Are you one of those people who save their every receipt in a shoebox for each and every purchase
made? That’s awfully organized of you although there are other electronic means that have come
to light in the recent years.
Check out this article for the best receipt scanner apps
you can use and ditch that shoebox!
Pay stubs function in a similar way. Most people always stack up their pay stubs in fear that
they would need one of those pay stubs, one day. Is this the right approach or is there a more
efficient strategy? Well, the good news is that you do not need to keep ALL of your pay stubs
ever given to you. Read on further as we explain
how long to keep your pay stubs and when to discard them.
Let’s get down to the basics first, why do people store their pay stubs? Is it worth it or is it
just hoarding paper? Below you will find a few reasons why it’s important for individuals to
hold on to their check stubs.
Verification: To make sure you are getting paid correctly and all your numbers
Tax Filing: For reference when filling out your tax return
Proof of income: Can be helpful to assist you with any large purchases you
want to make.
It’s important to retain your proof of income but for how long? That’s a good question. It is
well agreed upon that any individual must hold on to their pay stubs for at least one year. They
are crucial to reconciling your form W2
and any contributions you’ve made to social security.
Keeping your pay stubs allows you to understand the amount you owe during tax time. Once your tax
returns have been filed, it’s time for you to let go of them. Say no to hoarding pay stubs and
create pay stubs online using a paystub generator. Our paystub creator has raved reviews for
having assisted many Americans in getting one of the important financial documents in place for
various business needs.
For business owners, it’s a slightly different case. Holding on to pay stubs is required by law.
Organizations must keep financial records and ensure they comply with the law or face severe
The Equal Employment Opportunity Commission (EEOC) has strict
safeguarding personnel records.
According to the Fair Labor Standards, Act (FLSA) organizations must keep personnel records for
at least a period of 3 years. The IRS however, requires employers to keep information such as
employee information, relevant work dates as well as form W4 for a period of 4 years.
Be sure to always remain compliant and stay on top of these laws and regulations. They can change
even slightly at any given time. Make sure you also
protect yourself and your business from an FLSA lawsuit.