Document Retention Schedule
Document Retention Schedule: Depending on the the amount of paperwork you have held on to throughout the years at your home office or at work; you may find satisfaction in starting with what you can toss or shred immediately. Then move on to planning your long term and short-term storage areas and file solutions. Files that are one to two years old should be kept more accessible and files that are 3 years or older can be moved into long-term storage.
By planning storage needs ahead of time, you’ll be able to easily move your bank statements, tax records and other business files into the correct bins, file cabinets and cardboard boxes, depending on the date of the document and the tips below. This is in addition to money savings in storage fees reduction.
Due to the large magnitude of legal requirements, as well as the specific needs of each company, it is advisable to consult legal counsel / CPA before implementing a tailored records retention policy. In addition to these general guidelines, each business should consider any industry standards that may affect the holding period of records due to unusual legal circumstances.
The retention periods below reflect requirements currently in effect. Because record retention periods are constantly changing, it is necessary to evaluate record retention policies and programs periodically.
Accounting Records |
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| Auditors’ report and annual financial statements | Permanent |
| Bank reconciliations | 7 years |
| Bank statements and deposit slips | 7 years |
| Budgets | 2 years |
| Cancelled checks (general, payroll, payroll-related taxes) | 7 years |
| Cancelled checks (fixed assets and income taxes) | Permanent |
| Cash disbursements journal | Permanent |
| Cash receipts journal | Permanent |
| Correspondence | 3 years |
| Currency transactions reports | 5 years |
| Dividend checks | Permanent |
| Employee expense records | 7 years |
| Fixed assets records (invoices, depreciation schedules) | Permanent |
| Financial statements (annual) | Permanent |
| Freight bills | 4 years |
| General ledgers and year-end trail balances | Permanent |
| Inventory records | 7 years |
| Open accounts (MI) | 6 years |
| Petty cash vouchers | 4 years |
| Production and sales reports | 7 years |
| Promissory notes (MI) | 6-10 years |
| Purchase journals | Permanent |
| Purchase orders | 7 years |
| Subsidiary ledgers (accounts receivable, accounts payable, etc.) | 7 years |
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Administrative and Corporate Records |
|
| Annual reports | 6 years |
| Articles of incorporation (and any amendments) | Permanent |
| Ballots and proxies | 6 years |
| Buy-sell agreements | Permanent |
| By-laws | Permanent |
| Capitol stock and bond records | Permanent |
| Contracts and leases (after expiration) | 7 years |
| Copyright and trademark records | Permanent |
| Dividend registers | Permanent |
| Government contracts and subcontracts | At least 3 years |
| Insurance records, policies, etc. | Permanent |
| Legal correspondence | Permanent |
| Liquidation of subsidiaries records | Permanent |
| Mergers and combinations records (antitrust) | Permanent |
| Minutes | Permanent |
| Mortgages and notes (after expiration) | 6 years |
| Oral contracts memorandum (MI) | 6 years |
| Patents and patent licenses | 26 years |
| Partnership agreements | Permanent |
| Real estate title documents (MI) | 15 years |
| Reorganization records | Permanent |
| Securities offer or sales records | Permanent |
| Stock certificates and ledgers | Permanent |
| Union (labor) contracts | Permanent |
Environmental Protection Records |
|
| Judicial, administrative and compliance documents | Permanent |
| Permits | Permanent |
| NPDES monitoring records | 3 years |
| RCRA generator’s manifests, biennial reports, test results, waste analyses | 3 years |
| RCRA land ban documents | 3 years |
| Air emissions — renewable operating permit monitoring records | 5 years |
| Air emissions — continuous emissions monitoring system records | 2 years |
| EPCRA — TRI reports/documents | 3 years |
| USTs — sampling, testing and monitoring records | 2 years |
| USTs — tank and piping tightness testing records | 5 years |
| USTs — closure records | 3 years |
| TSCA — PCB generator manifests | 3 years |
| TSCA — PCB spill cleanup records and decontamination certifications | 5 years |
| TSCA — Section 8(a) reports, documents and customer notices/return receipts | 3 years |
Personnel Records |
|
| §6047(b) trust or retirement plan contribution | Until distributed |
| Collective bargaining agreements | 6 years |
| Employment application (from date of termination) | 3 years |
| Employee files (current employees) | Permanent |
| Employee files (after termination) | 7 years |
| Employee manuals/handbooks | Permanent |
| FICA records | 4 years |
| FMLA documents | 3 years |
| Form I-9 Employment Eligibility Verification (after date of hire) | 3 years |
| H-1B labor conditions application public access file | 1 year after expiration |
| Paychecks, W-2 Forms, W-4 Forms, 1099 Forms | 7 years |
| Payroll records | 7 years |
| Preparer information | 3 years |
| Time cards and daily time reports | 4 years |
| Unemployment insurance (MI) | 6 years |
| Wage and hour records | 5 years |
| Workers’ compensation (MI) | 2 years |
Employee Benefit Plans |
|
| Documents filed subject to Labor-Management Reporting and Disclosure Act of 1959 | 5 years |
| ERISA plan documents | 6 years |
| Pension/profit-sharing informational returns (Form 5500) | Permanent |
| Plan and trust agreements | Permanent |
| IRS approval letter | Permanent |
| Actuarial reports | Permanent |
Health and Safety Records |
|
| Asbestos monitoring/employee exposure measurements | At least 30 years |
| Chemical and toxic exposure records | At least 30 years |
| Employee exposure medical records and workers’ allegations | 5 years |
| Occupational injury/illness records | 5 years |
| Occupational radiation exposure records | Authorized by Dept. of Energy |
Tax Records |
|
| Business income tax | 6 years |
| Cigarette and tobacco tax | 4 years |
| Employment security tax | 4 years |
| Federal income tax | 6 years |
| Financial reports (annual) | Permanent |
| Financial statements | 4 years |
| Payroll tax returns | Permanent |
| Sales and use tax | Permanent |
Individual Records |
|
| Tax returns, W-2, 1099 (after filing) | 6 years |
| Loan records (after payoff) | 6 years |
| Medical bills (after payment) | 6 years |
| Insurance policies (after expiration) | 6 years |
| IRA records (after termination) | 6 years |
| Major purchase receipts | 6 years |
| Schedule K-1 (after disposition of interest) | 6 years |
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