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Home | Business | Outsourcing On the federal level, there are two agencies that regulate record keeping. First is the IRS, which is responsible for enforcing the Internal Revenue Code. The second is the U.S. Department of Labor (DOL). The Wage and Hour Division of the DOL is responsible for enforcement of the Federal Fair Labor Standards Act (FLSA), the Family and Medical leave Act (FMLA), the Immigration Reform and Control Act (IRCA), and the laws governing wages paid by federal government contractors. Both of these agencies have separate rules regarding the type of records that must be kept and the length of time you must keep the records. To further complicate your requirements there are numerous state, local and other regulatory agencies that may require additional record keeping. State agencies enforce State Unemployment Insurance Tax Acts, state wage and hour laws, child support and creditor garnishment laws and unclaimed or abandoned wage requirements. Keeping these records accurate and up-to- date is extremely important to the health of your business. Without the proper records you will be unable to meet regulatory requirements should you be audited by any of various federal state and local agencies. Failing to meet these requirements can mean large penalties and the potential for large settlement awards should you be unable to provide the required information when requested. Internal Revenue Service The following records must be kept for four years after the tax due date or the actual date paid.
Department of Labor The following records must be kept for three years after date of last entry.
Department of Labor In addition to the general requirements of both the IRS and the DOL mandated by several federal acts. They are: Family and Medical Leave Act Dates FLMA leave is taken Hours worked by employee in last 12 months Hours of FLMA leave for exempt employee Copies of employee notice to employer Copies of general and specific notes given to employees Copies of policy regarding taking of paid and unpaid leave by employee Documents verifying premium payments of employee benefits Records of FLMA leave disputes between employee and employer Title VII of the Civil Rights Act of 1964 and the Americans with Disability Act of 1990 have no general record requirement under the law, but to meet the requirements all records relating hiring, promotion, demotion, transfer, layoff or termination, rates of pay, and selection for training or apprenticeship should be kept for one year from date of action. The Age Discrimination in Employment Act of 1967 requires that you keep the following records for three years:
You also keep the following for one year from the date of action:
You also must keep all records related to
The Immigration Reform and control Act requires that you must retain copies of the I-9 Form for three years after the date of hire. Article Source: http://www.articlewheel.com
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice. Mr. Read is the author of “How to Start a New Business.” To find professional payroll service at a budget price go to www.PayrollonaBudget.com a paperless payroll company. For a full service payroll bureau with CPA’s on staff visit www.CustomPayroll.com . See an excerpt of Mr. Read’s interviews from William Shatners “Heartbeat of America” television show on the web sites linked above.
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