Records You Must Keep
If you have employees who are covered by the federal minimum wage, equal pay, and overtime provisions, you must maintain and preserve records. What’s more, even if your employees are exempt from the federal law, you'll have to keep records to prove that fact.
Your payroll records must be kept for three years from the date of the last entry you made on them. Supplementary records (including basic employment and earnings records; wage rate tables; order, shipping, and billing records; and records of additions to or deductions from wages paid) must be kept for two years. However, the federal payroll tax laws require you to keep records related to payroll and withholding for a minimum of four years after the due date of the relevant tax return. Therefore, it will generally be easier to just keep everything for four years (or longer, if your state requires it).
The information that you'll need to keep will vary depending on each employee’s status. And you'll need to keep some information just to prove that each employee’s status was correctly determined.
Some of the information that you will need for all employees includes:
In addition, federal law requires you to keep specific additional information for each of the various classes of employees; nonexempt employees, exempt employees, homeworkers, and tipped employees.
Some states with wage and hour laws have their own requirements for keeping and storing records related to their wage and hour requirements. You must comply with both state and federal rules. Remember, for practical purposes, it’s best to keep all your records for the longest time period specified by the laws that apply to you.
The state records that are required to be kept generally include the information you're required to prepare in order to pay your employees. For example, most states want each employee’s name and identification information, occupation, payroll period, pay rate, hours worked, amounts withheld or deducted, and wage payment date.
|
Select a state from the map below to get information on recordkeeping requirements for payroll taxes: |
| Payroll Tax Recordkeeping Requirements in Alaska choose another state |
|
In Alaska, payroll records, showing the name in full and any identifying symbol or number, home address with zip code, date of birth (if under 19), sex and occupation of each employee, the time of day and day of the week on which the employee's workweek begins, the employee's regular rate of pay, the basis on which wages are paid, hours worked daily and weekly, the amount paid in each pay period and the date of payment must be kept for three years. |
| Payroll Tax Recordkeeping Requirements in Alabama choose another state |
|
Alabama has no law on payroll tax record retention. |
| Payroll Tax Recordkeeping Requirements in Arkansas choose another state |
|
In Arkansas, covered employers must keep records for not less than three years containing employee names, addresses, occupations, the hours worked each day and each week, pay rates, and the amount paid each pay period. |
| Payroll Tax Recordkeeping Requirements in Arizona choose another state |
|
Arizona does not specify any recordkeeping requirements. However, the Industrial Commission may inspect payroll records concerning minors' wages and employers may be required to submit statements of the wages paid to minors. |
| Payroll Tax Recordkeeping Requirements in California choose another state |
|
In California, employers must keep accurate records of the following: employee names, addresses, occupations, and Social Security numbers; birth dates of minors; time records; total wages for the payroll period; total hours worked; applicable pay rates for the payroll period including the value of board, lodging, and other compensation; meal period schedules and split shift intervals; and an explanation of piece rate or incentive plans. In California, employers must provide current or former employees, within 21 days of a written or oral request, with a copy, at cost, of their payroll records or allow the employee to inspect those records. Payroll records must be kept for not less than three years at a central location in the state or in the plant or establishment where the employees work. |
| Payroll Tax Recordkeeping Requirements in Colorado choose another state |
|
In Colorado, employers must keep on file for at least two years records of employee names, addresses, occupation and date of employment; the date of birth of minors; daily records of starting and stopping time; the regular rate of pay, gross wages, deductions, and net pay; and any applicable credits taken. |
| Payroll Tax Recordkeeping Requirements in Connecticut choose another state |
|
In Connecticut, records must be kept at the place of employment for three years for each employee, showing the name, address, occupation, total daily and weekly hours worked, beginning and end of each work period, total hourly, daily or weekly wage, overtime as a separate item, additions to or deductions from wages for each period, total wages paid each pay period, and work certificates for minor employees. For outside salespersons and custodial employees, required records must include name, address, occupation, total wages paid each pay period, date of payment and pay period covered. Additional information may be required under wage orders for specific occupations. |
