Maintaining proper records is crucial for any business, not only to keep operating smoothly but also to remain legally compliant. The length of time you need to retain employee and financial records can vary based on regulatory requirements and best practices. Here’s a guide from Citizens Business Archives on how long you should keep documents to stay compliant and protect your business.
How Long to Keep Employment Applications and Resumes
It’s advisable to keep employment applications and resumes for at least one year after the hiring decision. This helps protect your business in case of any disputes or allegations of discrimination during the hiring process.
Personnel Files Should Be Kept After the Employee Leaves
Personnel files, which include job descriptions and disciplinary actions, should generally be kept for the duration of employment plus seven years after the employee leaves. Storing these documents with Citizens Business Archives helps comply with employment laws and to defend against potential legal claims.
Payroll Records Should Be Retained for Four Years
Payroll records, including timesheets and tax withholdings, should be retained for at least three years, as required by the Fair Labor Standards Act. However, the IRS suggests keeping these records for four years to stay compliant with tax regulations.
Benefits Record Retention Is Set By ERISA
Records related to employee benefits should be kept for the duration of the plan plus an additional six years. This aligns with the requirements set by the Employee Retirement Income Security Act. Citizens Business Archives can help you index these documents for convenience.
The U.S. Citizenship & Immigration Services Mandate I-9 Form Retention
I-9 forms, which verify an employee’s eligibility to work in the United States, should be retained for three years after the date of hire or one year after employment ends, whichever is later. This is mandated by the U.S. Citizenship and Immigration Services.
Keep Tax Returns and Supporting Documents for Six Years in Case of Audits
Tax returns and supporting documents, including proof of income and expenses, should be kept for at least seven years. The IRS typically has a three-year period to audit your tax returns, but this can extend to six years if there’s a significant understatement of income. Whether you keep them for three or six years, Citizens Business Archives can store them.
Financial Statements Should Stay for Seven Years
Financial statements should be retained for at least seven years. These documents provide a comprehensive view of your business’s financial health and are essential for audits, financial analysis, and strategic planning.
Accounts Payable and Receivable Records, Including Payment Records
Accounts payable and receivable records should be retained for at least seven years. These documents include invoices, receipts, and payment records, which are vital for tracking your business’s financial transactions and reporting. Keep them safe with Citizens Business Archives.
Keep Loan Documents Even After You Pay Off the Loan
Loan documents, including promissory notes, loan agreements, and repayment schedules, should be kept for the duration of the loan plus an additional seven years after the loan is paid off. This guarantees that all relevant transactions are well-documented.
Get the Space You Need to Securely Store Your Documents
Maintaining proper records is a legal necessity for businesses. Understanding the retention periods for employee and financial records can help you be prepared for any audits or legal challenges. While the retention periods can vary, following these general guidelines will help keep your business well-organized and compliant.
For businesses looking to manage their records efficiently, Citizens Business Archives provides professional document storage to ensure that your documents are securely stored and easily accessible. Contact us to learn more about how our storage solutions and how we can help your business.







