How Long Should You Keep Paystubs?
For a precise answer, For four years. This is due to the IRS obligation. Employers are therefore legally required to “keep records of employment taxes for at least four years after filing the [fourth] quarter for the year.” In addition, according to the Fair Labor Standards Act and Age Discrimination in Employment Act The pay stub records should be maintained by an employer for three consecutive years if not longer. Additionally, there must be at minimum two years of documents that show the wage rate, job evaluations and merit systems as well as security systems. There’s a foundation to explain the different wage rates for various employees. This assures that there aren’t unfair wage practices within the company, like wage disparities based on age or sexuality.
Do you Need a Paystub?
Yes, you can. A pay stub isn’t only a legal requirement and is a crucial document that is required both from the perspective of an employee and employer’s viewpoint. An accounting of all wages paid ensures consistency and avoids any discrepancies within the company. It also builds trust between the employer as well as the employee since they know exactly where the hard-earned cash is going.