| Payroll Tax Recordkeeping Requirements in District of Columbia choose another state |
|
In the District of Columbia, payroll records must be made, kept and preserved for not less than three years showing for each employee: (1) full name, including last, first and middle initial; (2) Social Security number; (3) occupation; (4) address, including zip code; (5) date of birth; (6) regular hourly rate of pay, total number of hours worked each workday and workweek, time of day and day of week on which the employee's workweek begins; (7) basis on which wages are paid; (8) a daily record of hours of beginning and stopping work and the hours of beginning and ending the meal recess, if the employee works a split shift; (9) total daily or weekly straight-time earnings and excess overtime earnings for the workweek, or total earnings for nonovertime hours worked during the workweek and total earnings for overtime hours worked during the workweek; (10) total gross and net wages paid each pay period and deductions from and/or additions to wages; (11) date of payment and the pay period covered by the payment; (12) if the employee is a tipped employee, the application of tips to the minimum wage rate; (13) if the employee is paid by commission, the employer must also record and retain the following: (a) a notation on the payroll record to readily identify each employee receiving wages based on commission; (b) an indication for each workweek during which the employee's regular rate of pay is in excess of one and one-half times the applicable minimum hourly rate; (c) a copy of the agreement for work on a commission basis; and (d) total compensation paid each pay period showing separately the amount of commission and the amount of noncommission straight-time earnings. |
| Payroll Tax Recordkeeping Requirements in Delaware choose another state |
|
In Delaware, employers must keep records containing the names, addresses, occupations, rate of pay and amount paid to each employee each pay period, wage scales, wages paid and hours worked each day and each week for three years. |
| Payroll Tax Recordkeeping Requirements in Florida choose another state |
|
Florida has no law on payroll tax record retention. |
| Payroll Tax Recordkeeping Requirements in Georgia choose another state |
|
In Georgia, employers must keep records of hours and wages of covered employees. |
| Payroll Tax Recordkeeping Requirements in Hawaii choose another state |
|
Every employer in Hawaii must keep for six years employee records showing for each employee: full name; Social Security number; any identifying symbol or number; home address; birth date (if under 19); occupation; rate of pay and length of pay period; hours worked each workday and workweek; total daily or weekly straight-time wages; total weekly overtime wages; amount and purpose of additions to or deductions from wages paid each pay period; total wages paid each pay period, date of payment and pay period covered; date of hire; and date of termination. Employees in Hawaii with guaranteed monthly compensation of at least $2,000 are exempt from the recordkeeping requirements. |
| Payroll Tax Recordkeeping Requirements in Iowa choose another state |
|
In Iowa, an employer who has paid a claim for unpaid wages or nonreimbursed authorized expenses and liquidated damages or if an employer has been assessed a civil money penalty for violating the wage payment law, the Labor Commissioner may notify the employer to establish, maintain, and preserve for three calendar years the payroll records showing the hours worked, wages earned, and deductions made for each employee and any employment agreements entered into between an employer and employee. An employer and employee may, upon written agreement that must be maintained as a record, vary the frequency-of-payment provisions in Iowa's wage payment law. |
| Payroll Tax Recordkeeping Requirements in Idaho choose another state |
|
Idaho has no law on payroll tax record retention. |
| Payroll Tax Recordkeeping Requirements in Illinois choose another state |
|
