Why Do You Need Pay Stubs? How to Properly Use Pay Stubs

Example of why you need paystubs for rental agreements

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Pay stubs are important for both employers and employees for many reasons. As an employer, keeping accurate records of payments, hours worked, and employee history will help you during an audit. Beyond that, it’s just smart business.

For your employees, there are many reasons why they need payroll check stub information. This info helps your employees with loan applications, rent, mortgage, and more. Continue reading below for a more thorough explanation of what to do with pay stubs.

Reasons You and Your Employees Need Pay Stub Information

Loans and Lending

Whether it’s a personal loan, auto loan, or mortgage loan; your employee will need accurate and thorough payment information to prove their income. It’s your responsibility to have this information available for them. This is especially important if you’re not providing pay stubs. You will have to use your own payroll data and provide it to the employee in a way that is easy to read.

This is one reason why we recommend providing traditional pay stubs to your employees. If you’ve been giving them pay stubs for years and they’ve been keeping them, they’ll have all the information they need to apply for the loan without having to go through you for it.



When your employee files their taxes at the beginning of the year, having pay stubs will show their income throughout the year. If they have the last pay stub it will provide them with a total income as well as how much they’ve paid in taxes. This can save them time and help if they’re hiring a company to do their taxes for them. Even the most basic pay stub will contain that information.


A paycheck stub provides proof of income for an employee that is trying to rent a place to live. To rent an apartment, many landlords do income checks to ensure that the person can afford to live there. A pay stub is a quick and easy way for them to show the landlord that they make enough money to afford it and they’ve been consistently working for a certain period of time.

Legal Compensation

If your employee is ever involved in an accident that prevents them from returning to work, having an advanced pay stub will contain a lot of the important information required by the attorney. It serves as proof of what they were making after all deductions. The employee will need to provide this information to ensure they’re properly compensated.

Knowing the proper use of pay stubs is important as an employer because it helps you understand why you’re putting effort into creating these little pieces of paper. It might not mean as much to you, but it’s valuable to your employees. If you want to spend less time manually creating pay stubs, generate them today using the pay stub generator from PayStubs 365!

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Using Pay Stubs as Proof of Income

Proof of income is used by landlords, banks, car dealerships, and more to prove that a prospective client has a steady income and will have no trouble making timely payments. One of the easiest ways of providing this proof is

How Do You Get Started?

Our‌ ‌pay‌ ‌stub‌ ‌generator‌ ‌is‌ ‌easy‌ ‌to‌ ‌use:‌ ‌

1. Select‌ ‌from one of our four templates.
2. Fill‌ ‌in‌ ‌the‌ ‌blanks‌ ‌with‌ ‌the‌ ‌information‌ ‌required.
3. Preview‌ ‌your‌ ‌pay‌ ‌stub,‌ ‌pay,‌ ‌and‌ ‌print.‌