Keeping payroll records is a daunting task
July 30, 2013
Article courtesy of SBAM Approved Partner ASE
Paying employees involves more than just issuing checks. You also need to keep accurate records on each employee for a specific amount of time. These records must include details, such as name, address, occupation and Social Security number.
Your business must also retain records about compensation, such as the date paid, pay period, tips, non-cash payments, compensation subject to withholding and payroll taxes, and details about fringe benefits. In addition, you must keep copies of pertinent federal forms filed.
Record-keeping isn’t just required under tax laws. A number of federal, and possibly state, laws require some or all employers to retain certain records. For example, you may have responsibilities under the Fair Labor Standards Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, the Immigration Reform and Control Act, the Occupational Safety and Health Act and the Employee Retirement Income Security Act.
This is a daunting list. To make matters worse, each law has its own statute of limitations for record-keeping. Mistakes can lead to costly penalties.
Any questions? Just contact ASE!