In Illinois, every employer must keep a record of the wages and hours of each employee for three years. The following basic information must be included in employer records: name of each employee; address of each employee; birthdate of each employee who is 18 years of age or under; Social Security number; sex and occupation; hours worked each day and hours worked each workweek; time of day and day of week when employee's workweek begins; basis on which wages are paid; additions and deductions from employee wages for each pay period and an explanation of the additions and deductions; type of payment (hourly rate, salary, commission, etc.), straight time and overtime pay and total wages paid each pay period; and dates of payment for each pay period. In addition to the basic information in employee wage records, for tipped employees the following is required: an identifying symbol, letter or number on the payroll record indicating the employee is a person whose wage is determined in part by gratuities; the report received from the employee setting forth gratuities received during each workday (signed by the employee and including the employee's Social Security number); the amount by which the employee's wages has been deemed to be increased by gratuities; hours worked each workday in any occupation for which the employee does not receive gratuities and the total daily or weekly straight time pay for those hours; and hours worked each workday in an occupation for which the employee received tips or gratuities and the total daily or weekly straight time earnings for those hours. |
| Payroll Tax Recordkeeping Requirements in Indiana choose another state |
|
Employers in Indiana must furnish employees, and the commissioner of labor, upon request, a statement of the hours worked, the wages paid, and any deductions made for each pay period. |
| Payroll Tax Recordkeeping Requirements in Kansas choose another state |
|
Employers in Kansas must keep a record of the name and occupation of each employee, the hours worked each day and each week, the rate of pay, and the amount paid each pay period to each employee. The information must be maintained for a period of three years. |
| Payroll Tax Recordkeeping Requirements in Kentucky choose another state |
|
Every employer in Kentucky must keep a record of amounts paid to employees on each pay period, hours worked each day and each week by such employees and any other information specified by the Commissioner. The Commissioner has specified that the following information be recorded: (1) personal identifying information, including name, age, address and gender; (2) regular rate of pay and hourly rate when overtime hours are worked; (3) total overtime pay; (4) total wages paid; and (5) day of payment and pay period covered. Records must be kept for one year. |
| Payroll Tax Recordkeeping Requirements in Louisiana choose another state |
|
Employers must keep for at least one year a record of the name, address, and occupation of each person employed by him, the amount paid each pay period to each employee, and the hours worked each day and each week by each employee. |
| Payroll Tax Recordkeeping Requirements in Massachusetts choose another state |
|
In Massachusetts, for two years after entry, records must be retained showing the name, address, Social Security and occupation of each employee; hours worked daily and weekly; and amount of pay for each pay period. |
| Payroll Tax Recordkeeping Requirements in Maryland choose another state |
|
Employers in Maryland must keep records for three years showing the names, addresses, occupations, hours worked and wages paid to all employees. The records for each employee must be kept on the premises where the employee works. |
| Payroll Tax Recordkeeping Requirements in Maine choose another state |
|
Every employer covered by Maine's minimum wage law must keep true and accurate records of the hours worked by each employee and of the wages paid. These records must be preserved for at least three years. |
| Payroll Tax Recordkeeping Requirements in Michigan choose another state |
|
Michigan employers must keep records for each employee listing the employee's name, address, birth date, occupation, total daily hours worked, total hours worked per pay period, total hours worked per workweek when workweek and pay periods do not coincide, total wage per hour, day or week, deductions, and credits taken for meals, tips and/or lodging. Records must be kept for at least three years. |
| Payroll Tax Recordkeeping Requirements in Minnesota choose another state |
|
Every employer in Minnesota must keep, for a period of no less than three years, the name, address, occupation, rate of pay, amount paid each pay period and hours worked of each employee. |
| Payroll Tax Recordkeeping Requirements in Missouri choose another state |
|
Employers in Missouri must keep and maintain records for a minimum of three years containing employee information, including name, address, occupation, rate of pay, amount paid each pay period, hours worked each day and each week, and any goods and services provided by the employer in lieu of pay. The records are to be kept open for inspection by the Labor Department and are confidential. |
| Payroll Tax Recordkeeping Requirements in Mississippi choose another state |
|
Mississippi has no law on payroll tax record retention. |
| Payroll Tax Recordkeeping Requirements in Montana choose another state |
|
