, amount and types of withholdings which were taken from earnings, such as taxes and deductions. It also includes information on pay periods and pay dates. The totals by months, quarters and years are calculated and used in preparation of the required payroll tax reports for government.
The employee earnings records embrace the following categories of essential data:
- Gross pay of the employee;
- Hours worked and pay rate;
- Withholdings: income taxes referring to federal, state or local fiscal policies;
- (In USA): FICA tax deductions (social security and Medicare);
- Voluntary deductions;
- Employee net pay after all withholding and deductions;