How Long Should You Keep Employee Records?

employee records

Anyone who works in HR knows: employee records add up. Between your records for past employees, current employees, and possible hires, it’s almost impossible to keep track of all the paperwork you have to deal with.

Is there a way to cut down on all of this?

You can keep your paperwork collection from getting too large by getting rid of old files. But there’s a certain amount of time you need to keep them before throwing them away.

Here’s how long to keep employee records.

How Long to Keep These Records

Figuring out how long you need to keep your employee records is not an exact science. But here are some good rules of thumb to get you started:

  • Hiring records: 1 year
  • Drug test records: 1 year (5 for transportation jobs)
  • Payroll: 3 years (5 years after termination)
  • Form I-9: 3 years after hire, 1 after termination
  • Benefits Information: 6 years
  • FMLA records: 3 years
  • Employment records: 3 years after termination

These rules are not flawless, but you should be keeping these files at least for this long.

Why are we being so cautious? Well, that’s because how the laws work depend on where you live …

A Word of Warning

Sometimes, state laws and federal laws differ. For example, here in Indiana, Payroll records need to be kept for 10 years, not 3. This is just one example of how things can be different.

When you notice any of these discrepancies, you should follow the longer rule. In our example, that means that you should be following the state law. But the state law is not absolute. If the federal law is longer, then you should follow that one instead.

It can be difficult to figure out when and how to keep employee records. And if you’re already running a business, or doing a thousand other HR jobs, how are you supposed to keep up on when these records are too old?

If you’re taking care of records on your own, it’s easy to let them pile up as you focus on other things.

What if there was an easier way?

Want to keep employee records safe?

What you need is records management. Professional records management will store all of your records for you, keep them organized and, most importantly, destroy them when the time comes. This keeps them out of your way when you don’t need them, and clean and organized when you do.

But, you may be thinking, this comes with its own set of problems.

What happens if you need the files? A lot of the time, you might be worried about getting them on time. When you need a file, you need it right then, not hours from when you ask for it. That’s why we provide our Fort Wayne clients with delivery within minutes, not hours or days.

If you’re looking for a records management service that is willing to work with you no matter what the time of day, then we’re your people. Get in touch to see how we can help you today!

What Is Records Management? Everything You Need to Know

what is records management

It’s a great feeling when your business is going well and growing. It’s every entrepreneur’s dream. With your growing success, how well are you keeping up the pace?

More business means more hands to do the job. It also means paperwork. More paperwork means you need a better system to stay organized. But, you already knew that. The trouble is, when you search the internet for details on how to manage your records, you’ll hit some confusion along the way. Like document management and record management. What is records management?

This guide gives you a quick rundown of everything you need to know about records management and why you need it ASAP.

What is Records Management?

First, let’s take a closer look at what records management means. Records management is the practice of archiving or keeping documents that are of an important nature.

These documents are made up of:

  • Paper
  • Electronic forms
  • Files
  • Emails
  • Faxes
  • Contracts
  • Leases
  • Vendor communications
  • Etc.

Records management also establishes policies and procedures for maintaining these records.

Why Do We Need Records Management?

The idea behind why we need records management is simple. We use records management is to:

  • Control our records
  • Simplify the way records are stored
  • Ensure the security of our records
  • Easily locate the records when they’re needed
  • Determine how long records need to be retained
  • Cut the amount of data that is no longer needed or obsolete

The next question you’ll need to ask yourself is: Do you want your records management done on-site or off-site?

Records Management Company in Fort Wayne

As you can see, it’s vital to have a proper record management system for your business. You need to keep your documents secure and easily retrievable to keep your business running smoothly.

If you’re looking for off-site records management, look no further! Let Federal Records Management and Shredding in Fort Wayne be your document keepers!

We are a locally owned, operated, and AAA-certified document management company in the greater Fort Wayne area.  In fact, we’re the only locally-owned and operated document management company in Fort Wayne!

If you need proper disposal of your documents and records, we offer those services, too. We offer on-site and off-site secure document shredding and computer hard drive destruction.

We have a team of experienced professionals who will work with you. They will help develop a plan to efficiently manage your records and information.

So contact us and let us help you manage your important records today!

Information Management: The Key to an Efficient Staff and Effective Business

information management

Almost all businesses or organizations have records, documents, and other types of information that need to be retained. The right information, at the right time, is essential for staff, clients, and management. Managing information so that it is accessible, usable, accurate, and complete — all in a timely and cost-effective manner — is no small feat. However most businesses do not have an organization-wide system is in place and managing records and information becomes the responsibility of “everyone” … which — as anyone working in today’s hectic, multitasking workplace knows — likely means “no one”.

