Business Record Retention How Long Should You Keep Your Records?
Businesses maintain records (both paper and digital) to provide an accounting of the business activities performed by their respective organizations. Some examples of these files may be financial reports, human resource documents, tax filings, legal papers, or even just a single management report. With the rise and influx of these business records exponentially compiling every day companies are faced with an ever-increasing need to save on storage costs (both physical and digital), to be able to locate important files efficiently and to reduce compliance exposure. So where is a company to start?
Download the HR Personnel Record Retention Checklist (PDF)
>
data-form-id="5b4f99b8aa4a9944ea2261b0"
data-success-redirect=""
autocomplete="on"
method="POST"
action="https://judith-thomas-6n4c.squarespace.com"
onsubmit="return (function (form) {
Y.use('squarespace-form-submit', 'node', function usingFormSubmit(Y) {
(new Y.Squarespace.FormSubmit(form)).submit({
formId: '5b4f99b8aa4a9944ea2261b0',
collectionId: '',
objectName: 'post-5820d13c03596e905918522f'
});
});
return false;
})(this);"
>
Thank you for downloading the HR Personnel Record Retention Checklist!
One of the first questions asked when setting up an internal business records retention policy is which records should we keep? This inquiry is not always an easy one, but one that definitively needs an answer. Some business records should never be expunged and should always have a permanent file for future auditing purposes. Others will have a specified termination point in the future, and some don't easily fit into any category. For those later ones, a little bit of research may be required to determine industry, local, state, or Federal compliance laws for those weird papers.
The next question often asked is how long should I keep my records? Three, five, ten years? And what industry and compliance guidelines should apply. Many industries (law, healthcare, insurance) set their guidelines, so you'll want to check with your professional association in your state. There is a full gamut of information out there, but our hope here is to provide you with a general retention resource to get you started on your records retention journey.
Legal Requirements for Business Record Retention:
Federal, state and local compliance laws and regulations require you to retain documents for a specified number of years. And even certain document types may be subject to retention requirements by your state and local governments. Please note these suggested guidelines below are not the final authority, and they do not represent legal advice from DRS Imaging Services LLC. Additionally, there may be situations or industries that require longer periods of record retention than legally required. Contact your legal expert(s) or federal, state, or local government offices to ensure your document management procedures are in compliance with current legal requirements. The following information and links are general guidelines to get you started on your record retention policy.
Suggested Business Record Retention Guidelines:
Accounting | Suggested Retention |
Accounts Payable Ledger | 7 Years |
Accounts Receivable Aging Reports | 7 Years |
Accounts Receivable Ledger | 7 Years |
Accounts Receivable Invoices | 7 Years |
Accounts Written-off | 7 Years |
Authorization - Accounting | 5 Years |
Balance Sheets | Permanent Retention |
Bank Reconciliations | 7 Years |
Bank Statements | 7 Years |
Bank Deposit Slips | 3 Years |
Budgets | 3 Years |
Canceled Checks | 10 Years |
Cancelled Dividend Checks | Permanent Retention |
Cash Book | Permanent Retention |
Cash Disbursement & Receipt Record | Permanent Retention |
Cash Sales Slips | 7 Years |
Charge Slips | 7 Years |
Charts of Accounts | Permanent Retention |
Check Register | Permanent Retention |
Expense Reports | 7 Years |
Financial Statements | Permanent Retention |
General Ledger | Permanent Retention |
Investment - Sales/Purchases | Permanent Retention |
Journal Entries | Permanent Retention |
Petty Cash Records | 7 Years |
Profit/Loss Statements | Permanent Retention |
Purchase Order | 7 Years |
Subsidiary Ledger | Permanent Retention |
Trial Balance | Permanent Retention |
Vendor Invoices | 7 Years |
Voucher Check Copies | 7 Years |
Corporate Records | Suggested Retention |
Amendments | Permanent Retention |
Annual Reports | Permanent Retention |
Articles of Incorporation | Permanent Retention |
Audit Reports - Public | Permanent Retention |
Audit - Internal | 6 Years |
Board of Directors - Committee | Permanent Retention |
