Record Retention

FINANCIAL REPORTS

Retention Periods

Analysis of gross and net fees by service classification: 7 years

Audit reports: Permanently

Bank deposit slips: 4 years

Bank reconciliations: 4 years

Bank statements: 4 years

Canceled checks (regular): 7 years

Canceled checks: important payments, taxes, purchases of property, special contracts, etc. (file these with their related papers): Permanently

Cash books: 7 years

Cash receipts and disbursements journals: 7 years

Charts of accounts: 7 years

Daily cash reports: 4 years

Financial statements: Permanently

General ledgers: Permanently

General/private ledgers, year-end trail balance: Permanently

Interim statements-consolidated: 7 years

Internal audit reports: 3 years (longer retention periods may be desirable)

Journal vouchers: 7 years

Journals: 7 years

Monthly statements-operating offices: 7 years

Payroll records (W-2s, 940s, 941s, etc.) : 7 years

Payroll records and summaries: 7 years

Periodic financial reports: 4 years

Petty cash vouchers: 4 years

Subsidiary ledgers: 7 years

Tax returns and worksheets, revenue agent's reports and other documents relating to determination of income tax liability: Permanently

Work papers (operating and consolidated): 7 years

ASSETS

Retention Periods

Changes to clients' vouchers: 7 years

Client charges and billing reports: 7 years

Contracts, mortgages, notes and leases (expired): 7 years

Contracts, mortgages, notes and leases (still in effect): Permanently

Deeds, mortgages and bills of sale: Permanently

Depreciation schedules: 7 years

Equipment records: 5 years after disposition

Insurance documents, including policy reports, claims and coverage information: 3-10 years after expiration or settlement

Insurance policies (expired): 3 years

Insurance records, current accident reports, claims, policies, etc.: Permanently

Inventories of products, materials and supplies: 7 years

Notes receivable ledgers and schedules: 7 years

Physical inventory tags: 3 years

Property appraisals by outside appraisers: Permanently

Property records, including costs, depreciation reserves, year-end trial balances, depreciation schedules, blueprints, plans and permits: Permanently

Scrap and salvage records: 7 years

Stockroom withdrawal forms: 1 year

Training manuals: Permanently

INCOME AND EXPENSES

Retention Periods

Expense analyses/expense distribution schedules: 7 years

Expense reports: 7 years

Sales commission reports: 4 years

Sales records: 7 years

PAYABLES AND RECEIVABLES

Retention Periods

Accounts payable ledgers and schedules: 7 years

Accounts receivable ledgers and schedules: 7 years

Invoices (to customers, from vendors): 7 years

Purchase orders (except purchasing department copy): 1 year

Purchase orders (purchasing department): 7 years

Remittance advice: 1 year

Vendor invoices: 7 years

Vouchers for payments to vendors and employees (includes allowances to and reimbursement of employees, officers, etc., for travel and entertainment expenses): 7 years

CORPORATE REPORTS

Retention Periods

Capital stock and bond records: ledgers, transfer registers, stubs showing issues, record of interest coupons, options, etc. : Permanently

Minute books of directors, stockholders, bylaws and charters: Permanently

Partnership and corporate records, including:

- local, state and federal licenses

- annual reports

- capital stock and bond ledger

- canceled stock and bond certificates

- articles of incorporation

- bylaws and minutes from partner meetings or board meetings : Permanently

HUMAN RESOURCES

Retention Periods

Accident reports and injury claims (Worker's Compensation): 11 years

Affirmative action compliance plans: 1 year following completion of contract

Age work certification records for minors: 3 years after termination

Applications (Non-hires): 1 year

Attendance records/time cards/time reports: 4 years

COBRA Records: 3 years

Disability/sick pay benefits: 4 years

EEO-1 forms : 5 years

Education/training records: 3 years

Employee Benefit Plans: 4 years following termination of plan

Employee Medical Records and Analysis as required by OSHA: The duration of employment plus 30 years

Employment advertisements: 3 years

Employment contracts: 7 years after expiration date

ERISA benefit plan descriptions/modifications, annual reports, SPDs: Indefinitely

Garnishments: 7 years

Grievance records: 5 years

I-9 Forms: 3 years from date of hire or 1 year after termination, whichever is longer

Injury reports (OSHA Logs): 5 years

Job descriptions: Until superceded

Labor contracts: Indefinitely

Material Data Safety Sheets: Duration of employment plus 30 years

Medical and exposure records relating to toxic substances: 40 years

OSHA Training Documentation: 3 years

Paychecks: 8 years

Pension payments and records: 3 years after death

Personnel data and files (re: hiring, promotion/demotion, transfer, layoff, termination, compensation, etc.): 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

Retirement and pension records (plan documents, claims, applications, etc.): Permanently

Union agreements: 3 years from last effective date

Wage rates and changes, deductions/additions to pay: 4 years

Withholding tax statements: 7 years

Workers' compensation records: 3 years

Since situations vary, we suggest that you consult legal counsel before you dispose of any important Human Resources records.