Employers in Montana must maintain and preserve payroll or other records containing the following information and data with respect to each employee to whom the wage and hour law applies: name, social security or other identifying number, home address (including zip code), date of birth, sex, occupation in which employed, time of day and day of week on which the employee's workweek begins, regular hourly rate of pay, length of the pay period, hours worked each day and total hours worked each workweek, total daily or weekly straight-time earnings, total weekly overtime compensation, total additions to or deductions from wages paid each pay period, total wages paid each pay period, date of payment and the pay period covered by the payment. For bona fide executive, administrative or professional capacity employees, employers in Montana are required to maintain and preserve records containing an employee's name, social security or other identifying number, home address (including zip code), date of birth, sex, occupation in which employed, time of day and day of week on which the employee's workweek begins, hourly rate of pay, length of the pay period and in addition, the basis on which wages are paid. The records must be retained for three years. Employers must keep the required records safe and accessible at the place or places of employment, or at one or more established central recordkeeping offices where such records are customarily maintained. Where the records are maintained at a central recordkeeping office, other than in the place or places of employment, such records must be made available within 72 hours following notice from the Administrator or his or her duly authorized and designated representative. |
| Payroll Tax Recordkeeping Requirements in North Carolina choose another state |
|
Employers in North Carolina must make, keep and preserve such records of persons employed and of wages, hours and other conditions and practices of employment as are essential to enforcement of the law and are prescribed by regulation of the Commissioner. However, the Commissioner may not prescribe records for public agencies. North Carolina exempts volunteer firefighters and volunteer rescue and emergency medical services personnel in an incorporated, nonprofit volunteer or community fire department or an incorporated, nonprofit rescue squad from the state's recordkeeping requirements for hours worked. |
| Payroll Tax Recordkeeping Requirements in North Dakota choose another state |
|
In North Dakota, employers must keep registers of the names of all employees. Employers must also keep payroll records of hours worked and pay rates of each employee in each pay period. Employers of 25 or more persons must make, keep and maintain records of the wages and wage rates, job classifications and other terms and conditions of employment of the persons it employs. The records must be preserved for a reasonable period of time. (Note that under North Dakota's separate payroll tax recordkeeping rules, records must be retained for at least four years). |
| Payroll Tax Recordkeeping Requirements in Nebraska choose another state |
|
Nebraska has no law on payroll tax record retention. |
| Payroll Tax Recordkeeping Requirements in New Hampshire choose another state |
|
In New Hampshire, records of the hours worked and wages paid are required. |
| Payroll Tax Recordkeeping Requirements in New Jersey choose another state |
|
In New Jersey, employers must keep records of hours worked by and wages paid to employees. Records must be kept for six years. |
| Payroll Tax Recordkeeping Requirements in New Mexico choose another state |
|
In New Mexico, for one year from the date of entry, records must be kept of hours worked and wages paid to each employee. |
| Payroll Tax Recordkeeping Requirements in Nevada choose another state |
|
Employers in Nevada must maintain records for each employee showing gross and net wages, deductions, hours and dates of payment. The information must be furnished to employees within 10 days upon request and must be maintained for two years. |
| Payroll Tax Recordkeeping Requirements in New York choose another state |
|
In New York, every employer must establish, maintain and preserve weekly payroll records for not less than four years, including the following information for each employee: (1) name and address; (2) Social Security number; (3) number of hours worked daily and weekly, including the time of arrival and departure for employees working a split shift or spread of hours exceeding 10; (4) the amount of gross wages, job classification and wage rate; (5) deductions from gross wages; (6) any allowances claimed as part of the minimum wage rate; (7) money paid in cash; (8) student classification and school statement; and (9) for individuals working in an executive, administrative or professional capacity, total wages and the value of any allowances for each payroll period. |
| Payroll Tax Recordkeeping Requirements in Ohio choose another state |
|
In Ohio, employers covered by the minimum wage law or its regulations must make and keep for a period of three years a record of the name, address and occupation of each employee, the rate of pay and the amount paid each pay period, the hours worked each day and workweek and other prescribed information. Records must be open for inspection or copying at any reasonable time. |