Board of Directors - Minute Book | Permanent Retention |
Bylaws | Permanent Retention |
Capital Stock Certificates | Permanent Retention |
Fixed Assets | Suggested Retention |
Depreciation Schedule | Permanent Retention |
Inventory Records | Permanent Retention |
Plans and Blueprints | Permanent Retention |
Plant Cost Ledger | Permanent Retention |
Property Appraisals | Permanent Retention |
Property Register | Permanent Retention |
Records for Property Subject to Depletion | Permanent Retention |
Accounting Firms | Suggested Retention |
Tax Return Preparers | 4 Years |
Tax Returns Prepared | 4 Years |
Human Resources | Suggested Retention |
Accident Reports - Settled | 7 Years |
Attendance Records | 7 Years |
Dental Benefits | 5 Years |
Disability Benefits - After Expiration/Settlement | 7 Years |
Employee Medical History | 7 Years |
Employment Application - Not Hired | 3 Years |
Garnishments | 5 Years |
Life Insurance Benefits | 5 Years |
Medical Benefits | 7 Years |
Pension Plan Agreement | Permanent Retention |
Performance Record - After Termination | 7 Years |
Personnel File - After Termination | 7 Years |
Personnel Files - Current Employees | Permanent Retention |
Profit Sharing Agreement | Permanent Retention |
Safety Reports | 5 Years |
Vacation Files | 4 Years |
Workers? Compensation Benefits | 10 Years |
Sick Pay | 4 Years |
Family & Medical Leave | 3 Years |
Insurance | Suggested Retention |
Automobile Insurance Claims | 10 Years |
Disability Insurance Claims - After Termination | 7 Years |
Expired Insurance Policies | 10 Years |
Fire Inspection Reports | 6 Years |
Insurance Appraisals | 6 Years |
Safety Records | 6 Years |
Foreign Insurance Policies | 3 Years |
Legal | Suggested Retention |
Bill of Sale | Permanent Retention |
Business Permits | Permanent Retention |
Claims & Litigation Concerning Torts & Breach of Contract | Permanent Retention |
Contract | Permanent Retention |
Contracts - Employees | Permanent Retention |
Contracts - Governments | Permanent Retention |
Contracts - Labor Union | Permanent Retention |
Contracts - Special | Permanent Retention |
Copyrights | Permanent Retention |
Correspondence - Legal | Permanent Retention |
Deeds & Titles | Permanent Retention |
Leases/Canceled | 10 Years |
Licenses | Permanent Retention |
Mortgages | Permanent Retention |
Notes Receivable - Canceled | 10 Years |
Patents | Permanent Retention |
Stock & Bond Record | Permanent Retention |
Trademarks - Registered | Permanent Retention |
Payroll | Suggested Retention |
Contractors | 3 years from date of completion of contract |
Checks - Payroll | 7 Years |
Commission Reports - Salesperson | 6 Years |
Employee Withholding Exemption Certificates | 10 Years |
Payroll Register | 4 Years |
Payroll Records - After Termination | 10 Years |
Salary History | 8 Years |
Time Reports | 7 Years |
W-2 Forms | Permanent Retention |
Vacation/Sick Pay | 4 Years |
Large Food or Beverage Establishment Reporting Tips | 3 Years |
Security | Suggested Retention |
Classified Material Violations | Permanent Retention |
Visitor Clearance | 2 Years |
Taxation | Suggested Retention |
Tax Free Reorganization | Permanent Retention |
338 Election | 7 Years |
Canceled Checks - Tax Payments | Permanent Retention |
Correspondence - Tax | Permanent Retention |
Depreciation Schedules | Permanent Retention |
Income Tax Returns | Permanent Retention |
Inventory Reports | Permanent Retention |
FUTA/FICA/Income Tax Withholding | 4 Years |
Payroll Tax Returns | Permanent Retention |
Revenue Agent Reports | Permanent Retention |
Sales Tax Returns | Permanent Retention |
Transfer Pricing | 4 Years |
Miscellaneous | Suggested Retention |
Receiving Documents | 10 Years |
Title Papers | Permanent Retention |
Vehicle Operating and Maintenance | 2 Years |
Telecommunication Copies | 1 Years |
Note: Documentation may include all electronic memos and files (including general ledger files, emails, digital tax files, PDF files, or any form of business record retention created and or stored electronically. All material presented is for general information use only and should not be acted upon without professional advice and assistance.
Within the organized chaos of establishing an effective business record retention policy, there is opportunity to organize, analyze and conquer your data.
In the midst of chaos, there is also opportunity.? Sun Tzu
For more information on business record retention and how DRS Imaging can customize the perfect solution for your document management needs, please contact us at 1-800-991-3704 at your convenience or fill out a short form to have one of our agents connect with you.
