Personal Finance

Why Keep Old Pay Stubs?

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  • Sep 30th, 2007 5:22 pm
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Why Keep Old Pay Stubs?

I have lots of old pay stubs from 2002-2004. I am thinking of just shredding these since they are sitting around and taking up space.

Is there any reason for me to keep these things around?
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As long as you keep your T4 slips, then the pay stubs are mostly redundant. However, you might have unusual pay deductions that has nothing to do with taxes that you still may want to track (if you don't have other documentation of these deductions). For example, if your salary was garnished, you might want to keep track of how much was garnished versus paid to you. Even so, you might only want to keep the last pay in December, which should have year-to-date totals, rather than each individual pay stub.
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If you were in school and working, having paystubs that show that you were working while in school might help you with a future EI claim.
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If you don't have a group health plan, you really only need to keep your paystubs for the past year so that when you get your T4 you can verify your income and CPP numbers add up correctly.

If you do have a group health plan, those deductions from your cheque are not on your T4, so if you claimed that medical expense (which you should), then you should keep those paystyubs for the 7 years the CRA could go back on you in case of an audit.

EDIT: above also applies if you do a pre-authorized charity donation from your cheque, which some big companies allow as well.
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brunes wrote:
Sep 29th, 2007 9:13 am
If you don't have a group health plan, you really only need to keep your paystubs for the past year so that when you get your T4 you can verify your income and CPP numbers add up correctly.

If you do have a group health plan, those deductions from your cheque are not on your T4, so if you claimed that medical expense (which you should), then you should keep those paystyubs for the 7 years the CRA could go back on you in case of an audit.

EDIT: above also applies if you do a pre-authorized charity donation from your cheque, which some big companies allow as well.
Strange, my pay stubs from this year don't show any deductions for group health but I do have coverage. Is this normal?
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brunes wrote:
Sep 29th, 2007 9:13 am
If you do have a group health plan, those deductions from your cheque are not on your T4, so if you claimed that medical expense (which you should), then you should keep those paystyubs for the 7 years the CRA could go back on you in case of an audit.
http://www.taxtips.ca/filing/medicalexp ... credit.htm

"Medical expenses for the taxpayer, the taxpayer's spouse or common-law partner, and dependent children under 18 are claimed on line 330 of the federal tax return. Only expenses in excess of the lesser of $1,925 (federal, for 2007) or 3% of net income can be claimed. "
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chococrazy wrote:
Sep 29th, 2007 1:17 pm
http://www.taxtips.ca/filing/medicalexp ... credit.htm

"Medical expenses for the taxpayer, the taxpayer's spouse or common-law partner, and dependent children under 18 are claimed on line 330 of the federal tax return. Only expenses in excess of the lesser of $1,925 (federal, for 2007) or 3% of net income can be claimed. "
Yep. The threshold starts becoming lower around 65K.

So basically - if you make 65K or more a year, your medical expenses have to all add up to more than 1925 to claim them the difference.

This is why the spouse who makes the lower income usually claims all medical for both of you. This is allowed. For example, if your spouse only makes 30K, her threshold is only $900. So if you $100 a moth into a health plan, you can claim $300 a year of that in her name. Along with any other deductable you paid to the company for prescriptions, glasses, dental, etc.
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Jucius Maximus wrote:
Sep 29th, 2007 1:09 pm
Strange, my pay stubs from this year don't show any deductions for group health but I do have coverage. Is this normal?
This sounds weird. Such deductions from your payroll should be itemized.

Otherwise how do you know what you are paying and what you can claim?
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brunes wrote:
Sep 29th, 2007 1:46 pm
This sounds weird. Such deductions from your payroll should be itemized.

Otherwise how do you know what you are paying and what you can claim?
I see the following things on my ADP stub:

Earnings
Regular (My Normal Hours)
STR Time (Overtime Hours)
Stat Holiday
Vacation Pay
Total Earnings
Less Taxable Benefits (Shown as $0.00 cumulative total for 2007)
Total Gross

Deductions
Govt Pension
Federal Tax
Total Deductions


Nothing on there shows deductions for group health. Strange, especially considering I have already done a successful claim this year for dental.
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check your other pay stubs. on mine, they deduct once a month.
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ai_c wrote:
Sep 29th, 2007 2:43 pm
check your other pay stubs. on mine, they deduct once a month.
My stubs all show Year-To-Date figures for all of these numbers, and the total 'Less Taxable Benefits' for 2007 is $0.00. I have looked at all from the last 2 months and there's no indications of deductions for health insurance.
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Jucius Maximus wrote:
Sep 29th, 2007 2:45 pm
My stubs all show Year-To-Date figures for all of these numbers, and the total 'Less Taxable Benefits' for 2007 is $0.00. I have looked at all from the last 2 months and there's no indications of deductions for health insurance.
what about from last 3 months? any deductions for health Insur?
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bobbycat wrote:
Sep 29th, 2007 7:47 pm
what about from last 3 months? any deductions for health Insur?
Every pay stub since the beginning of 2007 shows 0.00 for 'less taxable benefits.' Nothing specifically saying health insurance. And I did not have the group coverage until this year.
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looks like they forgot about you, better check with your hr. did you receive a booklet regarding the insurance company and some card showing your name, plan or group number? that's your cue that you're enrolled.
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I thought that health insurance by employers is not a taxable benefit.
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