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Whenever you start a new job role, it is of utmost importance to check where your paystub ranking is. During your interview, you will always be briefed on the salary you will be paid and whether your salary will be paid monthly or weekly.
You might be expecting paycheck stubs on the first scheduled payday of your job; however, this does not happen every time. In some cases, employers may hold your first paycheck. The first question that will arise in your mind is, does this happen? If it has happened, what shall be my next step if you expect to get paid?
This guide will answer all the questions about your first paycheck and why your job holds your first paycheck. So, keep reading this guide till the very end!!!
Do Employers Hold Your Paycheck?
Let’s first understand the meaning of holding your paycheck. If you are unfamiliar with the firm you are working with, it’s easy to guess that the employer has held your first paycheck as it is delayed.
Yes, it is illegal for employers to hold your paycheck, so in the first place, no firm will do this, but in reality, you will find out later that you are only paid for the work you have been doing.
If this is the scenario, then it is because your paycheck is being delayed. Mostly, this can happen when the firm you are working with is in a state of deficit. This case has become relatively common. It happens when employers are only paid for the work they have done for a previous pay period instead of the current period. However, if you are a new employee, you will not have worked in the last pay period so that you won’t receive any kind of paycheck stubs for that period.
No company or employer can hold your paycheck, as it is against the law. If you haven’t received your first paycheck, it is being delayed.
Why Hold Your First Paycheck?
As mentioned earlier, it is illegal for organizations to hold your first paycheck stubs because you are a new employee. This is a common issue that every new employee worries about because of the rumours about employers holding your first paycheck until you have worked in that particular firm for a certain amount of time.
When you join a new company, you are briefed about the payroll schedule, including the order in which you will receive your paycheck and the date the salary will be deposited into your bank account.
Many companies run in a state of deficit, and the payment schedule can get confused, causing your paycheck stubs to get delayed. That’s why it is important to talk with your employer about the firm’s payment schedule before you join.
How much should your first paycheck be?
When you start a new role at a new company, it is both exciting and nerve-wracking. Starting a new role is initially exciting as it provides new opportunities. But you have bills pending to be paid; it can be stressful and anxiety-inducing.
Guessing how much money will be in your first paycheck is a curious task to begin with, especially if you are an employee on a salary basis. So, let’s look at some factors that can influence it:
- Joining Date: People rarely join the company on the first of every month, so your first paycheck will be less than expected for future paychecks.
- Deduction: The amount of your first paycheck stub will be altered by the number of deductions you have taken. For example, money will be deducted for things like health insurance.
- Payment Schedule: Your employer’s payment schedule will affect your pay. If your employer pays you weekly, your pay will be the value of your first paycheck, but it will be much less than what you were paid monthly.
How can I receive my first paycheck stubs?
Another thing to discuss with your employer is how you will receive your first paycheck. In this digital world, there are numerous methods of receiving your paycheck, but there is a standard procedure for moving forward with your first paycheck.
Below are the steps through which you will receive your first paycheck:
- Direct Deposit: This method allows you to receive the money directly into your bank account on the due date of your paycheck. You must provide your bank account details to your company for this method to work.
- Debit Cards: A less common method for receiving paycheck stubs is through your debit card. Some companies offer debit cards to all their employees; the salaries are then directly deposited into the debit cards, which the employees can use as they wish.
- Physical Paycheck: Some companies give their employees a physical paycheck. These paychecks are either deposited into your account or sent to the HR department.
When can you expect to receive your paycheck?
Generally, until you have agreed upon something with your new employer, you will be paid your paycheck on the first day. You won’t receive your paycheck stubs only when you are hired after the payroll has been managed for one month.
Mostly, this occurs when you are paid only for the days you have worked on the following payday. But you will never have your first paycheck on hold. To avoid this type of error from happening, make sure to talk with your employer about receiving your first paycheck.
Conclusion
No company or employer can hold your paycheck stubs, as it is against the law. If you haven’t received your first paycheck, it is being delayed. To avoid any confusion, you should talk with your employer before starting a new role at a new firm.
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FAQ's
Why do some employers hold your first paycheck?
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Employers may hold your first paycheck due to payroll processing timelines or to ensure employee commitment and discourage early resignation.
How long do employers typically hold your first paycheck?
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The duration varies, but it's usually within 1 to 4 weeks. Check your employment contract or ask your employer for specific details.
Will all jobs hold your first paycheck?
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Not all jobs hold your first paycheck. It depends on the company's policies, industry norms, and local labor laws.
Are there any legal limitations on holding the first paycheck?
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Legal regulations on holding the first paycheck vary by jurisdiction. It's essential to familiarize yourself with local labor laws for accurate information.
