It’s always nice seeing those direct deposits hit your bank account, but do you truly know how much money you’re making?
To find out, you’d check your pay stubs. Typically employers will send you these important documents through the mail or in an email, or you may log in to your company’s HR website to find them yourself.
How important are these documents?
Turns out, very.
You need pay stubs for all sorts of major events throughout your life, so it’s important to hang on to them. Here are just a few times you will be required to show proof of employment.
1. Filing Your Income Taxes
Wondering how to use a pay stub for taxes? It’s actually quite simple, but pretty much mandatory. Your paycheck stub will show how many hours you worked over the course of the year and exactly how much you’ve earned this year-to-date.
These documents also prove how much money was taken out for things like business expenses or health benefits, which can save you money on your taxes!
2. Applying for an Auto Loan
If you’re in the market for a new car, you’ll probably encounter a dealership asking for pay stubs.
To receive an auto loan, they need to make sure that you currently make enough money to pay off the monthly minimum on the loan. Pay stubs make excellent proof because they show how much you’ve made within a certain period.
3. Renting an Apartment
Leasing agents often require proof of employment and income before finalizing an applicant’s request to move in.
Usually, agents will ask for your last five pay stubs for apartment proof that you’ll be able to make enough each month. Your rent should only be about 30% of your net income. Use this online calculator to see how much rent you can afford!
4. Applying for a Personal Loan
The application process for personal loans is much like that of an auto loan. The lender just needs this information to assess how much of a loan they are willing to provide based on how much you will be able to pay back.
You may need to provide a few different types of stubs to prove this information, like the past few months worth or just one comprehensive document.
5. Proof of Employment
Not everything in life can be predicted, so it’s always a good idea to save your pay stubs in case you need to provide proof of income, hours worked, or employment.
But let’s be real, nobody is perfect! Ruffling through junk drawers for hours in an attempt to find pay stubs that you might have thrown away months ago isn’t worth it. For hassle-free check stub templates, check out this page.
In just a few clicks, you’ll be able to recreate these important documents and on your way.
Keep Those Pay Stubs
You just never know when you might need them, so trashing your pay stubs or deleting those emails is never a good idea.
For more helpful tips and tricks, scroll through some of our other articles covering everything from sports and weather to entertainment and education!