Every wondered what to do with your paystubs? If you’ve been throwing them away, you may want to start saving them.
Paystubs are useful documents that can help you out when you do your taxes and get ready to make big purchases.
Here’s a look at ways you can use your paystubs and why you should hang on to them.
Be Sure You Are Getting Paid What You Worked For
No matter what job you have, it’s always good to verify that you’re being paid accurately. Your paystubs will show the hours you worked and how much you were paid for them.
Many employees prefer to be paid through direct deposit, which means they don’t get paper checks. But direct deposit doesn’t mean you can’t get a paycheck stub.
Companies that use direct deposit often provide paystub portals on their websites. Employees simply use the paystub portal login and retrieve their records to print or copy.
Verify Income for Tax Purposes
Income reporting is a necessary part of filing your taxes. Whether you work full-time or part-time, you’ll need to show the IRS how much you made in the past year.
If you don’t have paystubs but know how much money you made, consider using a paystub maker. These software programs allow you to format your pay information so it’s easy to read and looks presentable.
Apply for Financial Products
Are you thinking about buying a new car, RV, or taking out a personal loan? Most lenders want to verify your income before they trust you with their money. Making enough income can be enough to override obstacles to getting a loan, like bad credit.
It’s not enough to just talk about your income, though. You’ll need to provide the right documentation. Some employees have bank records of direct deposits but no actual paystubs. If you’re in this situation, use a document generator like Intuit Paystub to make them.
Buy a House or Property
Buying a mortgage or property is a huge financial undertaking of several hundred thousand dollars. Because you’ll borrow such a large amount for your mortgage, you’ll need to show your lender paystubs for proof of income.
Because the bank will use your income to judge whether you can pay them back, providing paystubs is the most important part of your application. It’s very rare for banks to approve mortgages without income information. The only possible exceptions might be if you are a well-known international millionaire or you can pay cash.
What to Do If You Don’t Have Your Paystubs
If you’re missing your paystubs and need income verification, don’t panic. States often have laws that require companies to give their employees detailed reports about hours, pay, and withholdings.
If you aren’t sure what the rules are where you live, contact your HR department at work. Most company accounting departments track what they pay their employees and keep detailed records in case they are sued or audited.
If you work for a company that doesn’t provide an online log-in, you should go to your HR department and ask for paycheck verification records. In most states companies have to provide these documents upon request.
Keep Your Paystubs for Peace of Mind
When it comes to your personal record-keeping, hanging onto paystubs for at least a year is wise. They can help you verify that you’re being paid fairly and prove your income if you need to borrow to make big purchases.
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