Momentum - Business to Business Online Magazine MOMENTUM January 2019 | Page 19
To Keep or Not To Keep
Employee Records Retention: Quick Reference Guide
By: Nicole Bellow, DBA, MBA, SPHR, SHRM-SCP
Smarter HR Solutions
[email protected]
As 2018 ends, as business owners/managers, we have our normal end of the year checklist of things we want to accomplish by
December 31st. You’ve laid out your budget for 2019, planned your marketing strategies, completed your year-end employee
reviews, had your holiday parties, but there’s one thing that you may not have had on your checklist that could potentially keep
you from losing your next EEOC or TWC claim.
When is the last time you checked your company’s employee records for compliance? Are you still holding on to files from your
very first employee that only left 10 years ago? Are you currently relying on a paper intensive system to “alert” you to when to do
what?
Being business owners/managers, the task of employee file maintenance is surely not at the top of your to-do list but being
compliant with federal and state laws should be one of our top priorities.
Consider this our gift to you for the holidays. Below is a short list of some record retention requirements and recommendations
to help you as you begin a new and exciting year with your company.
Type of Record Law Required Minimum Retention Recommended Retention
Pre-Employment 2 Years Duration of Employment +4 Years
Wage Records 3 Years 5 Years (If Space Permits)
Payroll Records 3 Years Duration of Employment +4 Years
I-9 Forms 3 Years or 1 Year After Termination (later) Duration of Employment +4 Years
Employee Personnel Files
(employers 15+ employees) At least 1 after termination Duration of Employment +4 Years
Employee Benefits Files 6 Years 6 Years from Start of Plan
If your company is still using paper files for employee records, onboarding and offboarding, one HUGE tip is to incorporate an
HRIS (Human Resource Information System) to help your company organize, manage, and streamline some of its basic HR
Functions. A HUGE myth is that only large fortune 500 companies can afford an HRIS or an HCM (Human Capital Management)
system. There are systems available and developed specifically to help manage record retention and employee data for small to
midsized companies.
With an HRIS system, daily functions of Employee Management become less burdensome to business owners/managers
moonlighting as HR professionals. Most platforms allow you to manage Payroll, Hiring, Training, Performance Reviews,
Onboarding/Offboarding, File Maintenance, Compliance, and Time & Attendance, all in one system.
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MOMENTUM / January 2019