How long keep check stubs

Of course, a little space is worth it if it buys you some extra security. Holding on to your pay stubs certainly streamlines your tax-filing process, but it can also provide a paper or digital trail that's worth much more than its physical weight in sweet, sweet peace of mind.

But you don't have to toe the line between "playing it safe" and "total pack rat. Keep in mind that the Federal Fair Labor Standards Act doesn't require employers to provide employees with pay stubs, and a handful of states including Alabama, Florida, Georgia, Ohio, Tennessee and others, don't require it either. While most states do impose at least some sort of pay stub requirement, you may have to get in touch with your employer to get pay stubs at all.

Though there's no hard-and-fast rule for holding on to pay stubs, experts and financial institutions agree that you should keep them for about one-year minimum and roughly six-years maximum. There are no rules etched in stone for keeping pay stubs but there are, fortunately, some general rules of thumb. At a minimum, you should hold on to your pay stubs for a year, or at the very least, until you can verify that they match your W-2 with complete accuracy. That's the low end. The maximum, most conservative recommendation is to keep them until there is a little-to-no risk of being audited by the IRS.

Unless you're just into financial record-keeping, tax purposes — chiefly safeguarding yourself against actions from the Internal Revenue Service — are the key incentive for hoarding pay stubs in the first place.

Regarding securing your records for a potential audit, take it straight from the horse's mouth; the IRS says, "Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. For the most part, audits six years after the fact only happen when you significantly under-report your income.

The Federal Trade Commission takes a slightly more cavalier approach on pay stubs, advising more toward the low end of storage times. When it comes to your pay stubs, they recommend that you "shred 'em after checking them against your W Best balance transfer cards. Best student credit cards. Best starter credit cards. The best online brokerages for beginners. The best investment apps. The best stock trading apps. Best robo advisors. Average stock market return. Car insurance. Life insurance. Best cheap car insurance.

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Many people struggle to stay organized at home. This can make tax season feel like a complete nightmare. However, there are many methods of records keeping and personal organization that may help. Everyone is different, and it often takes a few tries before you feel satisfied with a new system.

For personal records keeping, it is also important to keep your own pay stubs for six-seven years. When it comes to pay stubs, the answer to both those questions above is: yes! You can also use those general questions when it comes to other documents you are unsure about keeping or shredding. When trying to decide what to keep, remember that it is important to hold onto financial records. Why should individuals hold on to pay stubs if their employer must keep pay records on file?

It is important that both you and your employer keep track of these financial records. It may be a good idea to keep pay stubs and other important financial documents in a separate filing cabinet at home. If you prefer, you may even choose to buy a fireproof filing cabinet just to be extra safe. For extra security, buy a filing cabinet with a lock. There are many different types and styles of filing cabinets to suit every budget and personal preference.

Whether you are an employee or a business owner, keeping financial records for six or more years can seem like a daunting task. There are do-it-yourself methods as well as organizations that will help make this task seem less overwhelming. Blue-Pencil empowers Canadian organizations to reach new heights with friendly and efficient document management services.

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