ITG FAQ #2 Answer-What items should be kept?
All payroll records should be kept for four (4) years. Some examples are employees’ Forms W-4, time cards, payroll ledgers, worksheets, payroll reconciliations, copies of payroll tax deposit information, and Forms 941.
It is important for you to keep documentation to support each deduction from an employee’s wages. Deductions from employees’ wages are later remitted to designated recipients such as taxing authorities, insurance companies, retirement plans, child support, and others.
Backups of either manual or computerized payroll systems should be made routinely, checked for accuracy, and should be stored in a safe place for at least 4 years.