Corporate Wellness Blog

Ever set out to organize and dispose of old staff member files and paperwork in the office? the job is tougher than it seems.

Best practice – Develop a records retention policy as your first step. A host of federal and state laws specify how long you must retain pay- and benefits-related documents.

Compliance is essential if a current or former staff member sues or the DOL, IRS or the state audits your records.

Here’s a records-retention schedule recommended by employment lawyer Jacqueline McManus –

• Retain for two years staff member personnel files, including performance reviews and training.

• Hold these for three years –  wage records, including time cards, base pay and overtime wage-rate calculations and records explaining wage diferentials for personnel performing the same job, and hold I-9 forms for three years from hire date or one year after termination, whichever is later.

• Keep these four years –  all Payroll documents, including – home address records, and all wage records, including weekly OT earnings, straight time pay, deductions, bonuses, pay period designations and payment dates.

• Use a five-year retention window for employee health info like medical and first-aid records from on-the-job injuries, and alcohol and drug testing records.

• Keep this benefits data for six years (or one year after plan termination) –  elections and enrollment forms, benefit change documents, and COBRA notices.

• Retain 401(k) files indefinitely.