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What goes in a payroll file?

According to the Fair Labor Standards Act (FLEA), you must keep payroll records for at least three years. These records include records of wages paid, bonuses, and payments made to benefit accounts. Keep records that wage computations are based on for at least two years.

What is a payroll file?

The employee payroll file is the repository for everything that has to do with an employee's paycheck. The main reason to create a payroll file is to limit access to the rest of the confidential information that is located in the personnel file.

How do I label employee files?

Make sure to label employee names consistently: Last name, First name. An example of a clearly labeled document could be Smith.

What should not be kept in an employee personnel file?

Medical records. Do not put medical records into a personnel file. Form I-9s. Do not put Form I-9s into your employees' personnel files. Unnecessary material. Although an employee's personnel file may contain any other job-related documents, don't go overboard.

How Should personnel files be kept?

Employee files should be stored in a secure location and be kept strictly confidential. Access should be restricted to those with a legitimate need to know or as required by law. Several categories of records must be maintained according to specific requirements.

Should w4 be kept in personnel file?

As such, most, but not all, documents relating to employment should be kept in your employees' personnel files, including: The job application and resume of the employee. Your offer of employment to the employee. The employee's W-4 Form (Employee's Withholding Allowance Certificate).

Should garnishments be kept in a personnel file?

Wage garnishments do not go with the personnel file because there may be circumstances throughout the individual's employment where the personnel file may be used for other purposes such as: For a Limited Time receive a FREE Compensation Market Analysis Report!

What is the first step when setting up payroll?

Step 1: Choose a full-service payroll provider. Many payroll processing services, like Square Payroll, handle your payroll taxes, filings, new hire reporting for you, and allow you to complete payroll online. Sign up takes minutes so you can quickly start doing your own payroll the same day you sign up.

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