Business Record Retention Guide - ADP

1 STATE. State Income Tax - Retention of Employer Records Generally, the minimum Retention period begins to run from the later of the date the taxes or returns are due, paid or filed. Most states with an income tax withholding requirement, require employers to maintain records of the following kinds of information: employee name and address, social security number, and occupation Business Record Retention Guide employer's copy of Forms W-2. the amounts and dates of wage, bonus and other compensation payments, and tax withheld records of employer tax deposits records of periods and location of employment employee withholding exemption certificates (such as Forms W-4). Generally, states will allow these tax records to be maintained on magnetic tapes, diskettes, and CD-ROM, as well as on microfilm, instead of retaining them as space-consuming paper records.

2 Employers should check the specific requirements of each state where they do Business . Minimum Retention Period By State (in Years). Alabama ..5 Montana ..5. Alaska ..N/A Nevada ..N/A. Arkansas ..6 New California ..4 New Colorado ..4 New Mexico ..4. Connecticut ..4 New York ..4. North Dist. of Col ..5 North Dakota ..4. Florida ..N/A Ohio ..4. Georgia ..4 Oklahoma ..4. Hawaii ..3 03-118-021 3M Printed in USA 2001, 2000, 1999, 1998 Automatic Data Processing, Inc. Idaho ..3 Pennsylvania ..4. Illinois ..4 Puerto Rico ..5. Indiana ..3 Rhode Island ..4. Iowa ..5 South Carolina ..**. Kansas ..3 South Dakota ..N/A. Kentucky ..4 Tennessee ..N/A. Louisiana ..3 Texas ..N/A. Automatic Data Processing, Inc. Maine ..4 Utah ..3. Maryland ..3 **. Massachusetts ..3 Virginia ..3. West Wisconsin ..4. One ADP Boulevard Roseland, NJ 07068.

3 N/A indicates that the state has no state income tax withholding requirement. **indicates that the state has no records- Retention provision. ADP is not responsible for any Retention period inaccuracies that this Guide may contain. Please be aware that Retention period regulations are subject to change. FEDERAL FEDERAL STATE. Federal Requirements - State Unemployment Immigration INS Form I-9 (Employment at least 3. Retention of Employer Records Reform and Eligibility Verification Form) years from Compensation Insurance . Control Act must be signed by the new- date of hire Retention of Employer Records hire and the employer, and or 1 year Internal Any records relating to payments at least 4. be readily available upon after ter- The states are not uniform as to when the minimum Retention Revenue made to employees, employer tax years after request.

4 MiInation periods listed below begin to run, but often the period begins Service reports and deposits covering the pay- Federal income tax withholding, ment, at the end of the month following the quarter to which the social security, medicare and deduction Record relates. FUTA taxes. For example: of taxes or Occupational Log & Summary of Occu- at least 5. employee's name, address, due dates Safety and pational Injuries and Ill- years after Most states require employers to maintain records of the follow- occupation and social of returns Health Act nesses, briefly describing end of year ing kinds of information, whether or not the employer is liable security number (OSHA) recordable cases of injury to which under the state's unemployment compensation law the date of each wage payment and illness, extent and out- records employee's name and address, social security number, dates made to the employee (in- come of each incident, and relate of hire/separation/re-hire, payment dates for cash and non- cluding tips) summary totals for calendar cash wages, and the dates and hours worked.

5 Wages subject to with- year. holding for Federal income Such records must be open for inspection by state unemploy- tax, social security and ment officials at any reasonable time. Employers should check medicare taxes, the state's employment handbook for specific requirements. employee's Form W-4, Employee Records providing basis not less than employee's hire and Minimum Retention Period By State (in Years). Retirement for all required plan descrip- 6 years after termination dates Income tions or reports, or necessary filing date of tip reporting records Alabama ..5 Montana ..5. Security to certify any related infor- documents, any fringe benefits pro- Alaska ..5 Nebraska ..4. Act mation, including vouchers, based on the vided to the employee Nevada ..4. (ERISA) worksheets, receipts and information copies of all Federal tax Arkansas.

6 5 New Hampshire ..6. applicable resolutions. they contain returns filed, Copy D of California ..4 New Jersey ..5. employee Form W-2, and Colorado ..5 New Mexico ..4. Forms 940, 941, 943, and Connecticut ..4 New Records pertaining to each as long as 1099-R. North Carolina ..6. employee-participant in the relevant Dist. of Col ..5 North plan for determinations of Ohio ..5. benefits that are due or may Georgia ..7 Oklahoma ..4. become due Dept. Records must be kept on all Hawaii ..5 of Labor employees, and must be retained Idaho ..3 (Fair Labor for either two or three years, as Illinois ..5 Puerto Standards illustrated below: Americans With Any personnel or employ- at least 1 year Indiana ..5 Rhode Island ..4. Act) employee's name, home at least 3 Disabilities Act ment Record made or kept after the date Iowa.

7 5 South Carolina ..5. address, date of birth (if years from by employer, including Record was Kansas ..5 South Dakota ..4. under 19), gender and date of last application forms and records made or per- Kentucky ..6 Tennessee ..7. occupation data entry concerning hiring, promo- sonnel action Louisiana ..5 Texas ..3. regular rate of pay and its tion, demotion, transfer, taken, which- Maine ..4 Utah ..3. calculation layoff or termination, rates ever is later Maryland ..5 hours worked each weekday of pay or other terms of Massachusetts ..4 Virginia ..4. and workweek compensation, and selec- straight-time earnings, and tion for training or appren- West overtime earnings ticeship inclusions and exclusions from wages (such as bonus, withheld taxes, etc.). date of payment and the Age Discrimina- Payroll or other records at least 3 years ADP has over 450,000 payroll clients, pays 29 million people period covered tion in Employ- containing each employee's worldwide on their payday and printed and delivered over 44.

8 Ment Act name, address, date of million year-end tax statements in North America. birth, occupation, rate of basic employment and at least 2 pay, and compensation In the past 12 months, ADP electronically moved over $450 billion earnings records, time years from earned per week to tax authorities and direct deposit accounts. cards, piecework records date of last records substantiating add- data entry Call on ADP for accurate and timely handling of your payroll itions or deductions from Personnel or employment at least 1 year requirements to withhold the taxes, make the tax deposits and wages, such as wage records relating to (for after date of prepare/file your wage and tax reports. assignments, garnishments example) job applications, personnel action promotion, demotion, to which Record Call our toll-free number or visit us at transfer, physical exam relates results, and job-placement 800 225-5237.

9 Test results. ADP is a registered trademark of ADP of North America, Inc. PAYROLL SOLUTIONS HR SYSTEMS EMPLOYER TAX & REGULATION MANAGEMENT. BENEFIT PLAN ADMINISTRATION TIME & LABOR MANAGEMENT RETIREMENT/401(K) SERVICES.