You
should keep all supporting documents for your payroll for at least four years
after the due date your employees have to file their income tax returns. To be safe, I usually recommend that you keep
at least the last five years of payroll tax records.
The
records to be retained include wage and payment dates, time cards, time sheets,
wage payment records for each pay period, personal employee data (name, social
security number, address, etc.), copies of W-4 forms, payroll tax returns, W-2 forms,
and valuation records for fringe benefits provided to employees.
If
in doubt, keep it for five years.
Like any good CPA, I need to add a
disclaimer: Unfortunately, it is
impossible to offer comprehensive tax info over the Internet, no matter how
well-researched or written. And
remember, I love my readers, but having me bookmarked on your computer doesn’t
make you a client: Before relying on any
information given on this site, contact a tax professional to discuss your
particular situation.