Advantages Associated with Keeping 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. Despite the clutter they may create, you should make a plan to keep a copy of each of your pay stubs on this site. The pay stubs are important for a variety of reasons and the information on them can come in handy during various situations that you should know about. 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. There are a few situations where you may have to verify your identity or prove that you are who you say you are and the fact that the pay stubs are from an employer combined with personal details like social security number are enough to verify 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. If you are applying to be a tenant or for a credit, you may need to provide your last few pay stubs which is why you should keep the electrical or paper copies; they show proof of income for your rental and credit application.

Keeping copies of your pay stubs is beneficial in keeping track of the hours you work; if you are paid hourly, each stub will detail the number of hours you have worked in that period, thus keeping track of everything. 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.

You should also maintain the copies for financial records; since you never know when you may need the copies, you are advised to maintain them for at least one year o keep a record of your earnings. In case you are not keeping any financial records, maintaining copies of your pay stubs is a good place to start. You should start keeping your pay stubs for the reasons discussed above.