By Gay Reed, nQativ Software Design & Technical Documentation
To clean up your data or to keep it just to be on the safe side, that's the smoldering question. In this article, we'll attempt to extinguish all doubt by spelling out the data-keeping requirements of the IRS and the Department of Labor.
The categories of information you need to keep falls into five categories: payroll, receipts, purchases, expenses, and asset verification.
Payroll. Generally speaking, the IRS requires employers to keep income, social security, and Medicare tax records for employees for at least four years after the employee's personal income tax return is due and to keep unemployment tax information for at least four years after the due date of Form 940 or after the date FUTA tax was paid, whichever was later. Specifically, the IRS requires you to retain the following information for four years for each employee: