Our last blog talked about why employees should review their pay stubs. Now, Teresa Ray from The Payroll Department wanted me to share the reasons why keeping pay stubs is important.
The Payroll Department provides payroll services to many entrepreneurs and small business owners. Teresa knows it’s a relief for them knowing that a professional keeps them informed and in compliance with information regarding payroll. It’s especially important that the payroll taxes are handled accurately and on time.
Because they have outsourced to a payroll provider, the employers give her the information she needs from the workplace records, then they get the completed payroll back and they distribute it. The pay stubs are the employees’ record from each pay period and the employer is busy taking care of business.
Therefore, a good employee is considered one who keeps the pay stub for future reference. They might see it as “just in case,” but an employer who provides jobs for many workers could be asked for replacement pay stubs every week and if they don’t have a human resources department, it takes up a lot of their time.
So, be a good employee and consider all these reasons why you might need a pay stub:
- To secure a loan to purchase a home or vehicle
- To refinance a mortgage
- To obtain a credit card
- To obtain retail store credit
- To be accepted as a tenant
For a work reference:
- To show the number of hours you work per pay period
- To show where you work and length of employment (at least for the calendar year)
To provide proof of:
- Payment of loan payments (through payroll deductions)
- Evidence of savings plan (through payroll deductions)
- Payment of child support
- Payment of wage garnishments
For Income Tax Return Filing:
- Total annual income
- Total taxes paid
- Proof of work expenses
- Proof of health benefits (HSA amounts and premiums paid)
A pay stub is somewhat like a resume. It shows information regarding the current pay period and year-to-date totals. Those totals provide historical evidence that pay and payments have been consistent and continual – regular. If that information isn’t available, the lender may decline the application.
Be smart, keep your pay stubs all year and then keep the last one for the year with your tax records. It will make life easier.
-Elaine of The Payroll Department Blog Team