How long should I keep my payroll records?

Businesses are required to keep payroll records for a certain period of time as failing to do so can result in fines and penalties. However, there is no hard or fast rule because it depends on the type of records and why you might want to keep them. When thinking about time and attendance and/or time and labor management records, the Department of Labor requires that you keep these records for 3 years. The IRS requires businesses to keep payroll and tax records for 4 years. In both cases, you are keeping this information in case you are audited or reviewed by any of the various agencies.

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