how long to keep employee files

Andrew McCaul

Is your important paperwork piling upwardly? Check out our piece of cake-to-use chart to see what to go along, what to toss, and how to store those difficult-to-replace documents.

Where to Store Documents

Emergency Kit

Filing Chiffonier

Birth/death certificates
Tax returns
Social Security cards
Credit carte du jour statements
Passports
Medical records
Emergency contact information (insurance agents, doctors, family unit)
Retirement savings statements
Marriage certificates/divorce decrees
Investment records
Wills
Bills
Copies of your commuter's license, green menu, and other identification cards
Paycheck stubs
Copies of lifesaving prescriptions (like insulin, asthma inhalers, etc.)
Bank statements
Listing of banking company account and credit card account numbers
Warranty/rebate documentation
Inventory of household goods
Legal documents

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How Long to Keep Documents

Document

Length of Time

Taxation documents
Proceed taxation returns, equally well as supporting documents like W-2 forms, receipts, and real manor closing statements for 7 years. The IRS may inspect yous inside three years if it suspects good-faith errors; 6 years if it believes you underreported your income by at least 25%; and unlimited time if you did not file a return or filed a fraudulent one.
Investment records
Go along as long as y'all own the securities, plus another seven years [Rich]. You'll need them to prove majuscule gains and losses.
Banking company statements
One calendar month. You merely demand these long enough to check the accuracy of the transactions [Williams]. Unless the statement is your only record for a tax-related transaction, there's no need to go along them longer. Plus, your bank will have them available online.
Retirement plan statements
Most, ane yr, for tax purposes [Rich]. Keep Roth IRA statements until yous retire, to prove y'all already paid tax on your contributions [Rich].
Credit bill of fare statements
Shred immediately after checking the accurateness of the transactions [Williams]. These documents are a prime number source for identity theft. Unless the statement is your but record for a tax-related transaction, at that place'south no need to go along them longer. Plus, your issuer will have them available online.
Paychecks
One year, until you receive your W-2 [Rich].
Bills
One yr, for tax purposes [Rich].
Due west-2 forms
Until y'all begin claiming Social Security. They're the all-time guess of your earnings and entitlements.

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Now that you lot know what to keep and what to toss, check out Organize Important Papers and Documents for tips on keeping your paperwork organized.

1. Beth Givens, director of the Privacy Rights Clearinghouse, a consumer group on privacy and identity theft issues. Spider web: privacyrights.org. Office phone: 619-298-3396.

two. Alicia Rockmore, co-founder of Buttoned Upwardly, Inc., a company that provides organizational tips and tools. Web: getbuttonedup.com. Office telephone: 734-477-5020.

three. Kate Williams, vice president of financial literacy for Money Management International, which oversees the Consumer Credit Counseling Service agencies. Web: moneymanagement.org. Office phone:ane-800-698-6512.

iv. Sharon Rich, a fee-only financial planner based in Belmont, Mass., who specializes in women and families. Web: womoney.com. Function phone: 617-489-3601.

five. IRS Publication 552; Recordkeeping for Individuals. Web: irs.gov.

six. Identity Theft Resource Center study; The Aftermath 2006. Web: idtheftcenter.org.

vii. American Cherry-red Cross publication, Disaster Supplies Kit. Web: redcross.org.