Time and attendance

How Long to Keep Time Cards and Payroll Records (Record Retention Chart)

By Nicole Hullihen, former SaaS Chief Operating Officer and Microsoft MVP · Updated November 8, 2026

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How long to keep time cards and payroll records is one of those questions nobody thinks about until a former employee files a wage claim, the IRS sends a letter or the Department of Labor asks for two years of time records. Then it matters a great deal whether those records exist, whether they're complete and whether you can find them. Throwing records away too early can leave you unable to prove what you paid. Keeping everything forever creates clutter and privacy risk.

This guide explains how long to keep time cards and payroll records under the main federal rules, what records you must keep for each employee, how to store them safely and when to destroy them. You'll get a record retention chart and a free retention schedule template you can copy. Federal rules are the floor; your state may require longer, so check with your state labor department or an advisor before you shred anything.

Quick Record Retention Chart

Here are the main federal retention periods that apply to time and payroll records. When more than one rule covers the same record, keep it for the longest period that applies.

What the FLSA Requires for Time and Payroll Records

The Fair Labor Standards Act (FLSA) is the federal law behind minimum wage and overtime. The Department of Labor's recordkeeping fact sheet splits records into two groups. Payroll records must be kept for at least 3 years. Records on which wage computations are based, such as time cards, piecework tickets, wage rate tables, work and time schedules and records of additions to or deductions from wages, must be kept for at least 2 years.

Time cards are on the 2-year list, but the payroll records built from them are on the 3-year list. In practice, most employers keep both for at least 3 years so the hours always match the pay. The FLSA doesn't require a particular form for time records. You can use a time clock, a timekeeper or any other method, as long as the records are complete and accurate. Employers with fixed schedules may record the schedule and note only the exceptions when actual hours differ.

Information you must record for non-exempt employees

• Full name and Social Security number
• Address, including ZIP code
• Birth date, if younger than 19
• Sex and occupation
• Time and day the workweek begins
• Hours worked each day and total hours each workweek
• Basis on which wages are paid (hourly, weekly, piece rate)
• Regular hourly pay rate
• Total daily or weekly straight-time earnings
• Total overtime earnings for the workweek
• All additions to or deductions from wages
• Total wages paid each pay period
• Date of payment and the pay period covered

Records may be kept at the place of employment or in a central records office, and Wage and Hour Division investigators may ask to inspect them. That makes it important that records can be found and produced quickly, not just that they exist somewhere.

IRS Employment Tax Records

The IRS says to keep all records of employment taxes for at least 4 years after filing the fourth-quarter return for the year. For records covering 2026, that means keeping them until at least early 2031. The IRS lists records such as:

• Your employer identification number (EIN)
• Amounts and dates of all wage, annuity and pension payments
• Tips employees reported to you and any allocated tips
• Names, addresses, Social Security numbers and occupations of employees
• Dates each employee worked for you
• Copies of Form W-4 and other withholding certificates
• Dates and amounts of tax deposits
• Copies of returns filed and confirmation numbers
• Records of fringe benefits and expense reimbursements

The IRS also notes longer periods for records tied to certain paid sick and family leave credits and the Employee Retention Credit. If you claimed those, check the IRS guidance for the exact period. Because the IRS period is the longest of the common federal rules for payroll, many businesses use 4 years as their default for all time and payroll records.

Other Federal Records That Touch Time and Payroll

FMLA records

Covered employers must keep Family and Medical Leave Act records for no less than 3 years. That includes dates and hours of FMLA leave taken, copies of notices, and records of any disputes. If you track FMLA leave in your time clock or PTO system, those records need to stay for at least 3 years. See the leave of absence policy template for tracking leave.

Form I-9

USCIS requires employers to keep each employee's Form I-9 for three years after the date of hire or one year after the date employment ends, whichever is later. Keep I-9s separate from personnel files so they can be produced on their own during an inspection. See Form I-9: how to complete it correctly.

EEOC personnel records

EEOC regulations require employers to keep personnel or employment records for one year. For an employee who is involuntarily terminated, personnel records must be kept for one year from the date of termination. If a charge of discrimination is filed, keep all relevant records until the matter is fully resolved.

State Rules Can Be Longer

Many states have their own wage and hour recordkeeping rules, and some require employers to keep time and payroll records longer than the federal minimum. State rules may also cover additional items, such as meal and rest break records, sick leave accruals or pay stubs. Check your state labor department's rules for every state where you have employees. If you're not sure, keeping time and payroll records for at least 4 years covers the federal rules and is a common practical choice, but confirm your state's requirement.

