What are the consequences of improperly maintaining payroll records?
Althought the fines and penalties vary, they are quite severe. A summary of the fines and penalties are as follows:
- FLSA: A fine of $10,000, imprisonment for up to six months, or both.
- IRS: A fine of $25,000 ($100,000 for corporations), one year imprisonment, or both, plus the cost of prosecution (if the employer willfully failed to maintain proper payroll records).
- DOJ: These fines generally apply to Form I-9. A fine of up to $1,000 can be imosed for each violation.