Are you wondering if you need to save your pay stubs and why? There is tons of important information available on these financial documents which makes them worth saving for a period of time.
To learn more about how long to keep pay stubs as well as what the benefits are of doing so, keep reading. Make sure you have all the documents you need this year with this helpful guide.
Save Pay Stubs for Tax Purposes
Paystubs aren’t only important for keeping track of your paychecks, they are also helpful when it comes time to accurately file your taxes. By having copies of these documents on hand you can make filing your taxes easier for yourself or your accountant. This also helps you better prepare for any tax audit.
By maintaining accurate financial documents and records, you can more easily protect yourself in the case of a tax audit. This is true whether you are employed by a company or are a freelance worker. State and federal taxing agencies can choose to audit your tax records at any time, so it’s best to stay prepared.
If you have saved a copy of every pay stub you’ve received, you can submit these documents to support the information in your tax filings.
Save Pay Stubs for Verification Purposes
Another great reason to hold on to your pay stubs is to protect yourself with documented support. For example, when you open a bank account, you may need to present personal documents to verify your identification. A pay stub can be a great document to hold onto for this purpose, as it includes personal information, such as your social security number and more.
You can use your most recent pay stub to confirm your identity along with other documents, such as your social security number or state-issued ID to confirm the information on your pay stub. Additionally, you can use your pay stubs to verify your proof of income. Obtaining certain financial support, such as applying to lease a property or vehicle, which are great examples of situations in which you may be required by lenders and other third party members to prove your income.
Freelance employees can also use pay stubs and other payroll documents to prove their income. If you are a freelancer, you may consider using a paycheck stub maker for income statement. You may want to meet with an accountant to ensure that you are submitting the correct information on these forms if it is your first time creating your own pay stub template.
The Benefits of Holding Onto Your Pay Stubs
As you can see, holding onto your pay stubs, or a copy of your pay stubs can help you in many different situations. While you may not need them now, you may need them later and it will be handy to have them. Make sure you have the financial documentation you need to for verification, tax purposes, and more.
To learn about more tools that can help you with your finances, head to the “Technology” section of the site.