| Every business must retain certain records on their | | | | - Sex and occupation |
| current and past employees, but which ones and for | | | | - The beginning of the employee's work week Regular |
| how long? On the federal level, there are two | | | | rate of pay for overtime weeks |
| agencies that regulate record keeping. First is the IRS, | | | | - Hours worked each workday and workweek |
| which is responsible for enforcing the Internal Revenue | | | | - Straight-time earnings including the straight -time |
| Code. The second is the U.S. Department of Labor | | | | portion of overtime earnings |
| (DOL). The Wage and Hour Division of the DOL is | | | | - Overtime premium earnings |
| responsible for enforcement of the Federal Fair Labor | | | | - Total wages paid for each pay period including |
| Standards Act (FLSA), the Family and Medical leave | | | | additions and deductions |
| Act (FMLA), the Immigration Reform and Control Act | | | | - Date of payment and pay period covered |
| (IRCA), and the laws governing wages paid by federal | | | | - Records showing total sales volume and goods |
| government contractors. Both of these agencies have | | | | purchased |
| separate rules regarding the type of records that must | | | | - Following records must be kept for two years after |
| be kept and the length of time you must keep the | | | | the last date of entry |
| records. To further complicate your requirements there | | | | - Employment and earnings records, employee hours |
| are numerous state, local and other regulatory | | | | of work, basis for determining wages and wages paid |
| agencies that may require additional record keeping. | | | | - Order, shipping and billing records showing customers |
| State agencies enforce State Unemployment | | | | orders and delivery records |
| Insurance Tax Acts, state wage and hour laws, child | | | | - Wage rate tables and piece rate schedules |
| support and creditor garnishment laws and unclaimed | | | | - Work time schedules that establish hours and days |
| or abandoned wage requirements. Keeping these | | | | of employment Department of Labor In addition to the |
| records accurate and up-to- date is extremely | | | | general requirements of both the IRS and the DOL |
| important to the health of your business. Without the | | | | mandated by several federal acts. They are: Family |
| proper records you will be unable to meet regulatory | | | | and Medical Leave Act |
| requirements should you be audited by any of various | | | | Basic payroll and employee data |
| federal state and local agencies. Failing to meet these | | | | Dates FLMA leave is taken |
| requirements can mean large penalties and the | | | | Hours worked by employee in last 12 months |
| potential for large settlement awards should you be | | | | Hours of FLMA leave for exempt employee |
| unable to provide the required information when | | | | Copies of employee notice to employer |
| requested. Internal Revenue Service The following | | | | Copies of general and specific notes given to |
| records must be kept for four years after the tax due | | | | employees |
| date or the actual date paid. | | | | Copies of policy regarding taking of paid and unpaid |
| - Name, address, occupation, and social security | | | | leave by employee |
| number of each employee | | | | Documents verifying premium payments of employee |
| - Total compensation and date paid including tips and | | | | benefits |
| non-cash payments | | | | Records of FLMA leave disputes between employee |
| - Compensation subject to withholding for federal | | | | and employer Title VII of the Civil Rights Act of 1964 |
| income, social security and Medicare tax | | | | and the Americans with Disability Act of 1990 have no |
| - Pay period for each compensation period | | | | general record requirement under the law, but to meet |
| - Explanation of difference in total compensation and | | | | the requirements all records relating hiring, promotion, |
| taxable compensation | | | | demotion, transfer, layoff or termination, rates of pay, |
| - Employees' W-4 Form | | | | and selection for training or apprenticeship should be |
| - Dates of employment (beginning and ending) | | | | kept for one year from date of action. The Age |
| - Employee tip reports | | | | Discrimination in Employment Act of 1967 requires that |
| - Wage continuation made to an absent employee by | | | | you keep the following records for three years: |
| employer or third party | | | | - name |
| - Details of fringe benefits provided to employee | | | | - address |
| - Copy of employee's request to use the cumulative | | | | - date of birth |
| method of wage withholding | | | | - occupation |
| - Adjustments or settlement of taxes | | | | - pay rate |
| - Amounts and dates of tax deposits | | | | - compensation earned You also keep the following |
| - Total compensation paid to employee during calendar | | | | for one year from the date of action: |
| year | | | | - job applications |
| - Compensation subject to FUTA | | | | - resumes |
| - State unemployment contributions made | | | | - response to advertised job openings |
| - All information shown on 940 | | | | - records related to the failure to hire an individualYou |
| - Copies of returns filed (941, 643, W-3, Copy A of | | | | also must keep all records related to |
| Form W-2 and returned W-2 forms) Department of | | | | - layoff or discharge of an employee |
| Labor The following records must be kept for three | | | | - job orders submitted to a placement agency |
| years after date of last entry. | | | | - employee administrated by employee physical |
| - Employee's name as it appears on social security | | | | exams used to make personnel decisions |
| card | | | | - job advertisements The Immigration Reform and |
| - Complete home address and date of birth if under | | | | control Act requires that you must retain copies of the |
| age 19 | | | | I-9 Form for three years after the date of hire. |