How long do you keep Payroll Records?

How long do you keep Payroll records? If the IRS ever comes calling to check on your company’s payroll history, the government could ask for records from years ago. In addition to keeping certain records for tax purposes, you may also be required to retain information under the Fair Labor Standards Act, as well as other federal and state laws.

Paying employees involves more than just issuing checks. You also need to keep accurate records on each employee for a specific amount of time. These records must include details, such as name, address, occupation and Social Security number. Your business must also retain records about compensation, such as the date paid, pay period, tips, non-cash payments, compensation subject to withholding and payroll taxes, and details about fringe benefits. In addition, you must keep copies of pertinent federal forms filed. Recordkeeping isn’t just required under tax laws.

A number of federal, and possibly state, laws require some or all employers to retain certain records. For example, you may have responsibilities under the Fair Labor Standards Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, the Immigration Reform and Control Act, the Occupational Safety and Health Act and the Employee Retirement Income Security Act. This is a daunting task to know how long to keep payroll records.  To make matters worse, each law has its own statute of limitations for recordkeeping.

Mistakes can lead to costly penalties.  Keeping track of all these payroll-related records is time-consuming and stressful. There is an easier way. Contact Vision HR to handle your payroll. That way, recordkeeping will be done automatically. We make your life easier … because we do all the work.

We now offer our services such as payroll recordkeeping in Titusville FL and surrounding areas.