How long must payroll records be kept

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. When a charge is not resolved after investigation, and the charging party has received a notice of right to sue, "final disposition" means the date of expiration of the day statutory period within which the aggrieved person may bring suit or, where suit is brought by the charging party or the EEOC, the date on which the litigation is terminated, including any appeals.

Breadcrumb Home Employers Recordkeeping Requirements. Check how much the National Minimum Wage is Find out how much National Insurance you need to pay for your employees Check how much sick pay your employees are eligible for Check how much you need to pay towards your employee's pension Check how much Maternity Leave you need to pay your employees Check how much Paternity Leave you need to pay your employees.

Step 2 : Make your workplace safe and accessible for employees. Prevent discrimination Make your workplace accessible for employees with disabilities or health conditions Keep employee information and data safe Fire safety Health and safety You also need to make checks when you recruit and employ someone.

Find out what you need to check when you employ someone. Register as an employer and set up PAYE Choose how to run payroll If you decide to run payroll yourself, choose payroll software. Step 4 : Check your responsibilities around workplace pensions. Understand your pension responsibilities as an employer. Step 5 : Get Employers' Liability insurance. Find out about Employers' Liability insurance.

Step 6 : Recruit and employ staff. Employ someone. Is this page useful? A cloud-based or software-as-a-service SAAS approach allows companies to implement new processes faster, update software with greater ease and remove tech support burdens from HR. On the other hand, some professionals find that private on-premises systems offer more control in determining how to use, store and locate data. What factors should we consider when converting personnel files from hard copy to electronic format?

The Compliance Risks of I-9 Software. Compliance guidance is provided for certain types of records such as I-9 forms and OFCCP rules for federal contractors.

For an overview of specific requirements by type of record, see:. Employers need to understand the requirements of the law in the state s where their employees work and define internally what access is permitted in states where there is no regulatory requirement. Some considerations include:. A multistate employer needs a flexible policy, so it is applicable to all employees. For example, a statement such as "Access to personnel files will be provided according to state law" is appropriate.

Access to Employee Personnel File Policy. Employers must implement safeguards to protect personal employee information. Identity theft has become a top consumer fraud issue, and the Federal Trade Commission FTC reports that identity theft tops the list of consumer complaints that are reported every year. Every employer maintains records that are at risk of theft and misuse; therefore, employers should develop processes that protect this sensitive employee information.

How to Prevent Data Breaches. There are numerous federal and state laws that govern retention of employment records. Employers must ensure that all records are maintained, either in hard copy or electronically, for the minimum period of time required.

Often, employers will use a 7-year rule for purging terminated employee files as this typically covers state and federal statutes of limitations; although shorter retention periods may suffice for some records such as I-9 forms and longer periods may apply to other records such as OSHA exposure records.

SHRM has a chart on federal record retention requirements to assist in identifying statutory requirements. How long should written warnings or counseling statements stay on file? After a business closes, what do we do with company and employee records? While most record-retention requirements are dictated by federal or state statutes, there are some situations where no time period is prescribed.

This uniform law has been enacted by a number of states and provides a general guideline in others, although employers should consult with legal counsel to determine their individual compliance obligations and suggested best practices. Once an employer has fulfilled the requirements to retain employment records, an effective disposal plan must be adhered to.

Simply tossing employment records in the trash creates a significant risk of theft or misuse of employee information that may result in regulatory investigations, fines, potential civil lawsuits, bad publicity and damage to the employer's brand. When employment records contain personally identifiable information PII such as a name, address, Social Security number, etc. You may be trying to access this site from a secured browser on the server.

Please enable scripts and reload this page. Reuse Permissions. Page Content. Overview Record-keeping requirements can be confusing given that there are numerous regulations that govern some aspect of employer record-keeping and retention. Records and Reports. You have successfully saved this page as a bookmark.