What Important Employee Records Should You Be Keeping?

The importance of well-kept employee records stretches far beyond the possible legal ramifications. Accurate employee records can help HR departments identify skill gaps and recruit ideal staff members. So what important employee records should you be keeping? If you are looking to improve your department and ease the fear of inspection, it is important to start with your employee records.

What Important Employee Records Should You Be Keeping?

When it comes to employee paperwork, preparation and protection is the name of the game. Here are the different types of forms and information you should keep on former and current employees.

Basic Employee Record Information

Let’s start with the basics. The federal government required you to maintain the following information, and you will thank yourself when it is time to tackle performance reviews.

  • Name
  • Address
  • Job Title (Duties)
  • Dates Employed
  • Wage/Salary

The law requires you to keep this information on records for one year following an employee’s termination. However, it is important to review your state and local laws as they can differ from federal requirements.

HR Tip: Keep employment-related information separate from any medical information and internal notes as they are considered confidential.

Hiring and Performance Employee Records

If anyone questions a hiring decision you will need to prove no discriminate was apart of the decision making process. To protect yourself keep the following items on record:

  • Job Posting Information
  • List of Candidates
    • Resume
    • Interview Notes
    • Written Reason for Selection

We recommend you keep these records for one year following the hiring process.

It is also a good idea to keep all performance review, promotion, and any other job-related notes and information. In the case, a former employee brings up a lawsuit for wrongful termination any records on file will be very useful in supporting your argument.

Payroll and Benefits Employee Records

The Age Discrimination in Employment Act (ADEA) and the Fair Labor Standards Act (FLSA) required businesses to maintain accurate payroll documents for a minimum of four years. Keep a copy of employee pay stubs on record following each pay period.

Employee benefits information such as employee retirement, life insurance, COBRA, health insurance and long-and-short term disability plans for a minim of six years. Family and Medical Leave Act (FMLA) requires businesses to retain relevant information for three years.

Employee check list
Tax Employee Records

The following documents should be kept in the employee’s record for a minimum of four years:

  • W-2
  • W-4
  • 1099
  • Form I-9
  • FICA (Social Security and Medicare) and FUTA (unemployment) taxes
  • Federal and state payroll tax deposit forms
  • Federal and state payroll tax forms, including Forms 941 and 940

Simplify The Life of HR

When handling highly sensitive data and information remember that accuracy and organization is the best policy. Even simple mistakes can land you, and your business, in hot water quickly. One aspect of remaining compliant is your ACA reporting and tracking.

If you are looking for full-service ACA reporting software for tracking and monitoring your compliance you have come to the right place. ACAwise is your one-stop destination for all of your year-round ACA needs. Contact one of our representatives for a free demo to learn how we can simplify your business’s compliance.

Stay Legally Complaint

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