Rachel Brooks, CPP

3 is 44 is 3

OSHA is 5

FLSA requires certain records to be kept by covered employers for all employees and retained for either 2 or 3 years

Refer to lists on p. 10-2 and 10-3

Records must be “Safe and Accessible” and be available for inspection within 72 hours

Penalties – Up to $10,000 and 6 months imprisonment

In Lawsuit – Court will accept employee’s evidence if employer has incomplete records

IRC requires all employers that must withhold and pay FIT, SS, and MED retain these records for 4 years

Includes W-4, W-5, W-4S, W4-P, personal employee info, W-2, EIN, and copies of all tax returns (941, 940, etc.)

Employer remains ultimately responsible for the recordkeeping requirements, even if using a payroll service provider

In event of audit, employer must make all records available upon request

Penalties - Up to $25,000 ($100,000 for corporations) and 1 year imprisonment

Civil Rights Act of 1964 (Title VII) requires records to be kept at least 1 year (EEOC)

Age Discrimination in Employment Act of 1967 (ADEA) requires records to be kept at least 3 years

Government Contractor Regulations – Federal contractors and subcontractors must retain info on applicants and employees to determine if affirmative action goals have been met

Immigration Reform and Control Act (IRCA) requires I-9 to be retained for at least 3 years after date of hire or 1 year after date of termination, whichever is later

Family Medical Leave Act (FMLA) requires records to be retained for either 2 or 3 years – same as FLSA requirements

State Unemployment Insurance Laws - 10-12 State Table on 10-13

State Wage-Hour Laws – 10-14 - State Table on 10-14 and 10-15

Unclaimed Wages (Escheatment) – 10-15 – Table on 10-15 and 10-16

More companies are storing all employee data in one master file or database

Documents Required from New Employees Form W-4, Withholding Allowance Certificate State W/H Allowance Certificate Local W/H Allowance Certificate Form I-9, Employment Eligibility Verification

Many businesses retain records for much longer than the required minimum. In some cases, the records are retained for as long as company is in business

Storage Methods Paper Micromedia Storage (microfiche, microfilm) Media Imaging (optical character recognition – OCR) Electronic Vaulting (offsite mirroring or shadowing)

Retrieval and destruction of records Companies must have a Policy governing

record retention, retrieval and destruction

Written Policy should clearly state retention periods, methods of retrieval, and methods of disposal and destruction

Consistently applied policy of retention and disposal can be good protection in the event of a lawsuit

HIPAA of 1996 Designed to help employees and their families

maintain health insurance coverage when the employees change or lose jobs

Provisions include requirements for the electronic exchange, privacy, and security of health information

Privacy Rule – April 14, 2003 - regulations governing individually identifiable health information applies to health plans, health care clearinghouses, and any health care provider who transmits health information in electronic form