According to the American Payroll Associations' article, Spring Cleaning Your Payroll Records: IRS Rules, after finishing year-end payroll processing, it is a great time to clean up old files. Which records can you destroy, and which records must you retain? The Internal Revenue Code (IRC) requires all employers that withhold and pay federal income, social security, and Medicare taxes to maintain certain records for each employee. Failure to meet these requirements can result in sizable penalties and large settlement awards if you are unable to provide the required information when requested by the IRS or in an employment-related lawsuit.
Click here to read the rest of this American Payroll Association article.
Do you have questions about how to best manage your payroll records? Contact Deb Herr in Skoda Minotti's Small Business Services group by leaving a message below, or by calling 440-449-6800.