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Requirements for Keeping Paycheck Records
Employers keep paycheck records to meet state and federal storage requirements. Here's how to manage and store records that pertain to payroll.
Table of Contents
Federal law requires employers to keep payroll records for three years and copies of payroll taxes for four years. However, depending on your state, you may be required to keep payroll records for as long as six years. While you can store these documents in paper form, electronic payroll record storage is a much better choice, helping you stay organized and create a meticulous paper trail.
We’ll walk you through the different types of paycheck records, state and federal storage requirements, as well the different ways your business can manage records to avoid unnecessary employee issues, awkward meetings with your accountant and IRS audits.
Editor’s note: Looking for the right payroll software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.
What are paycheck records?
Paycheck records are all the documents associated with payroll. They may include onboarding documents, direct deposit authorization forms, pay stubs and documents related to employee benefits.
Payroll records also include personal employee information, such as pay rates, tax deductions and whether employees are paid hourly wages or a salary.
Paycheck recordkeeping FAQs
- California: Payroll records must be kept for six years.
- Illinois: Payroll records must be kept for five years.
- New York: Payroll records must be kept for six years.
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