Companies employ many staff. The staff will be paid for the work done. Hence, there is a need to record the earnings of the staff accurately and clearly.
Many companies use an earning statement to record their employees’ work hours especially for those who are on an hourly or daily basis.
An earning statement records all the necessary personal details of the employee as well as his hours worked for salary computation.
An earning statement template may display the following information:
* Company Name
* Employee Name
* Employee Number
* Employee Title
* Employee Department
* Employee Social Security Number
* Work Status
* Employee status
* Days of the Week
* Task Description
* Regular Hours
* Overtime hours
* Total hours
* Line total
* Rate per hour/day
* Non cash compensation
* Tips received directly
* Tax deductions
* Mode of payment
An earning statement will be presented to the employee to confirm the correct computation of his wages where his signature is required at the bottom of the page.
Some monies may be held back by the employer for tax purposes, depending on the law of the nation. An earning statement is likened to a payroll slip where the employee is able to view the amount he earns on a regular basis.
The employee must work out with his employer on the mode of payment for his wages.
Consider the attached sample template for your convenience.