Paycheck definition
/What is a Paycheck?
A paycheck is a check issued by an employer to its employees, to compensate them for the work they have performed for the organization. A paycheck contains the net amount of salary or wages paid to an employee. A pay stub is normally attached to a paycheck, detailing an employee’s gross pay, itemized deductions, and net pay. Paychecks may be replaced by electronic payments, such as direct deposit, that send the pay amount directly into an employee’s bank account.
Paycheck Controls
An accounting department typically imposes several controls over the paychecks that it creates. These controls include the following:
Maintain all unused paychecks in a company safe.
Maintain a separate listing of all unused check numbers, to ensure that no blank paychecks have been stolen.
Only hand out paychecks to employees who can prove their identity with a legal form of identification.
Store all undistributed paychecks in the company safe.
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When Do You Receive Your Paycheck?
You typically receive your paycheck on a regular schedule set by your employer, such as weekly, biweekly (every two weeks), semimonthly (twice a month), or monthly. The exact payday depends on company policy and may also be influenced by state labor laws. Some companies offer direct deposit, meaning the paycheck arrives automatically in your bank account on payday. Others might issue paper checks that you either pick up at work or receive by mail.