Paying employees means more than just issuing checks. Your company also needs to keep accurate records for current and past employees for a certain period of time. There are record requirements from both the IRS and the U.S. Department of Labor, which enforces employment rules for several other federal agencies.
These records include the following information: name, address, occupation, and Social Security number, as well as details of compensation such as the dates paid, tips, non-cash payments, compensation subject to withholding and payroll taxes, pay period, and fringe benefits provided to employees. In addition, you must keep copies of all pertinent federal forms filed.