Get More Information
>
data-form-id="5820e2082e69cf31db26ca0d"
data-success-redirect=""
autocomplete="on"
method="POST"
action="https://judith-thomas-6n4c.squarespace.com"
onsubmit="return (function (form) {
Y.use('squarespace-form-submit', 'node', function usingFormSubmit(Y) {
(new Y.Squarespace.FormSubmit(form)).submit({
formId: '5820e2082e69cf31db26ca0d',
collectionId: '',
objectName: 'post-5820d13c03596e905918522f'
});
});
return false;
})(this);"
>
Schedule a Demo
Get a Price Quote
**Special Consideration** Sarbanes-Oxley Act
https://en.wikipedia.org/wiki/SarbanesOxley_Act
https://www.sec.gov/about/laws.shtml
For additional information on your state's business record retention guidelines please visit the following resources:
Alabama
http://tmpcpa.com/taxretention.php
http://www.archives.alabama.gov/officials/staterda.html
Alaska
http://archives.alaska.gov/records_management/records_management.html
Arizona
https://www.azlibrary.gov/arm/retention-schedules
https://des.az.gov/services/employment/unemployment-employer/employer-requirements-record-keeping
Arkansas
http://www.dfa.arkansas.gov/offices/intergovernmentalServices/Pages/recordRetentionSchedule.aspx
California
https://www.documents.dgs.ca.gov/osp/calrim/RecordsRetentionHandbook.pdf
Colorado
https://www.colorado.gov/pacific/archives/municipal-records-retention-manual
https://www.colorado.gov/pacific/archives/rm-faqs
Connecticut
https://www.cbia.com/resources/hr-safety/issues-laws/state-federal-recordkeeping-requirements/
Delaware
http://archives.delaware.gov/govsvcs/general_records_retention_schedules/index.shtml
http://regulations.delaware.gov/AdminCode/title5/100/101.shtml
http://www.cpacornerstone.com/taxretention.php
Florida
http://dos.myflorida.com/library-archives/records-management/general-records-schedules/
http://dos.myflorida.com/library-archives/records-management/
http://dos.myflorida.com/library-archives/records-management/dispose-of-public-records/
Georgia
http://www.georgiaarchives.org/records/retention_schedules
Hawaii
Idaho
https://history.idaho.gov/idaho-records-center-retention-schedules
Illinois
https://www.cyberdriveillinois.com/publications/pdf_publications/ard_pub5.pdf
https://www.cyberdriveillinois.com/departments/archives/records_management/faqlocal.html
Indiana
http://www.in.gov/iara/2739.htm
Iowa
http://www.klatt-assoc.com/taxretention.php
Kansas
https://www.kshs.org/recmgmt/retention_schedule_entries/browse
Kentucky
http://kdla.ky.gov/records/recretentionschedules/pages/default.aspx
Louisiana
Maine
http://www.maine.gov/revenue/rules/html/rule103.htm
http://www.countinghouseone.com/taxretention.php
Maryland
http://msa.maryland.gov/msa/intromsa/html/record_mgmt/homepage.html
http://www.ilmcorp.com/tools-and-resources/records-retention-guidelines
Massachusetts
https://www.cpa.net/resources/retengde.pdf
Michigan
http://www.mimanufacturers.org/Portals/0/Documents/Services/retentionguidelines.pdf
Minnesota
http://www.dsb-cpa.com/guidance/business-records-retention-schedule/
https://www.mn.gov/mmb/accounting/sema4/records-retention/
http://mn.gov/mnddc/council/business-req.html
Mississippi
http://www.dor.ms.gov/Laws-Rules/Pages/Record-Keeping.aspx
http://ffjcpa.com/taxretention.php
http://records.mdah.state.ms.us/sgrapfaq.php
Missouri
https://www.sos.mo.gov/archives/localrecs/schedules/
https://www.sos.mo.gov/CMSImages/LocalRecords/General.pdf
https://www.sos.mo.gov/records/recmgmt/retention/general
Montana
http://sos.mt.gov/records/Local/index.asp
http://www.bkgcpapc.com/taxretention.php
Nebraska
http://www.sos.ne.gov/records-management/retention_schedules.html
http://www.sos.ne.gov/records-management/
http://www.duttoncpa.com/taxretention.php
Nevada
http://nsla.nv.gov/Records/Local/Retention_Schedules/
http://www.nevadafinancialsolutions.com/taxretention.php
