If you are thinking of starting a business, it is advisable to know everything you will be getting yourself into as discussed on this page, including the rules that govern record keeping. One of the pieces of information that an employer is required to retain is are identifying paperwork and information on hours worked and earnings on this website. However, this does not mean you have to keep them forever, there is a specific duration for that but just how long should keeping these sensitive documents take? Continue reading to learn the answers to all these questions.
When you are running a paper-based business that lacks electronic record keeping, your offices will likely be cluttered since the law requires your to keep your employees’ paystubs for a minimum of two years; paystubs, piecework tickets, time cards and wage rate tables all have to be kept for at least two years. One of the most important things to remember is that the minimum two year duration only applies for federal purposes; state regulations may state otherwise, and you should research before discarding any these sensitive information.
The next question you should find an answer to is where to keep these sensitive documents; the answer is very simple; these documents need to be kept in a safe location that is easily accessible because you never when you may have to retrieve them. Another thing you should know about where you decide to keep this sensitive information is security; in as much as the place has to be easily accessible for convenience, it should has restricted access.
You are not only keeping paystubs and other information relating to working hours but also the sensitive information embedded in them like social security numbers, which is why you should pay for the latest security systems and ensure there is restricted access. If you are thinking these are the only documents you are required to keep, you couldn’t be more wrong because there are some like payroll records and sales records that you are usually required to keep for longer than two years.
Other important documents like purchase and sales records should be stored in the same location as the paystubs and other employee-related documents and given the same level of security. If you have been having questions about keeping employee paystubs, here are some of the answers and important reasons to keep them around for the required duration. Now you know exactly how long you should keep employee paystubs.