Pay stubs are not necessary for employers to give according to the law. It is an explanation when people are not able to provide a pay stub when required. You will find some difficulty for specific dealings. Verification is done for dealings that need a proof of income document.
Pay stubs serve as proof that you have an income. If you do not have a pay stub you cannot comply this requirement on some businesses. Having copies of it may seem unnecessary for you. As an indicator that you are paid correctly, pay stubs are given. As an employee, a pay stub provides information like your contributions, deductions and taxes withheld.
A proof of income is needed when you apply for personal loan. You are promising the creditor that you can pay the loan with that document. This requirement may vary for each lender. A few months’ worth of pay stubs or just one month worth may be required of you.
You will also be asked to provide a proof of income for an auto loan. It also an assurance that you are able to pay for it. The pay stub serves as your proof of income. Finances required for a car purchase spell out how much income one should have to get it. The proof of income can attest that you meet that criteria.
Filing for taxes in the beginning of the year is made easier when you have pay stubs with you. Income received and taxes paid are seen in the last pay stub of the year. The pay stub also serves as proof for your health benefits. Present a pay stub if you want to correct any mistakes found in your wage and tax statement.
A proof of income as well is needed for matters involving house rentals. This will indicate that you can afford the house rental. You will be asked by apartment complexes to show pay stubs from your monthly incomes. How long you have been in your current workplace will be indicated in your pay stub. If you are a new employee for a company, apartment owners might not accept your application. The apartment owners see a shaky source of income. Rental application will highly likely be accepted if you have work for the same company for many years.
Lenders will also look for pay stubs from those who want to refinance their mortgage. As an evidence that you can pay the loan back, the proof of income will indicate that. You will not have much problems in your loan application processing with pay stubs.
Accident compensations too will require you to present pay stubs. The document will tell how much you would not be earning.
This site can be a source for more information about pay stub generators.