record retention policy guidelines

Record Retention Policy Guidelines

Presented by Aldrich CPAs + Advisors

If you’re wondering how long you should hold on to tax returns, bank statements and other financial records for your business or personal affairs, consult the list below for our recommended record retention guidelines. While it’s always better to err on the side of caution, if you’re concerned about an audit that may reach back further, reach out to your Aldrich Advisor for any extraneous circumstances.
How long should I keep this document? Recommended Retention Time Period
Accounts payable ledgers and schedules 7 years
Accounts receivable ledgers and schedules 7 years
Audit reports of accountants Permanently
Bank reconciliations 1 year
Bank statements 3 years
Capital stock and bonds records; ledgers, transfer registers, stubs showing issues, record of interest coupons, etc. Permanently
Cash books Permanently
Charts of accounts Permanently
Checks1 (canceled) 7 years
Checks1 (canceled for important payments, e.g. taxes, purchases of property, special contracts, etc.) Permanently
Contracts, mortgages, notes and leases (expired) plus related schedules 7 years
Contracts and leases (still in effect) Permanently
Correspondence (routine) with customers or vendors 1 year
Correspondence (general) 3 years
Correspondence (legal and important matters only) Permanently
Deeds and bills of sale Permanently
Depreciation schedules Permanently
Duplicate deposit slips 1 year
Expense analyses and expense distribution schedules 7 years
Financial statements (year-end, other months optional) Permanently
General and private ledgers (and year-end trial balances) Permanently
Insurance policies (expired) 3 years
Insurance records, current accident reports, claims, policies, etc. Permanently
Internal audit reports2 3 years
Internal reports (miscellaneous) 3 years
Inventories of products, materials and supplies 7 years
Invoices (to customers and from vendors) 7 years
Journals Permanently
Minute books of directors and stockholders, including bylaws and charter Permanently
Option records (expired) 7 years
 Patents and related papers Permanently
Petty cash vouchers 3 years
Physical inventory tags 3 years
Plant cost ledgers 7 years
Property appraisals by outside appraisers Permanently
Property records, including costs, depreciation reserves, end-of-year trial balances, depreciation schedules, blueprints and plans Permanently
Purchase orders (except purchasing department copy) 1 year
Purchase orders (purchasing department copy) 7 years
Receiving sheets 1 year
Requisitions 1 year
Sales commission reports 3 years
Sales records 7 years
Savings bond registration records of employees 3 years
Scrap and salvage records (inventories, sales, etc.) 7 years
Stockroom withdrawal forms 1 year
Subsidiary ledgers 7 years
Tax returns and worksheets, revenue agents’ reports and other documents relating to determination of income tax liability Permanently
Time book/cards 7 years
Trademark registrations and copyrights Permanently
Training manuals Permanently
Voucher register and schedules 7 years
Vouchers for payments to vendors, employers, etc. (including allowances and reimbursement of employees, officers, etc. for travel and entertainment expenses) 7 years
Withholding tax statements 7 years

1 Checks should be filed with the papers pertaining to the underlying transaction.
2 In some situations, longer retention periods may be desirable.

How long should I keep payroll records?

How long should I keep this document? Recommended Retention Time Period
Accident reports and injury claims (workers’ compensation) 11 years
Age work certification records for minors 3 years after termination
Applications (non-hires) 1 year
Attendance records 4 years
COBRA records 3 years
Employee medical records and analysis as required by OSHA The duration of employment plus 30 years
Employee benefit plans 2 years following termination of plan
Employment advertisements 3 years
ERISA retirement and pension records Permanently
Garnishments 7 years
I-9 Forms 3 years after employment begins or 1 year beyond termination, whichever is later
Labor contracts and union agreements Permanently
Material safety data sheets or some identification of substance used or found The duration of employment plus 30 years
Medical and exposure records relating to toxic substances 40 years
OSHA logs 5 years following the end of the years to which they relate, plus current year
OSHA training documentation 3 years
Paychecks 8 years
Payroll records, including name, address, social security number, wage rate, number of hours worked daily, weekly gross wages, deductions, allowances claimed and net wages 6 years
Personnel file records, including application, pre-employment tests, performance appraisal, rate/position changes, transfers, promotions, demotions, documentation of disciplinary actions and job descriptions 6 years after termination
Records pertaining to unfair or discriminatory employment practices and Americans with Disabilities Act Until the final deposition of charge or action

The advice and information contained on this page are offered for reference purposes only and are not exhaustive of all pertinent facts or a comprehensive analysis of all relevant tax issues or authorities. This content should not be considered as professional or legal advice. We strongly recommend consulting with a qualified tax or accounting professional to obtain specific advice or to address your particular circumstances.

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