Why Your Business Needs Information Managment

All too often, the importance of records management becomes clear only AFTER one of the following problems has occurred:

  • managers are spending too much time waiting for records or crucial pieces of information
  • staff is spending too much time searching for information files or information needed by customers or clients
  • filing systems are strained and costly office space is being taken up to house no-longer-needed files
  • important, private, or confidential information is accessible to unscrupulous people and exposed to theft or fraudulent use
  • important records are improperly stored — exposing them to humidity, mold, dirt, rodents or insects — and permanently damaged
  • there is a crisis — either physical (e.g. broken water pipes, fire, smoke damage) or professional (e.g. an audit, a lawsuit) — ruining crucial records and exposing to the public the organization’s poor level of records management

Avoiding these problems just makes sense. It also makes sense to allow your staff and business to run as effectively, productively, and efficiently as possible. Leave the records management to the professionals! Federal Records Management & Shredding in Fort Wayne offers all the services, security, and cutting-edge technology to manage and protect your information for you — saving you time and money, and giving you peace of mind.

How Long Should You Keep Business Records?

how long to keep business records

Business Record Retention

Many business owners and office managers wonder how long records need to be kept — and which ones, specifically? The answer generally depends on the aspect of your business to which the record pertains; e.g. taxes? hiring? regulations? etc. There are a wide range of legal, accounting, and regulatory guidelines for records retention. The answer can also vary depending on your specifics business type or industry.

Keep in mind that electronic communications and documents also need to be included for preservation.

Here are some basic guidelines:

Business Income Tax Returns and Supporting Documentation

Income tax returns for your business and their supporting documents should be kept for 7 years (the period of limitation by which either you may seek to amend your tax return, or the time in which the IRS may audit your tax return).

Employment Tax Records

Employment tax records should be kept for 4 years (including information such as your employer identification number; amounts and dates of wages paid; annuity and pension payments; names, addresses, social security numbers, and dates of employment of employees)

Business Asset Records

Business asset records should be kept “until the period of limitations ends from the year you disposed of the property” according to the IRS (to help you calculate depreciation, amortization, and gains or losses on that property)

Business Ledgers and Other Key Documents

Business ledgers and other key documents including financial statements, annual reports, corporate by-laws and amendments, Board of Director information, and annual meeting minutes should be kept permanently.

Human Resources Files

Human resource files should be kept for 7 years after an employee has left or been terminated (for job applicants who were not hired = 3 years; for an employee who suffered an accident on the job = 7 years)

Other Business Records

  • Canceled Checks = 7 years
  • Bank Account and Credit Card Statements = 7 years
  • Ownership Records = permanently (including articles of incorporation, director and shareholder meeting minutes, stock ledgers, etc.)

(Note: These suggestions should not take the place of consulting with a professional to make sure you are in compliance with requirements specific to your industry and organization.)

Business Document Storage and Management in Fort Wayne

It’s understandable why business people everywhere feel confused by requirements and regulations AND swamped with paperwork. That’s how Federal Records Management & Shredding can help! Business records management is important that’s why our staff is always up-to-date on the latest requirements for records retention. We can train your staff to understand these requirements and regulations, too which can reduce your liability. And, we offer state-of-the-art records retention storage, databases, and one-day record retrieval services — all right here at our convenient to downtown Fort Wayne location.

To avoid identity theft and protect sensitive business information, be sure to properly destroy business records that you no longer need to retain— another important reason to use Federal Records Management & Shredding!

What Is Records Management? Why Is It Important?

what is records management

Records management. We talk a lot about it around here. In fact, it’s not only in our name, it’s in our blood. However, few may know what it is or why it’s important to their company.

What is Records Management

Records are the documents that provide all the important evidence of your company’s business. Medical records, business documents, legal filings, or other sensitive information are all obvious records that should be kept. Other pieces of information related to your business may need to be kept as well. All the information created, sent and received in the course of doing business is potentially a record. They keep track of what happened, who made the decision, and what was expected to happen next.

Records management is the handling and storage of those important documents.

 

Why is Records Management Important?

Managing information — keeping it, tracking it, and being able to retrieve it — protects your business and makes everyone’s job easier. If your records are well-managed you can:

  • easily locate documents or information when needed
  • reuse previous documents, information, or completed work to avoid “re-creating the wheel”
  • determine the most recent, or official, version of a document
  • prove why a decision was made or a process implemented
  • keep important documents and sensitive information secure
  • protect yourself, your clients, and your business

Records Management in Fort Wayne

However, most businesses do not have the time, space, or resources to effectively manage their records. That’s where we come in.

Locally-owned and operated Federal Records Management and Shredding in Fort Wayne can save your company time, reduce liability, and save money by managing this process for you. We offer climate-controlled storage location, online record management system, and highly trained information security professionals to meet your information management needs. Some specific services we offer, include:

We offer:

  • a secure storage facility with 24/7 surveillance inside and out.
  • secure pickup and delivery of your documents when you need them (being locally-operated, we offer extremely quick access to your documents)
  • indexing and barcoding allow for tracking records every step of the way and facilitates quick retrieval by providing information on the contents of every box
  • secure document destruction — when records have reached the end of their life-cycle, they can be shredded at our AAA-certified facility

The professional team at Federal Records Management & Shredding works hard to manage and protect your important information by offering state-of-the-art, records management services.

