Drowning in assorted paperwork? Don't throw out those pay stubs yet! Many businesses are moving increasingly toward electronic statements, but not all employees are convinced. Physical pay stubs still allow you to keep track of your finances in ways electronic records don't.
So before you go throwing out your stubs, let's take a look at five things you might need a pay stub for.
Using A Pay Stub When Filing Taxes
Pay stubs make filing your own taxes less grueling. First, keeping your pay stubs for every paycheck will give you an overview of how much you've earned in a period. That cuts down the amount of time spent backtracking through bank accounts.
Pay stubs also evidence businesses expenses and deductions like pension payments. These are factors that influence the amount of tax you'll owe, so having simple evidence for them can speed up the process.
Keeping pay stubs can reduce some renting headaches. Landlords and agencies will ask for your proof of address and sometimes your income. Keeping pay stubs means you always have documentation on hand to show both of these.
A collection of pay stubs can prove your income over a long period and prove that you're a tenant with a reliable income. When you're busy with the complexities of moving home, keeping pay stubs on hand could save you some stress.
Other Proof of Earnings
As with renting, your pay stub could help you show proof of earnings for other applications. If you're applying for credit, like a loan or a car finance, then the financer will usually ask for proof of earnings. Providing your pay stubs can make this easy. Certain visa applications also require evidence of an income threshold you need to exceed.
Sometimes these queries will come when you least expect them, so keeping your stubs will ensure you're equipped for any surprises.
If an accident puts you out of commission and you need to file compensation for loss of earnings, a few pay stubs could make the process easier. A pay stub can provide evidence vital to making a compensation claim successful. They're documented proof of the earnings you've made, so they're also evidence of future payment you're losing.
Calculating and proving loss of earnings is complicated, so it's better to have the evidence on hand.
It's easy to get complacent if you're paid by bank transfer. Many of us don't think to check regular credits and debits on your accounts. If there's something off about your earnings, you might not know about it for months.
When this happens, it's helpful to have physical evidence of payments made to you and their dates. If you keep them safe and organized, it's much quicker than crawling back through bank transactions. That means you're also more likely to notice an irregularity in the first place.
Don't Trash The Pay Stub
We're not quite at a paperless society yet. Keeping your pay stubs could save you time spent on personal admin with a minimal impact on your life. So think twice before throwing them away.
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It's also good to equip yourself with some knowledge about paystubs for independent contractor and the legal requirements for paystubs records. For students, you need to know the different paystubs that you'll use when you're in school.