Short Answer: Employers must keep payroll records for 3 years and timecards for 2 years under the FLSA.
Full Answer: The Fair Labor Standards Act (FLSA) requires employers to maintain certain payroll records for at least 3 years including:
Additionally, the IRS requires employers to keep tax records (such as W-4 forms and payroll tax returns) for at least 4 years. Other regulations, such as those related to OSHA, EEOC, and ERISA, may impose different retention requirements. Employers should create a document retention policy to comply with all applicable laws.
General Federal Standard: Employers must keep payroll and tax records for 2 to 4 years, according to FLSA and IRS requirements.
Link to a legislative resource from trusted sources: U.S. Department of Labor - Recordkeeping Requirements
Full Answer: The Fair Labor Standards Act (FLSA) requires employers to maintain certain payroll records for at least 3 years including:
- Employee information: Name, Social Security number, address, birth date if under 19, sex, and occupation.
- Payroll details: Hours worked, pay rate, overtime, wages paid each pay period, and deductions.
- Timecards and work schedules: Must be kept for 2 years.
- Employment contracts and agreements: Retain for 3 years.
Additionally, the IRS requires employers to keep tax records (such as W-4 forms and payroll tax returns) for at least 4 years. Other regulations, such as those related to OSHA, EEOC, and ERISA, may impose different retention requirements. Employers should create a document retention policy to comply with all applicable laws.
General Federal Standard: Employers must keep payroll and tax records for 2 to 4 years, according to FLSA and IRS requirements.
Link to a legislative resource from trusted sources: U.S. Department of Labor - Recordkeeping Requirements