4 Situations You Need A Pay Stub – Quick Facts

Money makes the world go round, and living in this capitalism-shaped world also means that every person on this planet seeks a higher-paying job. Now, to know precisely how much we make at the end of each month, we get pay stubs as they have all the crucial info we might need.

As for how to check whether they are fake or not, well, it’s actually pretty simple because every single penny should be accounted for, meaning that the first thing to check is whether the end sum is a round number or not and if it is, then the chances are high that it is a fake one. Of course, this is just one plain example of how to check the legitimacy of the pay stub, but some people also wonder about situations when they need pay stubs, so let’s go through some examples.

1. Loans

Source: zeroplusfinance.com

Knowing precisely every single aspect of your paycheck is one thing and something most people have trouble with, but when it comes to when you need to have a pay stub, well, it all depends as there are several occasions, and this is probably the most common one. Namely, everyone who has ever applied for any type of loan is well aware of how complicated the procedure is, and here, we are not talking about the process once you get to the bank, as it is more about gathering all the papers required.

Now, among many other documents and paperwork, having a pay stub is also something of a must, as it is the only way to get detailed info about how much money you make, which affects how big of a loan you can get. Besides that, it’s about having proof of income, which is why it’s required, and one usually cannot get a loan otherwise. As for whether you can provide just any pay stub or the most recent one-it depends on the bank policy, so always check all the facts before actually applying, just to make the entire process easier and faster.

2. Dealing with IRS

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Okay, no one wants to have any issue with IRS, and it’s because they are rigorous, and even one small mistake can mean that you have to pay pretty high fines and fees as compensation. Of course, having a pay stub can be of great help in order to avoid any problems with taxes. It all starts with filing it at the beginning of every year, and since there are so many details on pay stubs, it can make the entire filing process much more efficient.

Accuracy is a must here, but that doesn’t mean how it should be a time-consuming job, and pay stubs can help a lot. On the plus side, you can see them as proof of income and proof of health benefits. Besides all that, the last one you get at the end of the year will have all the details, which is yet another way it can help you file these forms.

3. Buying a car or a bike

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Buying a new car or a bike is not a cheap investment and sometimes requires us to apply for a loan in order to get enough money for it. The procedure is pretty similar to applying for the personal one, we need to pay it back within the agreed period, and every delay can make us face legal consequences. Of course, no one will believe that we will be responsible and pay it back if we only promise that, and they will need proof that we are able to do that.

In most cases, providing them with the pay stub will be enough as they can see our monthly incomes and ability to pay the loan back. The amount that we can take as a loan depends on our monthly or yearly earnings, which can be seen in the pay stub, so it is enough to provide them with it, and it is most likely that we will get money to buy our dream car or bike. Of course, the higher our monthly earnings are, the more money we can borrow and have better options.

4. Moving to a new home

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Moving to a new home can be a stressful experience, and renting it can require proof that we can pay monthly rent as many landlords want to be sure they will get their money in time. Once again, paystubs are perfect for that as they do not only contain information about our last salary but can tell the landlord much more and provide them with all the necessary information.

Regarding that, the landlord will be able to check for how long we are hired in the same company and has the right to reject people who are working for a few weeks. Although it might seem unfair, getting a job a month before trying to rent a home does not guarantee a stable source of income, and they cannot be sure that you will be able to provide enough money to pay the rent every month. Working for the same company for years proves much more than the fact you have enough money, as the landlords can assume you are a responsible person and the chances of getting that certain home are much higher.


As you can see, paystubs are documents that can be useful in different situations as they can provide much information to anyone who knows to read them. Thanks to that, we can use them as proof of income every time we need them, no matter if we need to show our monthly or yearly ones.

On the other side, they can also show us whether our employer has paid us correctly for our hard work, so throwing them away is never a good idea. Instead of throwing them away, it is much better to keep them in a safe place because we can never know when we will need them, as there are many situations they can be used.