Need help managing your documents? Contact Federal Records Managment & Shredding today at (260) 267-9652 to learn more.

Can Using a Records Management Company Reduce My Liability?

benefits of records management

Importance of Records Management in an Organization

Any business dealing with personal, medical or financial information must understand the potentially devastating consequences that can result from allowing unapproved access to sensitive and confidential information. The list of specific regulations that address information security compliance is lengthy — to mention a few:

  • HIPAA or the Health Insurance Portability and Accountability Act,
  • The Sarbanes-Oxley Act
  • Family Educational Rights and Privacy Act (FERPA)
  • Gramm Leach Bliley Act (GLBA)
  • and many more

Unfortunately, the regulations are not written in a way that is easily understood. Security professionals from a certified records management company such as Federal Records Mangement & Shredding in Fort Wayne can explain:

  • which laws apply to your business
  • what the laws mean for your business’s liability
  • and how best to implement compliance with regulations

Every major data protection regulation includes a requirement that organizations have written data protection policies and procedures. Proof of working with a certified records management and destruction company is a key element in proving compliance and reducing your liability should any information-related legal issues arise. Proof that your employees have been trained in information management by professionals from a certified records management company also is crucial for reducing your liability.

Benefits of Records Management

Federal Records Management & Shredding can help protect you, your documents and your business. There are many benefits of records management. Not only can we help you understand the regulations and train your employees in appropriate compliance procedures, we can also:

  • organize and retrieve information when needed
  • protect important and confidential records
  • minimize storage requirements
  • reduce operating costs
  • improve office efficiency
  • ensure regulatory compliance
  • minimize the risk of litigation and/or penalties
  • maintain retention and destruction schedules

Document security, including storage, destruction, and regulations compliance is our specialty. Contact Federal Records Mangement & Shredding today to ensure you understand the legal ramifications of non-compliance and to establish appropriate policies to protect your business now and avoid compliance issues in the future.

Records Management: Onsite or Offsite?

offsite records management fort wayne

Should You Store Your Records Onsite or Offsite? Which is Best?

In most industries and businesses, important records, confidential documents, and information need to be stored, organized and quickly retrievable. However, attempting onsite records management in your own business can quickly become a cumbersome, time-consuming task — wasting valuable space, your time, and that of your employees.

Offsite storage and management solutions offer many benefits over onsite storage. It is an efficient, cost-effective, and secure way to manage and protect your business and its records. Offsite storage from a reputable and certified records management company provides:

  • Security: monitored access to the facility, certified document, and hard drive destruction
  • Flexibility and Efficiency: records pickup and delivery services, online access to your inventory 24 hours a day
  • Cost-Effectiveness: free up expensive office space, allow you and your employees the time to fully focus on your business efforts

At Federal Records Management & Shredding, we help business more efficiently manage important and confidential documents in our secure, climate-controlled facility.

Records Mangement  in Fort Wayne

Federal Records Management and Shredding is the greater Fort Wayne area’s only locally owned and operated, AAA certified document management company. Read more about our records management services. Beyond records management and storage, we also offer onsite and offsite secure document shredding and computer hard drive destruction. Our trained and experienced professionals will work with your business to a develop a plan to manage your records and information as effectively as possible.

Contact us today!

Keep Your Files Secure

keeping documents secure

It’s All About SECURITY

Are your confidential documents secure? Doctors’ offices and medical facilities are keenly aware of the legal and financial ramifications of non-compliance with HIPAA (the Health Insurance Portability and Accountability Act). Similar regulations apply to business documents across almost all other industries, any that handle financial data or must comply with consumer privacy laws. Whether the confidential information belongs to your clients, your patients, or your employees, your business can be held accountable for any failures to keep that information secure. Your business’ intellectual property can also be put at risk if it is not properly managed. Protecting yourself and your company from data, document, or identity theft is just part of doing business in today’s world.

Protecting your business information is multi-faceted, requiring:

  • a secure physical storage space for documents
  • secure destruction of information stored on computers
  • proper destruction of important business or client information documents

Appropriate space, management and procedures for each of these aspects will:

  • protect your clients, customers or patients
  • protect your corporate knowledge
  • protect your business should any legal concern arise

Protect yourself and your business by using a professionally certified document storage and destruction facility like Federal Records Management & Shredding. Our locally owned and operated document management company is a AAA-certified member of the National Association for Information Destruction (NAID). Document security and regulations compliance is our specialty.

Talk to Federal Records Management & Shredding about how we can help your business meet those goals — economically, thoroughly and without hassle or worry.