Human Resource Blog

Are check stubs necessary to have when you have direct deposit?

Are check stubs necessary to have when you have direct deposit? This comes up often. Is it nessecary? We are big on recycling and going “Green”, but does it fall under the law under recordingkeeping that we have checkstubs? I know this a strange question but please help resolve. We are in Tennessee.

Yes, for the companys protection, you should continue giving check stubs to employees. Without it, employees will have no itemized record of their wages, hours worked, rate of pay, taxes withheld, benefits, vacation accrued, etc. etc. Even more importantly, it will be difficult for the employer to demonstrate that the employee is, in fact, being paid the full amount he/she is due, without a pay stub.

Many states require by law that the employer provide a written record of all wages received and all deductions from that pay. In Tennessee, its the Wage Regulation Act. Even if it were not the law, it would be the best practice in HR.

Since your workplace is going green, you can certainly provide a paper recycling bin for employee to throw their check stubs in after they look at them. But just expecting employees to trust that they are being paid correctly, with no documentation, is probably realistic.