Which Employee Records Do You Really Need to Keep? Here’s Your Breakdown.

Well-kept employee records are like a rain jacket on a tropical trip—you hope you won’t need them, but they’re critical if you do. With the stacks of paperwork you already have in your office, it can be tempting to cut corners. But if an employee takes action against your company or you’re audited by the IRS, you’ll want to access all the personnel records you need.

Does this mean you need to stash away every scrap of paper your employees touch? Not quite. In fact, you can ditch some records right away. The requirements for what and how long to keep employee records vary by state, so be sure to check with an expert in your area.

To get you started, here’s an overview of which files you’re required to hold onto after an employee leaves, and which you can throw away.

Employee record retention at a glance

Record

Federal minimum

Source

Payroll records (name, address, pay rate, hours, wages paid)

3 years

FLSA, ADEA

Time cards, wage-rate tables, work schedules

2 years

FLSA

Hiring, promotion, termination, and other personnel records

1 year from the record or action (1 year after termination for former employees)

EEOC (Title VII, ADEA, ADA)

Job postings, applications, resumes, interview notes

1 year (2 years for federal contractors; 1 year if under 150 employees or contract under $150k)

EEOC / OFCCP

Employment tax records (W-4s, W-2 copies, Forms 940/941, deposits)

4 years

IRS

Form I-9

3 years after hire or 1 year after termination, whichever is later

USCIS

FMLA records

3 years

FMLA

Benefit plan records (retirement, health, life, disability)

6 years

ERISA

OSHA injury and illness logs

5 years

OSHA

OSHA exposure and medical records

30 years

OSHA

The employee records you need to keep on file

When it comes to employee paperwork, protecting yourself is the name of the game. Here are the types of files to keep on former and present employees, and what needs to go in each one.

Basic employee data

Start off by keeping the basics. The law requires it, and you’ll thank yourself when it’s time to tackle performance reviews. You should have the following information for each team member’s personnel file:

  • Employee’s full name

  • Social security number

  • Birth date, if younger than 19

  • Address, including zip code

  • Sex and occupation

  • Job title

  • Dates employed

  • Wage or salary  

  • All additions to or deductions from the employee's wages;

  • Total wages paid each pay period; and

  • Date of payment and the pay period covered by the payment.

For hourly and other non-exempt employees, you should also have:

  • Time and day of week when employee's workweek begins

  • Hours worked each day and total hours worked each workweek

  • Basis on which employee's wages are paid

  • Regular hourly pay rate

  • Total daily or weekly straight-time earnings

  • Total overtime earnings for the workweek

The federal law requires payroll records to be kept for a retention period of at least three years, and time cards and wage-computation records for at least two. Personnel records, such as hiring, promotion, and termination documents, must be kept for at least one year (one year after termination for former employees). However, some state laws are longer, so take a look at your state's requirements.

A quick heads up: some records should be kept in separate files because they're confidential. Keep the main personnel file to records about employment-related decisions, and put medical information in its own private file. Keep Form I-9s separate too. Internal notes that express opinions are best kept out of the general file as well.

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Hiring and performance records

You’ve hired solid-gold employees so far, and any candidates you haven’t hired have taken the news perfectly fine. But if anyone does question a hiring decision, you’ll want to prove you didn’t discriminate during the process. To protect yourself, keep the following hiring documentation:

  • All copies of your job postings

  • A list of candidates you considered and their resumes, notes from interviews, and a written case for why you selected your new hire

Federal rules require you to hold onto these records for at least one year after the creation of the document or the hire/no-hire decision. Federal contractors generally must keep them for two years. If a discrimination charge or lawsuit is filed, keep everything related until it's fully resolved.

It's also a good idea to preserve performance reviews, promotions, and any notes related to problems on the job and resulting disciplinary actions. If a former employee sues you for what they think is wrongful termination, any records that document sub-par performance can come to the rescue.

Payroll and benefits details

Employment laws like the Age Discrimination in Employment Act (ADEA) and the Fair Labor Standards Act (FLSA) require you to keep payroll records on hand for three years. Thankfully, this means simply keeping a copy of pay stubs and payroll registers you already have on file.

If you use an online payroll provider like Gusto, those paperless paychecks are accessible at any time—no need to mess around with the printer.

As for benefits, keep information on employee retirement, life insurance, health insurance, COBRA, and short- and long-term disability plans for six years, in line with Employee Retirement Income Security Act (ERISA) requirements. Also hold onto records related to Family and Medical Leave Act (FMLA) benefits for three years.

Why keep all this? When it comes to a dispute over benefits or insurance, it’s your job as an employer to prove how much you do or don’t owe.

Tax paperwork

Tax forms aren’t the most exciting documents, but they’re important to keep safe. The IRS generally requires you to keep employment tax records for at least four years, and it can audit a return within three years of filing (longer in cases of substantial underreporting or fraud). Here are the main documents to hold onto for four years:

Safety and other records

If you're required to keep OSHA injury and illness logs, hold them for five years. Employee exposure and medical records are kept for 30 years. Also keep any safety training records OSHA requires.

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The employee records you can ditch

Retaining more than you need can weigh you down. Here are the records you don’t necessarily need to keep when an employee leaves:

Duplicates

Between employee reviews and W-2s, you have plenty to keep track of already. Doubling that amount is just overkill. So keep the forms and records you need to comply with laws and protect your company from potential jams. Then, let yourself off the hook when it comes to backups.

Worksheets and goal-setting records

Let go of goal-setting worksheets, informal development notes, and awards or certificates of excellence. They may be super helpful when you're planning for a performance review, but they're not worth the storage space when the employees they refer to are no longer around.

Emergency contacts

If a member of your team has an accident, you need to know how to reach their spouse, partner, or family member pronto. After they’ve left your business, there’s no need to call their next of kin, so delete away.

Before you toss anything…

Pause deletion if you're facing a charge, lawsuit, or audit; those records need to be preserved until it's resolved. When you do dispose of records, shred paper files and securely delete digital ones, since they contain sensitive data like Social Security numbers.

Keeping a paper trail for every employee—both past and present—can be a little daunting, but it’s worth it. Take the time to create a recordkeeping system that works for your business, and don't forget to ditch what you don't need.

FAQs

Can I store employee records electronically?

Generally yes. Federal agencies accept electronic records as long as they’re accurate, readable and can be produced on request. Form I-9s can also be stored electronically if your system meets the government’s standards. Keep the same retention periods for digital and paper records.

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Can employees ask to see their personnel file?

It depends on the state. Many states give current and former employees the right to review or get a copy of their personnel file, and some set time limits for responding. Check your state’s rules before you answer a request.

What happens if you don’t keep required employee records?

Agencies can fine you or add penalties during an audit or investigation. In a wage or discrimination dispute, missing records can also make it harder to defend your side.

How should you securely store and dispose of employee records?

Limit access to people with a business need, store sensitive files such as medical records and I-9s separately, and use secure systems or locked cabinets. When a retention period ends, shred paper files and securely delete digital ones.

Do you need to keep records for independent contractors?

Yes. Keep the contract, any invoices or payment records, and the Forms 1099 you filed. The IRS generally expects tax records to be kept for at least four years.

Quick note: This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer or HR expert for specific guidance.

Elizabeth Robinson

Elizabeth Robinson | copywriter

Elizabeth is a copywriter with a long history writing for tech and finance. She has an MFA in poetry, a keen eye for misplaced modifiers, and a soft spot for shar-pei mixes like her sidekick, June.