Several federal rules set how long an employer keeps payroll paperwork, and they don't line up. This post puts them in one table, explains what counts as a payroll record, and gives a simple rule that covers all of them. Your state may require longer; check its labor department.
How long to keep payroll records: the federal minimums
The longest federal minimum for most small employers is the IRS's four years. Keeping every payroll record for at least four years after the tax for that period was due or paid, whichever is later, meets all the federal periods below.
| Record | Keep for at least | Rule |
|---|---|---|
| Employment tax records: W-4s, wages, tax withheld, deposits, Forms 941, 940, W-2 | 4 years after the tax is due or paid, whichever is later | IRS |
| Payroll records: name, hours, pay rate, earnings, deductions, total wages, pay dates | 3 years | FLSA (DOL Fact Sheet #21) |
| Time cards, wage rate tables, work schedules, records of additions and deductions | 2 years | FLSA (DOL Fact Sheet #21) |
| Form I-9 | 3 years after hire or 1 year after employment ends, whichever is later | USCIS |
| Personnel and employment records (hiring, firing, promotion) | 1 year (from termination for an involuntary termination) | EEOC |
| Payroll records under the Age Discrimination in Employment Act | 3 years | EEOC |
The EEOC adds that once a discrimination charge is filed, you keep the relevant records until the charge and any lawsuit are finally resolved.
What counts as a payroll record
The Department of Labor lists what the FLSA requires for each non-exempt employee. It sets no particular form, so a spreadsheet, payroll software export or paper ledger all qualify if they hold these items:
- Full name, Social Security number, address, occupation and sex, plus birth date if under 19.
- The time and day the workweek begins, and hours worked each day and each workweek.
- The basis of pay (hourly, weekly, piecework) and the regular hourly rate.
- Straight-time and overtime earnings for the workweek, all additions to and deductions from wages, and total wages paid each pay period.
- The pay date and the pay period covered.
For tax, the IRS side adds each employee's Form W-4, the federal and state tax withheld, deposit confirmations and copies of every return you filed.
Payroll register: the summary of each pay run Time card calculator
Do you need to keep pay stubs?
Keep a copy of each pay stub you issue with the payroll record for that pay date. No federal rule names the pay stub itself, but it shows the wages, deductions and pay period the FLSA and IRS rules require you to keep, so it is the easiest proof of what you paid. Several states require employers to give a pay stub, and some set how long to keep copies.
Employees should keep their own pay stubs at least until they have checked them against their Form W-2 for the year.
Where and how to keep them
Electronic records are fine. The Department of Labor says the FLSA requires no particular form, and records may be kept at the place of employment or in a central records office. Whatever you use, make sure you can produce a readable copy for an inspector or auditor.
- Keep each year's records together: pay working, stubs, W-4s, deposit confirmations, quarterly and annual returns.
- Back up electronic records somewhere other than the computer that runs payroll.
- Keep I-9s separately from personnel files, with their own retention date.
- When a period ends, delete or shred records containing Social Security numbers securely.
After an employee leaves
The clocks keep running after someone leaves. Their final-year payroll and tax records stay for four years after that year's taxes were due or paid, and the I-9 for one year after their last day or three years after hire, whichever is later. Former employees often ask for old pay stubs or a W-2 copy, so it helps to keep them findable.
Where PayDocs fits
PayDocs makes pay stubs and W-2 employee copies from your payroll figures. Documents you issue are kept unchanged in your free workspace, so you can download them again later; they are deleted only if you close your account. Keep your own copy with your payroll records as well, since your record-keeping duty stays with you. Previewing is free; a PDF is $4.99 per pay stub once checkout opens.
This is general information about US federal rules as of 8 October 2026, not tax or legal advice. State rules add to it; check your state's labor and revenue departments.
Questions
How long should an employer keep payroll records?
At least four years. The IRS requires employment tax records for at least 4 years after the tax is due or paid, whichever is later, which also covers the FLSA's 3 years for payroll records and 2 years for time cards.
Do you need to keep pay stubs?
Keep a copy of each pay stub with that pay date's payroll record. It shows the wages, deductions and pay period that federal rules require you to keep, and some states set their own rules for stub copies.
How long do you keep Form I-9?
Three years after the date of hire or one year after employment ends, whichever is later, according to USCIS. Keep I-9s separate from other personnel files.
Can payroll records be kept electronically?
Yes. The Department of Labor says the FLSA requires no particular form of record. Electronic records work if you can produce a readable copy when asked.
How long do you keep time cards?
At least two years under the FLSA, which covers time cards, wage rate tables, work schedules and records of additions to or deductions from wages. Many employers keep them with the four-year tax records.
Sources
- IRS: How long should I keep records?
- IRS: Publication 15 (2026), Employer's Tax Guide
- US Department of Labor: Fact Sheet #21, Recordkeeping requirements under the FLSA
- USCIS: Handbook for Employers M-274, retaining Form I-9
- EEOC: Recordkeeping requirements
Sources checked October 8, 2026. This article explains how pay documents work; it is not tax or legal advice.
