Old Employee Benefit Files.
Ever set out to organize and dispose of old staff member files and paperwork in the office? the job is tougher than it seems.
Best practice - Develop a records retention policy as your first step. A host of federal and state laws specify how long you must retain pay- and benefits-related documents.
Compliance is essential when a current or former employee sues or the DOL, IRS or the state audits your records.
Here is a records-retention schedule advised by employment lawyer Jacqueline McManus -
o Retain for two years employee personnel files, including performance reviews and training.
o Hold these for three years - wage records, including time cards, base pay and overtime wage-rate calculations and records explaining wage diferentials for workforce performing the same job, and hold I-9 forms for three years from hire date or one year after termination, whichever is later.
o Keep these four years - all Payroll documents, including - home address records, and all wage records, including weekly OT earnings, straight time pay, deductions, bonuses, pay period designations and payment dates.
o Use a five-year retention window for staff member health info such as medical and first-aid records from on-the-job injuries, and drug and alcohol testing records.
o Keep this benefits data for six years (or one year after plan termination) - elections and enrollment forms, benefit change documents, and COBRA notices.
o Retain 401(k) files indefinitely.