What States Require Printed Pay Statements?
Removing paper from the payroll process definitely helps the environment. That's why services like direct deposit, payroll cards, online pay statements and online access to payroll reports are becoming more popular. Could your business be out of compliance though if you only provide your employees with an electronic copy of their pay information? The answer is yes.
Before you go to a paperless payroll services solution using electronic or online pay statements, it's best to carefully review the state requirements for the delivery of employee pay information. Some states may interpret these obligations differently and may include additional requirements in order to comply with the statute.
States That Don't Have a Pay Statement Requirement
There are eight U.S. states that don't require employers to provide a pay statement to their employees. These states include Arkansas, Florida, Louisiana, Mississippi, Nebraska, South Dakota, Tennessee and Virginia. If employers in these states choose to provide pay stubs to their employees, they can do so electronically. In the state of Virginia, an employer must provide a wage statement to an employee only if the employee requests it.
States That Require Access to a Pay Statement
The following states require that an employer 'furnish', 'give' or 'provide' an employee access to an earnings statement that contains detailed pay information. They don't require that it be a written or paper wage statement so the statute leaves room for the interpretation that an electronic pay stub is acceptable. States that require access to a pay statement include:
- New Hampshire
- New Jersey
- New York
- North Dakota
- Rhode Island
- South Carolina
- West Virginia
States That Require Access to a Printed Pay Statement
The following states require that an employer provide an employee with access to a printed pay statement. Since employees can print an online or electronic statement, the interpretation of the law seems to be that it is reasonable to provide employees with access to an online pay statement as long as they have the ability to print it. States that require access to a printed earnings statement include:
- New Mexico
- North Carolina
States That Allow Employees to Opt-Out of Receiving Electronic Pay Statements
There are six states that allow employers to provide employees with electronic delivery of their pay statements. If your business wants to begin using a paperless payroll program with an online or electronic earnings statement, you must allow your employees to opt-out of receiving their statements electronically and go back to receiving a paper pay stub again. The states that give employees the option of returning to a paper wage statement include California, Delaware, Massachusetts, Oregon, Wisconsin, and Wyoming.