Why Keeping Time Records Protects You

Recordkeeping isn't just compliance. Accurate records are your best defense in a wage dispute. If an employee claims unpaid overtime and the employer has no reliable time records, the employer is at a disadvantage when the hours worked are being reconstructed. Complete punch records with an edit history show exactly when people worked and who approved any changes.

• Wage and overtime claims. Show hours, rates and pay for every workweek.
• Department of Labor investigations. Produce records quickly and completely.
• Unemployment claims. Show attendance, schedules and separation dates.
• Tax audits. Match wages, tips and deposits to returns.
• Internal questions. Settle "I worked that Saturday" disputes in seconds.

Records are only as good as their accuracy. If time cards are frequently edited without notes, or rounded inconsistently, they can raise questions instead of answering them. See how to audit timesheets and the timesheet edit form.

What to Keep in Each Employee's Records

Keep medical information in a separate, confidential file, not in the general personnel file, and limit who can see it.

Paper vs. Digital Records

Federal rules don't require paper. Digital records are allowed as long as they're complete, accurate and can be produced when requested. Digital records are easier to search, back up and protect. Paper records can be lost to water damage, fire or a misplaced box, and they take up space. Whatever you use, make sure records can be produced quickly, are protected from unauthorized changes and are backed up.

Spreadsheets are a reasonable way to keep records for small teams, especially when a single person maintains them and access is restricted. The key is consistency: the same format, the same location and a clear record of who changed what and why.

How to Store Payroll Records Securely

• Limit access. Only people who need payroll and personnel data should see it.
• Protect Social Security numbers. Don't email them or store them in shared folders.
• Back up digital records. Use a secure cloud service or a regular backup routine.
• Lock paper files. A locked cabinet in a locked room.
• Keep an index. Know which year and which employee is in which file or folder.
• Keep edit history. Time record changes should show who made them and why.

When and How to Destroy Old Records

Once records pass every retention period that applies, including state rules and any open claims, you can destroy them. Do it on a schedule, not randomly, and do it securely. Shred paper and permanently delete digital files containing Social Security numbers and pay information. Never destroy records that relate to a pending audit, investigation, lawsuit or claim, even if the retention period has passed. Keep a simple destruction log showing what was destroyed, when and by whom.

Free Record Retention Schedule Template

Copy this template into a spreadsheet and adjust the retention periods for your state. Review it once a year, ideally in January, and destroy only the records that have passed every applicable period.

Common Record Retention Mistakes

• Keeping only payroll, not time cards. You need the hours behind the pay.
• Losing records when you switch systems. Export and archive old data before you cancel a time clock or payroll provider. See how to switch time clock software.
• Editing time without notes. Unexplained edits weaken records in a dispute.
• Mixing I-9s and medical records into personnel files. Keep them separate.
• Destroying records during a claim. Legal holds override retention schedules.
• Only following federal rules. Check state requirements too.
• No owner. If no one is responsible, records pile up or disappear.

Example: A Wage Claim Two Years Later

A small landscaping company received a wage claim from a former crew member who said he worked unpaid overtime every week the previous summer. The owner had switched from paper time cards to a digital time clock the year before. Within an hour, the company produced every punch for that employee, including GPS locations, break times, two edits with manager notes and the payroll export showing overtime paid in each week he worked over 40 hours. The claim was resolved quickly. With the old paper system, the owner said, he would have been digging through boxes in the garage, and two months of cards had been lost in a move.

Final Thoughts

Under federal rules, keep time cards and other wage computation records for at least 2 years, payroll records for at least 3 years and employment tax records for at least 4 years after filing the fourth-quarter return for the year. Add FMLA, I-9 and EEOC rules where they apply, check your state's requirements and keep records accurate, secure and easy to find. A simple retention schedule reviewed once a year keeps you covered without keeping everything forever.

Keep Time and Payroll Records Organized With Updoot

Updoot's employee time clock keeps every punch, break, punch note and GPS or photo verification in one place, and admin timecard approval includes an audit log showing every edit and who made it. Optional employee approval adds a second confirmation that hours are correct. Updoot doesn't process payroll, but its payroll-ready export to Gusto, ADP or Paychex includes hours, pay rates, multipliers and gross pay, so your payroll provider's records match your time records.

The HR vault stores employee documents, reviews and records with permissions, and PTO tracking keeps leave history by type, including a custom type for FMLA. See the Updoot pricing page for current plans, and start a free trial to test it with your team.

Sources

• U.S. DOL Fact Sheet #21: Recordkeeping Requirements Under the FLSA
• IRS: Employment Tax Recordkeeping
• 29 CFR 825.500: FMLA Recordkeeping Requirements
• USCIS: Retaining Form I-9
• EEOC: Recordkeeping Requirements

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