Payroll Record Retention Requirements

All businesses must retain certain records on their current and past employees but which companies and for how long On the federal level there are two agencies that regulate record being positive. First is the IRS which is responsible for enforcing the inner Revenue Code. The second is the U.S. Department of Labor DOL. The Wage and Hour Division of the DOL is liable for enforcement of the Federal Fair Labor Standards Act FLSA the Family and Medical leave Act FMLA the Immigration Reform and Control Act IRCA along with the laws governing wages paid by federal government roofers.

Virginia Background Check of these agencies have separate rules regarding the type of records that will be kept and the length of time you must keep the records. To assist complicate your requirements there are numerous state local and other regulatory agencies that have to have additional record keeping. State agencies enforce State Unemployment Insurance Tax Acts state wage and hour laws child support and creditor garnishment laws and unclaimed or abandoned wage requirements. Keeping these records accurate and upto date is valuable to the health of the business.

Without the proper records you will be unable to meet regulatory requirements an individual be audited by any of various federal state and native agencies. Failing to these requirements could mean large penalties as well as the potential for large settlement awards an individual be unable to produce the required information when requested. Interest rates The following records must be kept for four years after the tax due date and even the actual date compensation. Name address occupation and social security involving each employee Total compensation and date paid including tips and noncash 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 Form Dates of employment beginning and ending Employee tip reports Wage continuation made to an absent employee by employer or 3rd party Details of fringe benefits provided to employee Copy of employees request to use the cumulative approach to 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 Copies of returns filed W Copy An of Form W and returned W forms Department of training The following records must be kept for three years after date of last entry.

Employees name also appears on social security card Complete home address and date of birth if under age Sex and occupation The beginning of the employees work week Regular rate of pay for overtime weeks Hours worked each workday and workweek Straighttime earnings including the straight time portion of overtime earnings Overtime premium earnings Total wages paid everyone pay period including additions and deductions Date of payment and pay period covered Records showing total sales volume and goods purchased Following records should 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 for the general requirements of both the IRS and the DOL mandated by several federal acts.