Old Employee Benefit Files.
Posted by Health Promotion | Posted in Health Promotion, Wellness Programs | Posted on 06-09-2010
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Ever set out to organize and dispose of old worker files and paperwork in the office? the job is tougher than it seems.
Best practice – Create a records retention policy as your first step. A host of federal and state laws specify how long you must retain pay- and benefits-related documents.
Compliance is essential if a current or former staff member sues or the DOL, IRS or the state audits your records.
Here’s a records-retention schedule recommended by employment lawyer Jacqueline McManus -
o Retain for two years employee personnel files, including performance reviews and training.
o Hold these for three years – wage records, including time cards, base pay and overtime wage-rate calculations and records explaining wage diferentials for workforce performing the same job, and hold I-9 forms for three years from hire date or one year after termination, whichever is later.
o Keep these four years – all Payroll documents, including – home address records, and all wage records, including weekly OT earnings, straight time pay, deductions, bonuses, pay period designations and payment dates.
o Use a five-year retention window for employee health info like medical and first-aid records from on-the-job injuries, and drug and alcohol testing records.
o Keep this benefits data for six years (or one year after plan termination) – elections and enrollment forms, benefit change documents, and COBRA notices.
o Retain 401(k) files indefinitely.