Posted: Fri Aug 27, 2004 9:46 am Post subject: Employee records retention
Dear Michelle,
Welcome to PayPerShop, I think you may be the first to post a message from the US - I see you are from North Carolina - that's so my UK visitors will not think that you are from Durham in the north of England and give you details of retention periods in the UK!
I'll have to do some research on this for you, so I will come back as soon as I can.
Anyway, just for your information, in the UK the retention period of payroll records is three years prior to the current tax year (April 6 to April 5!!), for accounting records it is six years prior to the current financial year. There are no statutory retention periods for non-payroll/accounting employee records, but our data protection laws require us not to keep records for longer than is necessary for their purpose. _________________ Ian Congreave, PayPerShop owner
There don't appear to be any legal requirement in North Carolina or in the US on the retention of general employee records. There are rules for public records in North Carolina, see
For FLSA purposes, the requirements are as follows:
"How Long Should Records Be Retained: Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records. Records on which wage computations are based should be retained for two years, i.e., time cards and piece work tickets, wage rate tables, work and time schedules, and records of additions to or deductions from wages. These records must be open for inspection by the Division's representatives, who may ask the employer to make extensions, computations, or transcriptions. The records may be kept at the place of employment or in a central records office."
I can't find any specific instructions for payroll records retention periods in the Internal Revenue Code. Secion 6001 only says:
"Every person liable for any tax imposed by this title, or for the
collection thereof, shall keep such records, render such
statements, make such returns, and comply with such rules and
regulations as the Secretary may from time to time prescribe.
Whenever in the judgment of the Secretary it is necessary, he may
require any person, by notice served upon such person or by
regulations, to make such returns, render such statements, or keep
such records, as the Secretary deems sufficient to show whether or
not such person is liable for tax under this title."
If documents are filed electronically or by magnetic media, a copy of the document must be retained or the ability to recreate the document must be retained for three years. That's the nearest I can come to a specific retention period.
I wonder if someone with more experience of US payroll procedures can cast further light on this?
I hope all that helps, Michelle _________________ Ian Congreave, PayPerShop owner
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