Records Retention Guidelines

Are you protected if your company undergoes audits or lawsuits?

There is often confusion among employers concerning the legal requirements for record keeping and retention of employee files and other employment-related records. Each year you may go through your files and get rid of items that you think will not be needed in the future. Below are some records retention guidelines to follow when retaining certain employee files and records for your business.

Federal Record Retention Requirements

IRS/SSA/FUTA documents . . . 4 years

Duplicate copies of tax returns/tax deposits/Returned copies of Form W-2
Employee’s name/address/occupation/social security number
Amount/date of payments for wages, annuities, pensions, tips; fair market value of wages-in-kind
Amount of wages subject to withholding / taxes withheld
Copies of Form W-4, Forms 940, Schedule A (Form 940), 941, Schedule B (Form 941), Schedule D (Form 941), Schedule R (Form 941), 941-X, 943, 944, 945, 945-A, W-2, W-3, 1042-S, 1042-T, 1042, and other returns filed electronically

FLSA/IRCA record retention . . . 3 years

Name of employee/address/occupation/birth date/gender
Hours worked each day/week
Amount and date of payment
Amounts earned for straight time/overtime/additions to/deductions from wages
Form I-9—three years after date of hire or one year after date of termination (whichever is later)

Family and medical leave record keeping requirements . . . 3 years
The following records must be kept for at least three years, in any format, and made available no more frequently than once every 12 months for Department of Labor inspection.

Name, address, occupation, rate of pay, daily and weekly hours worked per pay
Additions to and deductions from wages, total compensation
Dates of FMLA leave (or hours if taken in increments of less than one day)
Plan descriptions/policies and procedures dealing with unpaid and paid leaves
Records of any disputes

FLSA Supplemental record retention . . . 2 years

Time cards
Wage rate tables
Work time schedules
Production/order/shipping/billing records

There are also record retention requirements for documents such as tax records and reports. Check your state’s employment laws, such as workers’ compensation laws, also because they may have record retention requirements or statutes of limitations that are different than federal requirements.

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Records Retention Guidelines For Your Business

Are you protected if your company undergoes audits or lawsuits?

Federal Record Retention Requirements

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