How Long Do I Keep Payroll Records In California

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The California Payroll Polka: How Long This Waltz Goes On?

Ah, California. Land of sunshine, beaches, and...payroll? Maybe not quite as glamorous, but hey, keeping your employees happy (and paid correctly) is key to running a smooth business. But here's the thing: those pesky payroll records, they pile up faster than sandcastles on a windy day. So, how long are you stuck sifting through them before you can finally shout "California, here I come!" for a record-shredding bonfire?

The Three-Year Hustle

California law (bless its bureaucratic heart) dictates that most payroll records gotta be kept for at least three years. Think of it as a three-year dance with your filing cabinet. This applies to things like:

  • Hours worked: Every minute meticulously documented, just in case someone claims they were tangoing with overtime pay.
  • Wages earned: Every penny paid out, because let's face it, disagreements over cents can get spicy.
  • Deductions and withholdings: Taxes, insurance, that mysterious "llama appreciation fund" some employees seem to have – gotta keep track of it all.

The Four-Year Foxtrot (For Some)

Now, things get a little more complicated. Since January 2022, a new California law requires employers to hold on to personnel records for a minimum of four years. This includes stuff like:

  • Application materials: Resumes, cover letters, the doodles they made while waiting for the interview (hey, it might reveal their artistic side!).
  • Disciplinary records: Because let's be honest, who doesn't love a good workplace drama re-read every now and then? (Although, maybe keep this one confidential).

The "Just in Case" Jive

Here's the kicker: these are just minimums. If you've got a feeling a lawsuit might be lurking in the shadows, it's always best to hold onto records for longer. Think of it as an extra slow dance with your filing cabinet – better safe than sorry!

So You Can Finally Shred, Right?

Maybe! But before you confetti-fy those records, double-check with a lawyer. They'll be able to give you the legal moonwalk on exactly what you need to keep and for how long.

Remember: This ain't rocket science, but it's important stuff. Keep your records organized, keep them safe, and keep yourself out of legal hot water. Now, go forth and conquer that California payroll polka!

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