Sample Leave and Earning Statement

What is an Earnings Statement?

An earnings statement is a financial document. It summarizes your income earnings in a specific period. It is highly similar to a payslip or paystub. However, a payslip or pay stub is usually given regularly by the company before payday, whereas an earnings statement is often personally requested by the employee for purposes of filing his income tax return in a year. The document will provide how many hours you have worked for the company, at what rate, as well as reflect how much deductions for taxes, insurance, and other benefits have been taken from your paycheck to arrive at a net income.

It is critically important to review the document for any errors. If you find any discrepancies in your personal earnings statement such as missing hours for overtime work and unnecessary deductions you have not authorized, bring this to the attention of your head and have them corrected. Any change in your earnings statement within the year can affect your tax obligations.


Information You Can Find in Your Earnings Statement

An earnings statement is fundamentally the same as a paystub you receive every pay period. It contains the same information and computations of your net pay. The only difference is the former is more formal compared to a paystub or payroll check and commonly used and attached to your income tax returns. To provide you an understanding of the general idea of an earnings statement, below are the information you can find in your earnings statement.

Hours and Earnings: this section will provide the total amount of work you have rendered to the company and the sum of your earnings for a specific pay period. It will also state your basic salary, in order to properly calculate your earnings.Tax Section: you can find your year to date taxable wage, and items of deductions. Typical federal deductions items are social security taxes, medicare tax, withholding tax (income tax) and other deductions such as retirement funds and benefits.Before Tax Deductions: this section will provide your gross salary earnings for a specific pay period before any tax or items of deductions are taken. Basically, the basic daily rate multiplied by the number of days worked in a month (for monthly paid employees).After-Tax Deductions: this section will show the computations made on your gross earnings to arrive at your net pay. Gross earnings minus taxes and other allowable deductions equal net pay of an employee. The net pay is the total amount of pay that will show on your payroll check.Employer Paid Benefits: benefits paid by an employer do not impact your individual earnings. They are merely reflected on your earnings statement for transparency purposes. This includes a breakdown of allowances and benefits such as transportation allowances, food allowances, and other fringe benefits given on top of your basic salary. Totals: this section provides the total amount of gross income or earnings, total taxes, and benefits as items of deductions, the total amount once tax deductions are made, and the total amount of net pay of an employee. This is made for an easy understanding of the computations made on his gross income, to arrive at his net pay. Net Pay Distribution: the total amount of net pay an employee will receive for a specific pay period. In this section, it will indicate the mode of payment made by the company to the employee; whether payment of his salary is made via direct deposit or through a payroll check. For direct deposits, the bank account number of the employee will be stated in this section.Official Leaves: regular employees are eligible for vacation, sick, personal holiday, and legal holiday leaves. In addition, they may carry over unused leaves to the next year. This section contains a breakdown of the use and unused (for carryover) leaves an employee is entitled to.

How To Request an Earnings Statement

Acquiring an earnings statement can be very useful especially during the end of the year when you get your W-2 form and file your federal and state taxes. You need that document to make sure there are no errors in your payslips. The statement will provide you the details of how much work you have rendered in a year and how much taxes are being withheld by your employer. In some scenarios, you may also need to secure an earnings statement for proof of employment when you apply for a loan or mortgage. Whatever your reasons, it is important to know how to acquire the document. To help you here are some steps that can guide you in requesting an earnings statement. 

Step 1: Contact the Human Resources or Accounting Department

Most states make it mandatory for companies to regularly provide their employees with an earnings statement. However, if you are from a place that does not require employers to automatically release the earnings statement to their employees, the first thing you should do is contact human resources or the accounting department. Depending on your company’s organizational chart, find out who manages the employee payroll, it is either the HR or accounting department. They will help you get informed in the step by step process of requesting an earnings statement. 

Step 2: Fill out the required paperwork

Each company has different systems for requiring an earnings statement. Most of the time, the process involves filling out numerous forms and paperwork. A representative from the HR or accounting department will provide you the necessary paperwork that you will need to fill out. If you have questions for specific entries in the form, do not hesitate to ask the representative for clarification on how to fill out the forms given to you. 

Step 3: Submit the request

Once you have filled out all the necessary forms and paperwork, call the attention of the representative and have him review the documents. If the representative is satisfied, he will process the submittal of the request for you.

Step 4: Wait for the statement to be released

Leave your phone number or email address with the representative so he can easily contact you once the earning statement has been printed and ready for release. How long you wait will vary from one company to another. Often you will only need to wait for less than a day, however, for large-scale companies with numerous workloads, you will have to wait for more than a day to get your earnings statement printed and released. Make sure to secure the contact details of the HR or accounting department so you can contact them and follow-up on your request.


Is an earnings statement the same as a paystub or payslip?

An earnings statement is highly similar to a pay stub. Both documents provide a breakdown of your net pay. It contains the taxes and deductions made from your gross pay or basic monthly salary.

Where do I get an earnings statement?

You can ask the company or business establishment where you work for your earnings statement. For small businesses, you can ask for a statement from your employer or from his secretary. On the other hand, for large-scale businesses that have a Human Resources or Accounting Department, you can ask for your earnings statement from such departments. The process is relatively easy, all you need to do is inquire from the HR or accounting department and they will usually give you forms to fill-out. Once you have sent in the necessary forms, they will ask you to wait and contact you once the statement is good for release. Often times, a company has its own website and provides you with a username and password; from there, you can easily access your records and keep track of your pay and deductions.

What if my employer refuses to issue me an earnings statement?

It is unlawful for an employer to withhold an employee’s earnings statement. If your employer refuses to issue you an earnings statement, consider calling the IRS for assistance and report the situation. You can contact the IRS at 1-800-829-1040. Typically they will need your basic information such as name, address, and contact information, as well as your company’s business name, address, and contact information. A few days from your call, they will send a letter to your employer asking to explain, failure to respond will ensue investigations against the company for violating federal laws.

What if I no longer work for a company, can I still request from them an earnings statement?

Yes, you can still request from them a copy of your earnings statement. Contact the Human Resources or Accounting department and explain to them that you are a former employee requesting a copy of your earning statement from the periods you have worked for the company. You can also contact a former supervisor and ask him the favor of securing and requesting the earnings statement on your behalf. If your company refuses to issue you one, the process for filing complaints against them remains the same as above.

How many copies of my earnings statement should I request?

It depends on the transaction you will use the document for. For filing your federal and local taxes, you will need at the very least three copies of your earnings statement. One for your federal tax return, one for your state or local tax return, and one for personal records.

The task of producing and printing earnings statement is typically given to the Human Resources department in your company. However, for self-employed individuals and for purposes of filing income tax returns, you need to create and fill-out one yourself. It is relatively easy when you have a template you can follow. Browse through our website and find a sample template suitable to your taste. Download the file, fill it out, and print the document to your desired format; either Microsoft word or pdf format.