How Long To Hold On To Pay Stubs And Why Should You
By Davis Clarkson , December 15 2019
Ever caught yourself thinking how long should you keep pay stubs? You have a stack of paystubs sitting in your closet, shelf, or desk drawer and you're not sure what to do with them. How long should you keep pay stubs? Once the check clears, are you safe to throw them out? Some people feel hesitant to trash these valuable sources of information.
There's a genuine rationale behind that fear. Getting reprints of financial documents can be a huge pain and time-consuming to boot. So how long should you keep pay stubs before getting rid of them? Read on to find out how long should you keep pay stubs and hold onto them for.
How Long Should You Keep Pay Stubs?
When you get paperwork as often as you do paystubs, they can quickly begin to take up space. Even if you're an organized person, it can begin to feel like there are far too many paystubs filling up your bedroom, office, or other storage space. So how long should you keep pay stubs? You should, however, resist the urge to trash these little slips of paper for at least a year.
There's no need to keep a pay stub for the rest of your working life, but holding onto them for a year can provide several benefits. It's not the end of it, read on to know more about how long should you keep pay stubs for and why.
They Can Help When Filing Taxes
One of the main reasons you should keep pay stubs around is so that you can easily have them when it comes time to submit them to the IRS. You don't technically need these stubs to do your taxes, but having something to reference can be quite helpful and time-saving!
If there are any discrepancies with your W2 or if your accountant asks for your pay stubs, you'll be happy that you had them at the ready.
They Provide Proof Of Income
If you're thinking of making a large purchase in the future, like purchasing a car, you might need your paystubs nearby. When making a big purchase, buying a home, or taking out a personal loan, you'll need to provide proof of income to the other party.
Your pay stubs are the easiest and clearest way to provide this. You could always ask your employer to reprint or resend your pay stubs, but this can be a lengthy process. If you're waiting on something time-sensitive, missing your pay stubs might be enough to lose out on a great opportunity. Still, fussing about how long should you keep pay stubs? Well, it pays off!
Properly Disposing Of Pay Stubs
So how long should you keep pay stubs? Long story short, once a year has gone by, you're probably safe getting rid of your pay stubs. When you do, move to the trash, make sure you get rid of them properly. These pay stubs contain sensitive personal information and you don't want them getting into the wrong hands.
Use a personal shredder to properly shred your stubs and protect your personal information. The last thing you want to do is put something that important in the trash in one piece.
The Importance Of Pay Stubs
There are many reasons to hold onto pay stubs long after you first receive them and the question of how long should you keep pay stubs is not all that uncommon. You never know what situation you might run into when you need them. To learn more about the importance of a pay stub document, check out this blog article. Lost your paystub and need help proving your income? Check out our pay stub templates for your chance to create your stubs with the paystub creator today!