Hourly to Salary Check Stub Issue

by Concerned
(North Carolina )

I was switched from hourly to salary by my employer but I noticed that all of my pay information when I was hourly has been dropped from my check stub. This includes local and federal taxes, medicare, etc. I asked my employer ( small business under 1000 employees) what was the reason for this and I was told that they have two separate systems for payroll: one for hourly and one for salary.

If an employee is switched their check stub will only reflect monies paid under the new status. She said that in the end of the year they combine the hourly/salary reports to come up with an accurate W2. According to our state law employers must issue a check stub every payday with all deductions noted.

How can this company do this if the law say otherwise? Is this procedure common at other places? If my employer has deducted $800.00 in tax for the year from my pay should not my check stub reflect that?

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Unusual to Have Two Systems
by: Best Business Payroll

Let us first say that having hourly and salary handled by different systems is not typical at all. The exception would be in cases where there is more than one Federal ID involved (and this isn't the case since your employer is telling you they will be combining both to produce one W-2 at the end of the year.)

There are two things you can do: 1. Have them send you the final pay stub from your hourly status if you do not have that on file. You can then add it to your new pay stubs so you will know where you are year to date in terms of wages and deductions. 2.Call your State Bureau of Tax. They can call your employer to look into the legality of what they are doing with the pay stubs. You may do this anonymously if you would like so you don't need to worry about repercussions from your employer.

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