Are Pay Stub Generators Legal? (The Answer Is Yes)

Pay Stub Generator

August 12th, 2021   |   Updated on September 20th, 2021

Are you considering applying for a mortgage, a car loan, or any other type of financing? If this is the case, then you know that financial institutions and lenders need proof of employment in the form of pay stubs.

You will need to turn to a pay stub generator if you work for a startup company or a small business without the resources to invest in accounting software.

However, the question on most people’s minds is whether pay stub generation is an ethical and legal practice. The answer is yes; generating pay stubs is a legal practice. Read on below to understand more about pay stubs.

Why Do You Need A Pay Stub Generator?

There are many reasons why employees need to generate pay stubs. Some of these reasons include:

  • To purchase a vehicle
  • Apply for financing or a loan
  • Buy or rent a home
  • Obtain a credit card
  • For filing tax returns, if your employer hasn’t issued you with a W-2 Form

Employees need to have access to their pay stubs. However, when generating your pay stubs, ensure you use a reputable paystub generator that will help you turn your actual earnings into an accurate statement.

What Are Fake Pay Stubs?

Unemployed individuals often generate fake pay stubs to misguide lenders and banks to get approved for loans.

If you are not employed, and you’re looking to purchase a car through financing, you may not have any documentation related to your employment record. Therefore, most people turn to fake pay stubs by using made-up figures and fabricated business names.

Generating a pay stub using fake information is illegal. No matter how difficult your situation is, it’s advisable to be honest and open with the lender or bank instead of giving false information.

If you share fake pay stubs and you are caught, you may face a federal fine of up to $1 million or a 30-year jail sentence.

Are Pay Stubs Legal For Employed People?

Generating a pay stub using accurate payment and earning information using a real company name is not fraudulent. This is applicable for individuals working in small companies without accounting software to generate pay stubs.

However, you need to approach a genuine and reputable accounting firm that will use your earning information and help you develop a legitimate pay stub.

As long as you present accurate and up-to-date data, the pay stubs generated are not fake. However, if you intend to use the pay stubs for any legal purposes, they must be certified by the business whose name appears on them.

Do You Need A Pay Stub?

Do you need pay stubs, but your company can’t generate them? Ensure you contact a reputable accounting firm with a pay stub maker for assistance. Additionally, ensure you also have accurate pay statements from your employer to help you with pay stub generation.

Would you like to learn other informative tips that will make your life better and easier? Check out other posts here on our website.