Key Benefits of Keeping your Pay Stubs
When you are enjoying your hard-earned money every time you are paid, don’t forget to keep a copy of your pay stub because of its importance discussed on this page. 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! 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. You can discover more on the importance of keeping pay stubs below.
When you want you are applying for a loan or want to rent a property, you will be required to provide proof of income and a copy of the most recent pay stubs are most acceptable documents in such situations. 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.
Keeping copies of your pay stubs helps in accurate filing of taxes even if you don’t file them by yourself; maintaining copies of these documents helps in providing the information needed during filing of taxes. Maintaining copies of your pay stubs is important when submitting rental or credit application; when you are applying to be a tenant or for a loan, they can be used to prove your identity and a great way to show proof of your income.
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.