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Monday, October 17, 2016

How Long Should You Keep Payroll Records?


  

At least four years after the due date for employees to file their income tax returns for the particular year, IRS says.

 

Records to be retained include wages, payment dates, and employee data such as their names, dates of employment, Social Security numbers and addresses.

 

Also, copies of W-4 Forms, W-2 Statements, I-9 Forms, Payroll Tax Returns, and amounts and dates of tax deposits.

 

Keeping these records will help you survive a State of Federal Income Tax and Payroll Tax Audit.

 

TAX TIP:

 

If you outsource payroll, be sure the payroll company provides you with copies of all payroll related information each month, including proof of payroll tax deposits made. The business and business owner is the party ultimately responsible for required payroll tax deposits.

 

 

This article was written by Donald M. Scherzi, CPA, CFP, LLC

Mike Lupo, SCORE Counselor


 

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