Compelling Reasons to Keep your Pay Stubs
If you are not keeping a copy of your pay stub every time you are paid, perhaps it is time to start because these documents are valuable in more ways than you can imagine. The majority of people may be reluctant to keep pay stubs because of the clutter they cause which is understandable, however, you should still find an organized way of keeping the paper pay stubs now! You can use pay stubs for more than just learning more about the amount of your direct deposit. Keep reading to learn more on why you should keep your pay stubs.
You need pay stubs for proof of income; if you find yourself in a situation requiring proof of income, pay stubs really come in handy, plus they are the most widely accepted documents. Pay stubs are beneficial for identify verification purposes; when opening a bank account or submitting applications, you will be required to provide proof of identity and since every pay stub shows social security number and other personal details, they aid in proving your identity.
Pay stubs are not only important for keeping tabs on your paychecks but during filing of taxes too; filing of taxes is usually easier and more accurate if you have copies of your pay stubs even if you don’t file the taxes yourself. Another reason for keeping your pay stubs is rental or credit application; since none of these can be completed without proving proof of income or identity, providing the most recent copies of your pay stubs usually helps.
Its important to know the number of hours you are working in each pay period if you are being paid per hour, hence, the importance of keeping a copy of each pay stub your receive, either electrical or paper-based. Whether you are self-employed or working for a company, you need to maintain an accurate financial record to protect yourself during tax audit which is when the copies of your tax stubs may come in handy.
Keeping pay stubs is important for financial records which is essential for a variety of reasons; it is true you may not need these copies at all times but it is safer to keep them just in case. Since you have to submit these documents to lease your next home or obtain financing, you can see how keeping them is important. You should start keeping your pay stubs for the reasons discussed above.