How long do employers keep records

Additionally, employee tax records should be kept for four years following separation, according to the IRS. These documents would include, but are not limited to, the following:. Benefits records such as plan documents, election forms, plan termination records, and other benefits documentation should be kept for six years following separation of the employee from the organization.

Conducting an HR audit of your organization can help determine strengths and weaknesses of your current recordkeeping system and shine a light on what could help your company maintain compliance.

While employers are generally allowed to keep records electronically or in paper format, most industry leaders recommend that employers use a secure HRIS for record management. HR teams are usually responsible for distributing an array of notices to its employees, which often require employee acknowledgment of the notice and records via signature.

Not only will this reporting option keep employers compliant, but it will also save the time and stress associated with manually compiling information.

Close Search. No Comments. Please note that this is purely a guide and you should seek specific guidance where possible: Accident Records: Minimum of 3 years since the last entry, or if it involves a child until they reach Income Tax and NI: Minimum of 3 years from the end of the financial year to which they relate.

Maternity and Paternity: Minimum of 3 years from the end of the tax year in which the leave ends. Salary and Pay: Minimum of 6 years. Working Time: 2 years.

Parental Leave: 5 years from birth or adoption, or 18 years if the child receives a disability allowance. Pension Benefits: 12 years from the ending of any benefit payable.

All Personnel Files and Training Records: 6 years from the end of employment. Redundancy Records: 6 years. Sickness Absence Records: A minimum of 3 months but potentially up to 6 years after employment ends. How does GDPR change things? Be safe, not sorry Remember that GDPR has some serious teeth, with huge fines possible for those that transgress.

To keep yourself safe, put every category of employee data through this six-step procedure: Step one — Carry out an audit. Ensure that you can access, change or delete data if asked to by an employee Step six — Have regular clear outs.

Be careful when moving and storing data Another important point — especially if you are an international company — is that GDPR prohibits you from exporting data to countries outside the European Economic Area unless that country has data protection laws equal to those laid out in GDPR.

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Accept Reject Read More. Close Privacy Overview This website uses cookies to improve your experience while you navigate through the website. Federal contractors subject to affirmative action requirements must maintain records related to their hiring and selection, including advertisements; job postings; applications; resumes; interview notes; requests for reasonable accommodations; tests and test results; personnel files; rates of pay and other compensation; selection for training or apprenticeship; and other information regarding hiring, transfers, promotions, layoffs and terminations.

As part of their record retention obligations, federal contractors must retain records relating to all individuals who meet the criteria of "Internet applicant," along with other employment records.

Although not required by law, applicant tracking is recommended by these guidelines for all employers covered under Title VII and can be done pre-hire when it is part of an employer's decision to follow the guidelines.

Adherence to these guidelines would strongly suggest an employer is free from unlawfully discriminatory hiring practices. Employee files should be stored in a secure location and be kept strictly confidential. Access should be restricted to those with a legitimate need to know or as required by law.

Several categories of records must be maintained according to specific requirements. See What should, and should not, be included in the personnel file? Certain records related to employees and their employment history should be maintained in an employee's personnel file. These records include:. Certain employee records should be kept separate from an employee's personnel file to protect the privacy rights of employees and to insulate employers from liability.

This includes the following types of records:. Employers often choose to maintain records electronically rather than keeping paper files.

This relieves the need for physical storage space for employment records over a span of many years, which may save money and time. Also, electronic storage facilitates easy retrieval of information and allows for efficient access to documents. Organizations may also elect to go paperless as part of a commitment to sustainability. Employers have options when creating an electronic record-keeping strategy and numerous vendors and software platforms are available.

A cloud-based or software-as-a-service SAAS approach allows companies to implement new processes faster, update software with greater ease and remove tech support burdens from HR. On the other hand, some professionals find that private on-premises systems offer more control in determining how to use, store and locate data.

What factors should we consider when converting personnel files from hard copy to electronic format? The Compliance Risks of I-9 Software. Compliance guidance is provided for certain types of records such as I-9 forms and OFCCP rules for federal contractors. For an overview of specific requirements by type of record, see:. Employers need to understand the requirements of the law in the state s where their employees work and define internally what access is permitted in states where there is no regulatory requirement.

Some considerations include:. A multistate employer needs a flexible policy, so it is applicable to all employees. For example, a statement such as "Access to personnel files will be provided according to state law" is appropriate. Access to Employee Personnel File Policy.

Employers must implement safeguards to protect personal employee information. Identity theft has become a top consumer fraud issue, and the Federal Trade Commission FTC reports that identity theft tops the list of consumer complaints that are reported every year. Every employer maintains records that are at risk of theft and misuse; therefore, employers should develop processes that protect this sensitive employee information.

How to Prevent Data Breaches. There are numerous federal and state laws that govern retention of employment records.