New Hampshire
http://sos.nh.gov/Arch_Rec_Mgmt.aspx
https://www.nhmunicipal.org/TownAndCity/Article/138
New Jersey
http://www.nj.gov/treasury/revenue/rms/retention.shtml
New Mexico
http://www.nmcpr.state.nm.us/records-management/responsibilities-and-mission
http://www.nmcpr.state.nm.us/NMAC/
New York
https://www.tax.ny.gov/bus/doingbus/recordkeeping.htm
http://www.schallandashenfarb.com/taxretention.php
http://www.rrstcpa.com/custom2.php
https://www.iucpa.com/record-retention.html
North Carolina
http://www.smithandsmithcpa.com/taxretention.php
https://www.shrm.org/resourcesandtools/tools-and-samples/policies/pages/cms_017186.aspx
North Dakota
https://www.nd.gov/itd/services/records-management
Ohio
http://www.desalvocpa.com/taxretention.php
http://apps.das.ohio.gov/rims/General/General.asp
http://wincleveland.org/Resources/Documents/7%20Record%20retention%20for%20small%20businesses.pdf
http://associationdatabase.com/aws/OADA/asset_manager/get_file/27112
Oklahoma
http://www.chancellorcpa.com/taxretention.php
http://www.coregroupus.com/local/RecordRetentionGuidelines.pdf
https://www.okc.gov/government/archives-records
Oregon
http://sos.oregon.gov/archives/Pages/records_retention_schedule.aspx
http://sos.oregon.gov/archives/Pages/records_retention_schedule_faq.aspx
http://www.pailthorpcpa.com/taxretention.php
Pennsylvania
http://www.pabulletin.com/secure/data/vol39/39-31/1396.html
http://www.lancasterlawblog.com/2009/09/articles/business-law/business-record-retention-schedule/
http://www.pacourts.us/assets/files/setting-850/file-173.pdf?cb=36cae5
Rhode Island
http://sos.ri.gov/divisions/frequent-filers/records-management
http://www.lgcpa.com/retention-guide
South Carolina
http://rm.sc.gov/generalschedules/Documents/genskedmun.pdf
https://www.shrm.org/resourcesandtools/tools-and-samples/policies/pages/cms_017186.aspx
http://rm.sc.gov/generalschedules/Documents/financial.pdf
South Dakota
http://www.nelsoncpas.com/taxretention.php
Tennessee
http://www.cdpcpa.com/taxretention.php
Texas
http://www.salley-clements.com/taxretention.php
https://www.tsl.texas.gov/slrm/recordspubs/rrs4.html
Utah
http://www.hintonburdick.com/taxretention.php
http://www.archives.state.ut.us/recordsmanagement/grs/stategrs.pdf
Vermont
https://www.sec.state.vt.us/archives-records/records-management/records-retention.aspx
http://www.ampeisch.com/taxretention.php
Virginia
http://www.ilmcorp.com/tools-and-resources/records-retention-guidelines
https://www.vscpa.com/Content/59284.aspx
http://www.tax.virginia.gov/content/recordkeeping-requirements
http://www.mcgrudercpas.com/tax-center/record-retention-guide/
Washington
http://www.ygacpa.com/taxretention.php
West Virginia
Wisconsin
http://sbasgroup.com/taxretention.php
http://www.co.washington.wi.us/uploads/docs/1_CCO_ordchap04exhibit.pdf
http://accountants.sva.com/docs/librariesprovider6/resources/records-retention-guide.pdf
Wyoming
http://wyoarchives.state.wy.us/RM/Retention.aspx
http://torringtoncpas.com/taxretention.php
Information for these business record retention guidelines were sourced from the following links:
1. http://www.berrydunn.com/uploads/1088/doc/Record_Retention_Guide.pdf
2. http://www.businessarchives.com/document-retention-requirements.asp
3. http://www.cpa.net/resources/retengde.pdf
4. http://www.fdic.gov/regulations/laws/rules/6500-2400.html
5. http://www.irs.gov/businesses/small/article/0,,id=98575,00.html
6. http://www.nfib.com/Portals/0/PDF/AllUsers/legal/guides/document-retention-policy-guide-nfib.pdf
7. http://www.smead.com/hot-topics/records-retention-guidelines-1394.asp
8. https://www.bbb.org/globalassets/local-bbbs/minneapolis-mn-147/media/documents/bbb-records-retention-schedule.pdf
9. https://www.aicpa.org/Career/Marketing/DownloadableDocs/SmallBusiness/SBToolkit_RecordkeepingGuide_Spreads.pdf