PROOF OF INCOME FOR SELF EMPLOYED INDIVIDUALS

If you’re self employed, you ought to congratulate yourself, this goes to show you’ve made it and you can sustain having to work for yourself and now becoming the boss.

But what are some of the hurdles you have to get by when you’re self employed?

Among them is having to show proof of income. A proof of income is a document you have to show that you’ve made earnings usually for a year or a given period. If you’re a CEO, you can afford to get yourself a yearly paycheck salary.

Self employed female entrepreneur

If you’ve only mostly been an employee thus far before venturing into your SME, then you’re likely to have some check stubs or paystubs with you around.

Or you can record yourself as earning hourly and choose a monthly paystub to record your salary.

The Importance of having Proof of Income if you’re Self Employed

Proof of income is paramount if you want to take out some transactions such as a loan, mortgage, filing income taxes for the year, settling with the IRS or even opening up new bank accounts. Or opening up bank accounts for your employees if you’re ready to begin hiring staff.

Remember that you also need proof of income if you want to get insurance and if you own several properties or if you just want your premises and equipment protected!

Often, a proof of income statement should only contain the following things:

  • Your full name
  • Additional identifying information (like your social security number)
  • Income amount
  • Date
  • Employer name (when applicable)

Proof of income is paramount if you want to take out some transactions such as a loan, mortgage, filing income taxes for the year, settling with the IRS or even opening up new bank accounts. Or opening up bank accounts for your employees if you’re ready to begin hiring staff.

Remember that you also need proof of income if you want to get insurance and if you own several properties or if you just want your premises and equipment protected!

Having proof of income for self employed can absolutely boost your authenticity and it is often the foundation document which allows you to secure all others.

What can be used as proof of income documents if you’re self employed?

Paystubs can be a great source for proof of income if you’re an entrepreneur. In particular, bankers may look for certain things such as your:

1040 Tax Returns – This summarizes all your sources of income. Keep your 1040 forms handy so that you can always track your remittances and these ITR forms always

W2 Forms – You need to get these forms from all your previous managers and bosses if you want an overview of what your earning was like. You can contact them to secure your W2 forms.

Or you can start by making a paystub which has W2 formatting. Remember the IRS website states that any employer engaged in business who pays wages including all amounts of income or Medicare must secure a W2!

At first, it can be tedious but you get the hang of things the more you keep scheduling your payments in a consistent way.

Proof of income letter

If you’re an entrepreneur but you’ve also been employed because, hey you gotta hustle? Then ask them from your former managers!

W2 forms - paramount for proof of income
Click on the image to start making proof of income using our paystub generator!

There’s no reason that you can’t reconnect with them and more often than not, if you were their former protégé they might support you and be more than willing to provide a proof of income letter.

Make sure it’s accurate though and recheck your info such as your complete address, state, zip code and your social security numbers are in check.

If your former workplaces have already been using pay stubs? There’s no reason they can’t issue you this document.

Statements from your banks

You can also track spending and savings and remittances from bank statements! If you’ve got those handy, then make sure to keep them. Bank statements are fantastic resources because you can double check your real time earning and spendings through them.

In short, keep everything that’s handy and has anything to do with financial transaction.

Profit and Loss Statements

These are important if you’ve already been earning in the past. You should keep a list of your spending and your revenues to make sure that there’s transparency in your profit and loss presentations and the more you’re able to file taxes easier and make reconciliations.

Can your paystub templates be used as proof of income?

Yes! If you’re self employed you can use your paystubs to prove how you’re earning.

What templates are best for proof of income?

Various styles of paystubs can be found here. The answer is whatever check stub maker template you need!

In fact if you need W-2 or 1099’s then we also got them here.

Can I preview my paystub?

Yes we have unlimited previews for paystubs. All you have to do is fill in your information and it will be emailed to you!

How much is the cost of pay stubs for self employed?

You can use our Unlimited Pay Stubs template if you’re going to be showing your income and remittances on a regular interval.

But if you need a simple proof of income statement then you can get a single stub for $7.95

Click here to view our Pricing Page.

Can I use a pay stub generator with a yearly income?

Of course! We have a variable income structure and start date for the salaries on our check stubs. Use our check stub generator