Did you know that employers often don't have a legal requirement to provide pay stubs to their employees? Further, freelancers and business owners often don't get pay stubs to prove their wages when needed.
If you're in one of these situations, you may wonder when you need paystubs generator and how not having them will impact your daily life. Lacking pay stubs can impact everything from getting a place to live to taking out various types of loans.
Take a look at five situations when you need proof of income pay stubs.
- Various Types of Loans
Whether you want a house, car, or personal loan, the lender will definitely ask you to prove what you earn at your job.
Whether you want a house, car, or personal loan, the lender will definitely ask you to prove what you earn at your job. So, if you don't have pay stubs, you can hit a roadblock unless you have other acceptable documentation.
So, can you create a pay stub for free and avoid this issue? Thankfully, pay stub generators online can help.
- Property Rentals
Do you plan to rent an apartment soon and wonder, "Do I need pay stubs?" Usually, your landlord will ask for your most recent pay stub at a minimum along with proof of funds for a deposit and any related fees.
Landlords also use the pay stubs to prove your employment. So, try to obtain them before you head to the leasing office.
- Tax Return Filing
When you're filing your taxes, you might wonder, "Why do you need pay stubs for this?" After all, you'll usually get a W-2 or W-4 forms for your work performed. Having a really good CPA firm (such as kshkcpa.com) to help can be invaluable.
However, having pay stubs handy can help you check your earnings to make sure those other documents don't have errors. You can also use pay stubs to see expenses like health insurance costs that you may get to deduct.
- Proof of Employment
Since they show your employment information along with earnings, taxes, and amounts taken from your check, pay stubs serve as a great way to prove employment in general. So, they come in handy whenever you need to show someone you actually have a job.
For example, you may need to prove employment to qualify for certain assistance programs in your area such as Medicaid or food stamps.
- Some Auto Insurance Claims
You might feel surprised to learn that you may need to show pay stubs if you have a car accident and need to file a claim. While other evidence helps justify the physical damage done, your lawyer will want pay stubs if your injury prevents you from working.
If you lack pay stubs, you may have issues getting enough compensation, so try to get them as soon as possible.
Now You Know When You Need Pay Stubs
Since you know when you need pay stubs and how important these documents are, contact your employer to request them or see if you can create your own pay stubs.
You can also consider showing another proof of income if the organization or person will accept it. For example, freelancers may show invoices, bank statements, or contracts. Employees may be able to show direct deposits or paychecks.
Check out our other posts for more business and legal tips.