Employee Record-keeping
Careful record-keeping helps protect both businesses and employees!
Employee Record Keeping
Whether you are a small business or a large enterprise, keeping and organizing employee records is essential. These records will be useful when conducting workplace investigations, proving that your business is in compliance with local, state, and federal statutes, and defending your business from lawsuits. There are three types of document that need to be maintained for every employee. They are personnel, payroll, and medical files.
Personnel
These are documents that are directly linked to the employment of the employee and include hiring documents, employee and emergency contact information, signed acknowledge of employee handbook, identifying information, other onboarding or policy affirming documents, performance reviews, training records, attendance records, job description, training records, disciplinary documents, and termination letters. DO NOT put confidential information such as medical information in this file or I9 right to work in the country forms. Right to work documentation, such as an employee’s I-9, should be kept separately. The EEOC requires that all employers must keep al personnel records for at least one year. If the employee is involuntarily terminated, then the employer must hold onto all employee records for one year from the time of termination. In addition, some documents should be held for longer than one year. These include.
Resumes – keep for one year but there is no requirement for unsolicited resumes
Form I9 – three years from the time of hire or one year after termination (whichever is later)
Performance Reviews – 2 years
Payroll
Documents that involve salary, benefits and other financial awards (such as bonuses), and tax information should be filed under payroll information. This includes time-sheets, direct deposit information, records of additions and deductions from wages, salary history and W4 and W2 forms. According to the Department of Labor, payroll documentation, collective bargaining agreements, and sale and purchase records need to be kept for at least three years. In addition, records regarding wage calculations need to be kept for at least two years. These include timecards, wage rate tables, work and time schedules, and records of additions or deductions from wages. The IRS requires that you keep all tax records for at least four years. These include records of allocated tips, employee copies of W-2’s, copies of tax withholding certificates, and any other documents an employee would use on their taxes. Last, The Employee Retirement Income Security Act (ERISA) requires business to keep all employee records about retirement and benefit plans for at least six years after the termination of the plan.
Medical files
Any records that contain sensitive medical data or requests for accommodation under the ADA should be stored as medical files. These include drug and alcohol test results, emergency contact information, requests for reasonable accommodation under the ADA, workman’s comp history, injury reports as required by OSHA, reimbursements for medical expenses, notes from doctors, and paperwork concerning employee leave under the FMLA. These records should be secured and made confidential so that only authorized personnel can access them. OSHA logs should be kept for five years. All other employee medical records should be kept for an additional three years after the time of termination of the employee.
If you have any questions or concerns about your business’s record keeping direct any questions you have to Employer-Lawyer, PLLC. You can reach us at (801) 874-4964 or spencer@employer-lawyer.com.