3 reasons why you might need pay stubs

We all have seen a paystub. But are you aware of the reasons you need them?
They are quite vital.

Everyone should hold onto them. The length of time they are needed depends on who you are, what you do for a living, and how long your employer is.

We have compiled a list with the three most common reasons you will be thankful that your paystubs are on hand.

1. The proof of income

Paystubs require proof of income. A credit check may also require you to show multiple most recent check slips for money-related transactions.

It doesn’t matter if you need to borrow money, rent a house, buy a first home, get a loan, or have a credit card.

When a large amount of money is involved it is likely that the business that you deal with will need proof that you are bringing in enough money to cover your expenses.

2. You Suspect Inaccurate Net Payment

Unfortunately, mistakes happen! If you feel you didn’t get paid what your employer owes, your stub contains all the information you need.

Simply put, your stub is your gross income. This represents your pay before taxes. The net income is what you earn after taxes and other insurance are deducted. If elected, taxes can be deducted in addition to insurance.

You may find errors in overtime, taxes not paid out or insurance deductions.

It’s much harder to prove incorrect payment when you don’t have your paystub.

These are all reasons why employers must retain employee stubs for at minimum four years.

3. Preparing for Tax Filing

It won’t surprise you to find out that you owe more taxes when tax time comes around if your pay period is kept track of. This is a great way to save time and avoid any potential headaches.

If you are not satisfied with the amount of your deductions, you may change them so you don’t owe anything.
Find your Check Stubs

It’s okay to be panicked if you realize that your pay slips have been lost or thrown out. There are many options, because paystubs can be so crucial.

A paystub generator can automatically create your stubs. It’s easy and intuitive, so you don’t have to search for any missing stubs.