How long payroll records should be kept

Organizing records by year and file type is a good way to start, and each year when payroll records reach their throw-out date, shred them. Payroll records are considered protected information. While each state sets its own rules, every state has limitations on who is permitted to view the files. Payroll records are typically included in employee personnel files. They can be stored and classified alongside personal information, employee identification information, and similar details and files.

In most states, direct supervisors, HR personnel and the specific employee named in the file are permitted to view the records as needed. One type of file should not be included in the standard personnel records: medical records. They are governed by different regulations , and there are federal rules concerning how they can be stored and viewed.

Payroll records can be shredded when they are no longer needed, and there are certain recommendations about the best way employers can dispose of this sensitive information.

Before destroying documentation, always double-check that the records are no longer necessary or required to be stored. Assuming that it's OK to dispose of the information, the most reliable means is to enlist a shredding service. They will ensure the documentation is destroyed beyond recovery. This notice recommends that shredded data be reduced to particles no larger than 2.

To properly delete electronic records, it is not enough to simply hit a delete keystroke on data-management software. Deleted data can be reconstructed. Secure deletion is possible on any device, but it will typically require third-party software. Many viable options exist. As long as the information undergoes a secure delete, it should prove sufficient.

Simone Johnson. Your business needs to keep payroll records but for how long? Here's what you need to know about storing payroll records. Organizing your payroll records by year and file type is a good way to store them.

The best way to securely dispose of payroll documents once they've reached their throw-out date is to shred them. Knowing which documents the IRS and U. Department of Labor require you to keep, and how long they require you to keep them, is key to properly managing your payroll documents. Preserving payroll records is a good way to ensure you have internal control of your company. What are payroll records?

What are the payroll record policies? Payroll records typically contain the following information: The employee's full name and Social Security number Address, including ZIP code Birthdate, if younger than 19, and sex Occupation Time and day when employee's workweek begins Hours worked each day Total hours worked each week Whether the employee is salaried or paid hourly Regular hourly pay rate Total daily or weekly straight-time earnings Total overtime earnings for the workweek All additions to or deductions from the employee's wages Total wages paid each pay period Date of payment and the pay period covered by the payment Forms W-2, W-3, W-4, W-5 Forms and Records of benefits Why should I keep payroll records?

Compliance Keeping payroll records for the appropriate amount of time is in your best interest, because failure to do so can lead to expensive fines and penalties if the IRS ever audits your company. Financial control Preserving financial statements also ensures you have internal control of your company.

Staff management There's another important reason why your payroll and personal records should always be up to date. How long should you store I-9 forms? How long should you keep k records? In addition, employers must keep for at least two years all records including wage rates, job evaluations, seniority and merit systems, and collective bargaining agreements that explain the basis for paying different wages to employees of opposite sexes in the same establishment.

These requirements apply to all employers covered by Federal anti-discrimination laws, regardless of whether a charge has been filed against the employer. When an EEOC charge has been filed against your company, you should retain personnel or employment records relating to the issues under investigation as a result of the charge, including those related to the charging party or other persons alleged to be aggrieved and to all other employees holding or seeking positions similar to that held or sought by the affected individual s.

Once a charge is filed, these records must be kept until the final disposition of the charge or any lawsuit based on the charge. You need to be able to evidence that your employees are taking their annual leave. You therefore need to ensure you keep these records.

As they will be related to HMRC tax and national insurance you may consider keeping them for three years. Under the Health and Safety at work Act HSAW you are required to undertake reporting of accidents, injuries, diseases and dangerous occurrences.

You should also keep a record of any Health and Safety training or work station assessments. This ensures you have evidence to demonstrate to the Health and Safety Executive that you are meeting your obligations under the HSAW Login to save this checklist to your profile for future use — as you work through the list, any checkboxes that are ticked or unticked will be automatically saved to your profile. To register to join and enjoy the benefits of membership click on the link at the top right of the page.

It will only take a few minutes to create your profile. Login or Register. It is good practice to use passwords on files relating to personal data. This should also include any files being sent by email. Avoid using generic, team or departmental passwords. Whilst this may make life easier for team members, it also means that all staff can potentially view everything. Remember to create different passwords where appropriate. It is good practice to change passwords regularly, particularly when people leave the team or company.

You should always make sure that any personal or sensitive data is accessible to only those that need it.

This is not recommended, even if it is password protected. A portable hard drive is easy to steal and usually easy to hack into. AAT Business Finance Basics are a series of online e-learning courses covering the core financial skills every business needs.

How long should I keep records relating to my staff for?