| Payroll Tax Recordkeeping Requirements in Oklahoma choose another state |
|
Oklahoma has no law on payroll tax record retention. |
| Payroll Tax Recordkeeping Requirements in Oregon choose another state |
|
In Oregon, there is a two-year retention requirement for records of employee names, addresses, occupations and hours worked, and such other information as may be prescribed by rule. |
| Payroll Tax Recordkeeping Requirements in Pennsylvania choose another state |
|
In Pennsylvania, every employer must keep an accurate record of the hours worked by each employee and the wages paid. The records are to be preserved for a period of three years. |
| Payroll Tax Recordkeeping Requirements in Puerto Rico choose another state |
|
Every employer in Puerto Rico must keep a record, payroll or pay list, showing the names and addresses of all employees, the hours worked by each employee and the wages paid to all employees, in the form prescribed by the Minimum Wage Board. Records must be kept for not less than three years. |
| Payroll Tax Recordkeeping Requirements in Rhode Island choose another state |
|
Every employer in Rhode Island must keep a true and accurate record of hours worked and wages paid to each employee each pay period. Such record must be on file for at least three years. |
| Payroll Tax Recordkeeping Requirements in South Carolina choose another state |
|
Employers in South Carolina must keep records of the names and addresses of all employees and of wages paid each payday and deductions made. The records must be retained for three years. Employers' wage payment records may be inspected and reproduced by the Commissioner of Labor and authorized designees at reasonable times in order to determine whether employers are in compliance with South Carolina's wage payment law. |
| Payroll Tax Recordkeeping Requirements in South Dakota choose another state |
|
Every employer of more than 25 employees must maintain a record of the wage and wage rates, job classifications and other conditions of employment of the persons employed by it, which must be preserved for a reasonable time. |
| Payroll Tax Recordkeeping Requirements in Tennessee choose another state |
|
Employers in Tennessee must make wage and payroll records that are pertinent to a written complaint. The records must be available to Department of Labor and Workforce Development inspectors during regular business hours if the records are maintained on the premises. Records that are maintained off the premises or that are inaccessible must be made available to the inspectors on a timely basis as agreed upon by the inspector and the employer. |
| Payroll Tax Recordkeeping Requirements in Texas choose another state |
|
Texas has no law on payroll tax record retention. |
| Payroll Tax Recordkeeping Requirements in Utah choose another state |
|
Employers in Utah must keep records of employees covered under the state minimum wage law showing names, addresses, dates of birth, hours worked, and wages paid. Records must be retained for three years. |
| Payroll Tax Recordkeeping Requirements in Virginia choose another state |
|
Virginia has no law on payroll tax record retention. |
| Payroll Tax Recordkeeping Requirements in Virgin Islands choose another state |
|
No information available. |
| Payroll Tax Recordkeeping Requirements in Vermont choose another state |
|
Covered employers in Vermont must keep records of their employees' working hours and wages. Such records must be open to inspections by the Commissioner of Labor and Industry at any reasonable time. |
| Payroll Tax Recordkeeping Requirements in Washington choose another state |
|
In Washington, records are required to be kept for at least three years, showing the name, address and occupation of each employee, rate of pay, amount paid each pay period, hours worked daily and weekly, and such other information as may be administratively prescribed. |
| Payroll Tax Recordkeeping Requirements in Wisconsin choose another state |
|
Every employer in Wisconsin must make and keep for at least three years payroll or other records for each of its employees containing: (a) name and address; (b) date of birth; (c) dates of entry and leaving employ; (d) time of beginning and ending of work each day; (e) meal period; (f) total number of hours worked per day and per week; (g) rate of pay and wages paid each payroll period; (h) itemized deductions; and (i) output of employee, if paid on other than a time basis. |
| Payroll Tax Recordkeeping Requirements in West Virginia choose another state |
|
Employers in West Virginia must maintain payroll records, including employees' names and addresses, at their places of business for five years. |
| Payroll Tax Recordkeeping Requirements in Wyoming choose another state |
|
For a period of not less than two years, employers in Wyoming must make and keep records of the names, addresses and occupations of employees, their rates of pay, the amount paid each period, the hours of work and workweeks of the employees. |
 |
Copyright 2006, CCH INCORPORATED. All Rights Reserved.