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14 bits of payroll data to keep

July 1, 2006

You know there's more to paying team members than cutting a check. But are you sure you're keeping the right records?

You know there's more to paying team members than cutting a check. But are you sure you're keeping the right records? Kerry Richard, a lawyer with Tobin, O'Connor, Ewing and Richard in Washington, D.C., says you should include 14 pieces of information about the employee (shown right) in your payroll records.

You can keep these records in electronic or hard-copy format, as long as they're complete and accurate and readily available upon request by the U.S. Department of Labor, Richard says. "You'll keep most of these documents for three years, except for certain items used to calculate wages—timecards, wage rate tablets, and work and time schedules—which you only need to keep for two years," she says.

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While you don't need to keep timecards for exempt employees—those working on a salary—Richard recommends keeping these employees on a regular schedule. This way, if for some reason you find out that an employee's been misclassified, you can demonstrate the number of hours he or she actually worked.

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