43% of Americans wish they had a bigger house, maybe you’re one of them. You’ve been on a kick lately, trying to see what you can get rid of to free up some space and give yourself some breathing room. You’ve been eyeing those stacks of paper boxes, wondering, “Do I really need to keep all this?”
Those piles of papers definitely don’t spark joy, but you’re afraid to toss them because, “what if the IRS comes calling?” Well, we’re here to help. We’ll teach you just how long to keep pay stubs so that you can feel free to purge old records to your heart’s content!
Read on to learn more about how long you should keep those pay stubs!
Why Keep Pay Stubs at All?
There are some uses that pay stubs have that make them a good thing to hold on to for at least a little while. At the end of the year, you can use them to verify that your w2 is correct. They are also an easy way for you to prove your income.
Many lenders require you to prove your income by providing a few weeks or months worth of bank statements and pay stubs. Some landlords also require this. Any time you are entering a contract where you are expected to pay on a regular basis, you could feasibly be asked to provide proof of your income.
A great alternative to storing the actual physical pay stubs is to get yourself a quick document scanner. The digital versions won’t take up too much hard drive space and will save you from needing those boxes in the basement. And if you forget to go through them every once and a while and purge the ones you don’t need, you’ll be ok!
How Long to Keep Pay Stubs: The Answer
We recommend keeping your pay stubs for one year. Once you receive your w2 in the mail, you can use them to verify that the amount is correct. Then you don’t really need them anymore. Just hang on to your w2 in their absence.
Some like to keep the final pay stub of every year permanently because it shows year-to-date totals of things like 401k contributions and insurance costs. Though not required, if you want to, go ahead. One per year won’t take up more than a file folder’s worth of space!
Looking to Generate Pay Stubs for Your Business?
If you’re looking to generate pay stubs for your business, it’s never been easier. You can do it online from anywhere just by following this link: https://www.thepaystubs.com/create-stub
Say Hello to More Space!
Now that you know how long to keep pay stubs, there are probably a few boxes you can clear out of the basement. Just make sure to shred them to keep your information safe, and then enjoy your newly freed up space!
If you loved this article, stick around! We’ve got many more great personal finance posts to educate and entertain you!