How Long Should a Company Keep Payroll Records?

Keep payroll records as long as you can.

At Least Six Years

In general, state and federal law requires that businesses keep payroll records at least six years, according to Cash Miller of BestManagementArticles.com. Ideally, if you can afford the administrative costs of space, you should hold on to payroll records for more than six years.

As Long as the Business Exists

You should keep company payroll records indefinitely in case your company comes up for an audit or a former employee has a question about past payroll, according to the FinWeb website. In addition, you may undergo an Internal Revenue Service audit and need payroll records, since taxpayers bear the burden of proof to show that they paid their employment taxes.

Bottom Line

You do not have to keep company payroll records longer than six years. But you should store them for as long as possible in case you need evidence for any disputes that arise, such as tax problems, according to the IRS.

References

• Best Management Articles: How Long Do You Need to Keep Business Records?
• FinWeb: How Long Should You Keep Your Business Records?
• Internal Revenue Service: Publication 583

Resources

• Read this Article in Spanish