Record Keeping

What are the basic payroll record retention requirements?

The FLSA has two basic record retention requirements.

1. Three Years: Employee records, weekly time summaries, collective bargaining agreements, and the employer's sales and purchase records.
2. Two Years: Basic time and earnings cards, and order and shipping records.

The IRS imposes a four year record retention policy on records related to any IRS filing. The period is measured from the later of the due date of the form or when the form was actually filed. All documents that support the original filing must be maintained for the four year term.