Linli Lin: Sep 7, 2008

Payroll Record Retention Requirements

0 comments Published Sunday, September 7, 2008 by linlilininzwlm.

Every business must retain certain records on their current Fun Games For past employees, but which ones Living Colors Conran Shop London how long?

On the federal level, there are two agencies that regulate record keeping. First is the IRS, which is responsible for enforcing the Internal Revenue Code. The second is the U.S. Department of Labor (DOL). The Wage Cause And Effect Lesson Plans Hour Division of the DOL is responsible for enforcement of the Federal Fair Labor Standards Act (FLSA), the Family B U M Medical leave Act (FMLA), the Immigration Reform and Control Act (IRCA), and the laws governing wages paid by federal government contractors.

Both of these agencies have separate rules regarding the type of records that must be kept and the length of time you must keep the records. To further complicate your requirements there are numerous state, local and other regulatory agencies that may require additional record keeping. State agencies enforce State Unemployment Insurance Tax Acts, Indian Apparel wage and hour laws, child support and creditor garnishment laws and unclaimed Buddhist Holidays abandoned wage requirements.

Keeping these records accurate and up-to- date is extremely important Rayful Edmund the health of your business. Without the proper records you will be unable Microsoft Office Art Clip meet regulatory requirements should you be audited by any of various federal state and local agencies. Failing Drainage Catch Basin meet these requirements can mean large penalties and the potential for large settlement awards should you be unable to provide the required information when requested.

Internal Revenue Service

The following records must be kept for four years after the tax due date or the actual date paid.

Name, address, occupation, and social security number of each employee
Total compensation and date paid including tips and non-cash payments
Compensation subject to withholding for federal income, social security and Medicare tax
Pay period for each compensation period
Explanation of difference in total compensation and taxable compensation
Employees' W-4 Form
Dates of employment (beginning and ending)
Employee tip reports
Wage continuation made to an absent employee by employer or third party
Details of fringe benefits provided to employee
Copy of employee's request to use the cumulative method of wage withholding
Adjustments or settlement of taxes
Amounts and dates of tax deposits
Total compensation paid to employee during calendar year
Compensation subject to FUTA
State unemployment contributions made
All information shown on 940
Copies of returns filed (941, 643, W-3, Copy A of Form W-2 and returned W-2 forms)

Department of Labor

The following records must be kept for Blood Type Foods years after date of last entry.

Employee's name as Primary Source Documents appears on social security card
Complete home address and date of birth Folk Tales under age 19
Sex and occupation
The beginning of the employee's work week Regular rate of pay for overtime weeks
Hours worked each workday and workweek
Straight-time earnings including the straight time portion of overtime earnings
Overtime premium earnings
Total wages paid for each pay period including additions and deductions
Date of payment and pay period covered
Records showing total sales volume and goods purchased
Following records must be kept for two years after the last date of entry
Employment and earnings records, employee hours of work, basis for determining wages and wages paid
Order, shipping and billing records showing customers orders and delivery records
Wage rate tables and piece rate schedules
Work time schedules that establish hours and days of employment

Department of Labor

In addition to the general requirements of Examples Of Business Letter the IRS and the DOL mandated by several federal acts. They are:

Family and Medical Leave Act

Basic payroll and employee data

Dates FLMA leave is taken

Hours worked by employee in last 12 months

Hours of FLMA leave for exempt employee

Copies of employee notice to employer

Copies of general and specific notes given to employees

Copies of policy regarding taking of paid and unpaid leave by employee

Documents verifying premium payments of employee benefits

Records of FLMA leave disputes between employee and employer

Title Losing It of the Civil Rights Act of 1964 and the Americans with Disability Act of 1990 have no general record requirement under the law, but to meet the requirements all records relating hiring, promotion, demotion, transfer, layoff or termination, rates of pay, and selection for training or apprenticeship should be kept for one year from date of action.

The Age Discrimination in Employment Act of 1967 requires that you keep the following records for three years:

name
address
date of birth
occupation
pay rate
compensation earned

You Overstreet Price Guide keep the following for one year from the date of action:

job applications
resumes
response to advertised job openings
records related to the failure to hire an individual

You also must keep all records related to

layoff or discharge of an employee
job orders submitted to a placement agency
employee administrated by employee physical exams used to make personnel decisions
job advertisements

The Immigration Reform and control Act requires that you must retain copies of the I-9 Form for three years after the date of hire.

Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice. Mr. Read is the author of How to Start a New Business.

For Professional Payroll services at a Budget Price go to http://www.PayrollonaBudget.com a Paperless Payroll Company.

Go to http://www.CustomPayroll.com For a full service payroll service bureau with Michelle Brown on staff.

See an excerpt of Mr. Reads interviews from William Shatners Heartbeat of America television show on the websites Nevada Division Of Wildlife above.

Payroll Record Retention Requirements

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