Doing it Right
When dealing with such a sensitive issue as payroll records, employers have to ensure they balance seemingly conflicting rules. There are both provisions for retention of those payroll records and other regulations calling for their destruction. By trying to be conservative and keep payroll records around for audit or other purposes, many businesses fall short of the requirements to shred and dispose of them properly.
Satisfying Different Government Agencies & Regulations
Both state and federal agencies are now involved in many areas of Records and Information Management issues. These include the Department of Labor, the Internal Revenue Service, and the Small Business Administration, among others.
Some of these government groups and their regulations are concerned about the ability to audit and oversee payroll practices, while others are focused on protecting employee confidentiality. Combined with the many laws and regulations in this area, proper policies for shredding payroll records must be developed as part of an overall Records Information Management (RIM).
While it is important for a compliance officer to verify the exact compliance status and requirements, it is generally required that companies maintain three years of rolling payroll records. However, some human resource issues and ongoing cases may require a longer retention period. We recommend talking with legal counsel to determine how long your business should retain payroll records and in what form (paper vs. electronic).
Shredding Payroll Records as a Secure Service
One of the many items we shred — including paper and digital record destruction — is payroll documentation and personnel files. Shredding payroll records is just one the many document destruction services we provide.
While the SBA notes that records hoarding is a serious problem for many small businesses, we work with many Southern California businesses to help establish effective and affordable shredding programs. Our experienced team can visit with you and show how easy it is to deal with this potential security risk. Whether you need help with shredding payroll records or any other type of sensitive information or outdated files, we’re here to help when you call.
How often do you shred payroll records?