Information is one of the building blocks that are crucial and vital in every aspect of an organisation. An organisation cannot function efficiently and effectively, if not at all, without information. From the vision, mission, goals, and objectives of an organisation or a company down to the minor details, it is essential that this information be disseminated to those who need it and deemed relevant.
One of the ways information is organized, and made official is through documents. Every department in an organization has records for storing data, communicating, and transacting with others. One of the responsibilities of organizations and companies is to ensure that their employees or members are well-informed about the organization’s current status and be transparent to them.
Among the information that is most crucial for employees are their income and benefits. One of the documents where this data is itemized and listed is in a paystub document. Most companies provide pay stubs to their employees whenever they have to pay salaries and wages. If you are not familiar with pay stubs, pay stubs are also called check stubs, payslips, paycheck stubs, or earning statements. These terms pertain to the same document.
What is a Paystub?
A paystub is a document wherein your employer outlines the details of your pay. It enumerates wages or salary earned within a specific period. You can also review the taxes and deductions accounted for out of your net pay or paycheck through the paystub. There are different policies on pay stubs per state and country. Depending on where you live, the company you work at will be required to follow the set of rules established in your area. Some companies are bound to adhere to the requirement of providing hard copy payslips, while other employers allow workers to have an option of a hard or soft copy paystub.
The Importance of a Paystub
You may ask why you still need a pay stub when you already have memorized how much you receive every payday and what deductions have been taken out. However, there is more to paystubs than just the list that informs you of your paycheck details.
Here are some of the reasons why you need a pay stub:
Inside the organization
Paystubs are beneficial to both employees and employers. Organiszations can review paychecks using pay stubs as various issues may arise, such as when the income computed from both ends does not match. Let us say an employee makes it a habit to also calculate on their own. When the total does not match theirs, you will have the list of deductions, hours in, and other details in the paystub to confirm everything. Moreover, during tax season, the human resource department or finance department can also use pay stubs to answer forms like the W2.
Outside the organization
Check stubs or payslips are not only used within an individual’s work. While it is standard for employers to give pay stubs, not every company does. Sometimes you will have to create or generate your check stub.
“But if my work does not feel like it is a must to have one, why should I create my own?” you may ask.
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Proof of Income
The most common use of pay stubs is to have proof of income. It is also a standard requirement for various applications, be it for loans, renting, compensation, and more.
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Purchases
Large purchases like condominiums, houses, and buildings will sometimes require you to show recent paystubs or your W2 form. On the other hand, if you are self-employed, your tax return documents may be enough, or you can make a check stub by using a paystub generator.
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Loans
One of the essential requirements in availing of a loan is your proof of income. It shows that you have a source of money that can help you pay your obligations. Your pay stub will serve as an assurance to the lender that you are employed and can pay for the loan that you applied for. Some lenders make your payslips a basis in evaluating your application for a loan, so you will need to generate your own if you are not provided with it.
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Rent
Much like getting a loan, sellers or landlords will need proof of income before they will trust you with the apartment, house, or building you want to rent. Your recent check stubs should be included in what you submit, along with other personal documents.
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Taxes
As a responsible citizen, one of the tasks you must accomplish yearly is filing your tax return. When filing, you will need all of your previous payslips. However, if you have misplaced your pay stubs for the past year, you can use your most recent paystub. If you do not have it, you will need to learn how to prepare check stub for documented wages. It is as simple as A, B, C when you use a paystub generator where you can easily edit your document.
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Compensation
Accidents can happen anytime and anywhere. Sometimes we are unfortunate to have incurred injury because of the accident. If it happened at work, you would be entitled to receive worker’s compensation to help you with medical expenses and compensate for the suffering you had to endure. In some cases, the amount of net pay you receive every month will help determine how much compensation you will receive since it is just as much that you would have been earning if not for your injury.
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Getting a Paystub
There are multiple ways how you can get a pay stub. It can be through direct deposits where you only need to provide your bank information to your employer. However, this will not guarantee you proof of income unless you request one from your company.
Another option includes using a check stub generator. It is the most contemporary and most convenient way of having proof of income. You can make one anytime and in just minutes with the help of a template and a generator. You will only need to type in the required information, and you are done. Make sure to follow the rules set in your state so your paystub will be qualified and recognized throughout all institutions and agencies.
Interesting Related Article: “Why Would a Business Want to Use an Online Pay Stub Creator?“