How Long Should You Save Your Pay Stubs?

Filing cabinets or folders make good storage places for pay stubs.

Pay Stubs and W-2s Have the Same Information

Most people should keep their pay stubs for one year. From tax year to tax year, as long as the pay stub information matches the information on the W-2 form, no one needs both. Any errors, however, require a corrected W-2c form. People can safely shred all pay stubs after receiving a correct W-2.

Good-Faith Audits Occur After Three Years

Some people prefer keeping their pay stubs for three years, since the IRS has three years to audit good-faith errors. Just in case people misplace their W-2 forms, or simply want the extra proof of income and retirement-plan contributions, three years of saving gives them a sense of security.

Bottom Line

No one needs to keep pay stubs more than one year, as long as they have a W-2 form that matches the pay stub information. Individuals paid weekly or biweekly receive significant paperwork, and keeping pay stubs over one year can become a filing challenge.

References

• Bankrate: How Long to Keep Financial Records
• University of Illinois at Urbana-Champaign: What Do I Do With . . . Financial and Tax Records?