Payroll

When wages must be paid

• Wages are due at least twice during each calendar month, on regular paydays the employer designates in advance (Labor Code §204(a)).
• Work done from the 1st through the 15th is paid between the 16th and the 26th of that month.
• Work done from the 16th through the last day of the month is paid between the 1st and the 10th of the next month.
• Weekly, biweekly, or semimonthly payrolls meet the rule if wages are paid no more than 7 calendar days after the payroll period closes (§204(d)).
• Overtime wages are due no later than the payday for the next regular payroll period (§204(b)).
• Post a notice showing the regular paydays and the time and place of payment (§207).

The itemized wage statement (pay stub)

Semimonthly or with each payment of wages, Labor Code §226(a) requires an accurate itemized statement in writing that shows:

• 1. Gross wages earned
• 2. Total hours worked (not required for certain salaried exempt employees)
• 3. Piece-rate units earned and the piece rate, if paid by the piece
• 4. All deductions
• 5. Net wages earned
• 6. The inclusive dates of the pay period
• 7. The employee's name and only the last four digits of the Social Security number (or an employee ID number)
• 8. The name and address of the legal entity that is the employer
• 9. All hourly rates in effect during the pay period and the hours worked at each rate

Keep a copy of each statement and the deduction records for at least three years. An employee injured by a knowing and intentional violation can recover the greater of actual damages or $50 for the first pay period and $100 for each later pay period, up to $4,000. The paid sick leave balance must also appear on the stub or in a separate writing each payday.

From gross pay to net pay

Gross pay is the total earned before deductions: regular wages plus overtime, bonuses, and commissions. Net pay (take-home pay) is what is left after withholding. The employer withholds these amounts from the employee's pay: