Tax Talk & Business Tips

When you’re running a business, document retention probably isn’t top of mind. But discard the wrong file too early, and you could face penalties, headaches in an audit, and a whole lot of unnecessary stress.

Here’s a clear breakdown of how long to keep common employee forms—and how to store them so you stay compliant and audit-ready.

1. Form W-4 (Employee’s Withholding Certificate)

Retention Period:

 Keep for 4 years after the date the related tax (income, Social Security, and Medicare) is due or paid—whichever is later.

Purpose:

Confirms you’re withholding federal income tax correctly, based on the employee’s instructions.

Storage:

Paper or electronic is fine, but you must be able to produce a hard copy for the IRS if requested. Electronic systems must meet IRS standards for authenticity, integrity, and accessibility.

Submission:

W-4s remain in your files. Only send to the IRS if specifically requested.

2. Form I-9 (Employment Eligibility Verification)

Retention Period:

Keep for 3 years after the hire date or 1 year after the employee leaves—whichever is later.

Purpose:

Verifies the employee’s legal right to work in the U.S.

Storage:

Acceptable formats include paper, microfilm, microfiche, or electronic. Records must be available for inspection by the Department of Homeland Security, Department of Labor, or Department of Justice.

Submission:

Do not file with the IRS or any other agency—retain for inspection only.

3. Payroll & Tax Record Retention

Retention Period:

Keep for 4 years after the tax is due or paid—whichever is later.

What to Include:

• • • • Employer Identification Number (EIN) and employee details

      • Dates of employment

      • Wage, annuity, pension, and benefit payment records

      • Tax deposit confirmations and acknowledgment numbers

      • Copies of filed returns and withholding certificates

      • Expense reimbursements with supporting documentation

Best Practices:

• • • • Clearly label and organize files

      • Store securely with access limited to authorized personnel

      • Safeguard sensitive personal data to prevent misuse

Why Retention Rules Matter

These aren’t just compliance checkboxes—they’re your safety net in the event of an audit or government inspection. Whether you store records in a secure cloud system or in a locked cabinet, make sure they are:

• • Accurate

  • Accessible

  • Stored for the correct retention period

Not sure what’s safe to shred and what should stick around longer? Certus Accounting & Tax Services can help you set up a retention system that keeps you compliant, organized, and audit-ready.

👉 Contact us today to protect your business and your peace of mind.