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Federal Payroll Record-Keeping Laws
No matter how many employees you have on staff, your organization is required to follow all federal laws.
Unfortunately, each state/locality can have its own specific laws governing payroll records; therefore, it is imperative to research what is required by each state where you have employees.
Federal Laws For Payroll Records
The Fair Labor Standards Act (FLSA) requires an employer to keep certain records for each non-exempt worker.
The Act requires no particular form for the records, but does require the records to include certain information about the employee and data about the hours worked and wages earned. Additionally, the law requires this information to be accurate and stored either on-site or at a secure off-site facility.
What You Need To Include
- An employee's first name, middle initial, last name, and Social Security Number.
- Daily or weekly earnings.
- Hours worked per week.
- How an employee's wages are paid, e.g. $15.25 per hour, $780 per week, piecework, etc.
- If applicable, the employee's hourly rate.
- Overtime pay for the week.
It is important to note that if an employee performs both tipped and non-tipped work during a workweek, the employer must keep separate records for hours worked under each job classification.
These records must be open for inspection by the Division's representatives, who may ask the employer to make extensions, computations, or transcriptions.
Document Storage Times
The FLSA requires every employer to preserve its payroll records, collective bargaining agreements, sales and purchase records
for at least three years. Records on which wage computations are based should be retained for two years, for example:
- Piecework documents/tickets.
- Records of additions to or deductions from wages.
- Time cards.
- Wage rate tables.
- Work and time schedules.
Other Requirements Under FLSA
The FLSA establishes a minimum wage, overtime pay, record-keeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.
For more information, the Department of Labor has put together the following helpful guides:
Again, remember to always research the applicable laws specific to the states and localities where you have employees as these may be different from the federal requirements above. If you'd like to learn more about your state-specific requirements, give us a call at (866) 946-2032 and we'd be glad to help you!
Lastly, as you prepare and maintain your payroll records, always keep in mind that
it is absolutely vital to protect the confidentiality and privacy of your employees' information.
What Do You Think?
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Toll Free Number: (866) 946-2032
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Upland, CA 91786
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About Southland Data Processing
Located in Upland
, CA and the Dallas Fort Worth area, we at SDP believe in putting people first, building long-term relationships, and delivering tailored payroll, HR, benefits administration, and workforce management solutions to meet each of our clients' unique needs.
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Copyright © Drip Marketing, Inc. All rights reserved. Any information in this publication is solely meant to provide general information for the reader and is not intended to constitute HR, financial, insurance or legal advice.
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