Regarding business records, the Internal Revenue Service requires that practices keep employment tax records for at least four (4) years after the date that the tax becomes due or is paid, whichever is later.
The law requires this information to be accurate.
The following is a listing of the basic records that a practice owner must maintain:
1. Employee's full name and social security number.
2. Address, including zip code.
3. Birth date, if younger than 19.
4. Sex and occupation.
5. Time and day of week when employee's workweek begins.
6. Hours worked each day.
7. Total hours worked each workweek.
8. Basis on which employee's wages are paid (e.g., "$10.00 per hour", "$500.00 a week").
9. Regular hourly pay rate.
10. Total daily or weekly straight-time earnings.
11. Total overtime earnings for the workweek.
12. All additions to or deductions from the employee's wages.
13. Total wages paid each pay period.
14. Date of payment and the pay period covered by the payment.
Each employer shall preserve for at least three (3) years payroll records, collective bargaining agreements, sales and purchase records. Records on which wage computations are based should be retained for two (2) years, i.e., time cards, wage rate tables, work and time schedules, and records of additions to or deductions from wages.
These records must be open for inspection by the Department of Labor. The records may be kept at the place of employment or in a central records office.