3 is 4 IRS, IRC 4 is 3 FLSA, FMLA OSHA is 5

 FLSA* requires certain records to be kept by covered employers for all employees and retained for either 2 or 3 years *Fair Labor Standards Act

Information Required for FLSA  Name, Address, Phone, EEO data  Pay Rates, Hours Worked, Deductions  Paycheck Dates, Gross & Net  Job titles and classifications  Start of Workweek, Work Schedules  Timecards, piecework production, delivery tickets  Tip Amounts.  Sub-minimum wages: Student learners, interns, apprentices.

 Records must be “Safe and Accessible” and be available for inspection within 72 hours  Penalties – Up to $10,000 and 6 months imprisonment  In Lawsuit – Court will accept employee’s evidence if employer has incomplete records

 IRC requires all employers that must withhold and pay FIT, SS, and MED retain these records for 4 years  Includes W-4, W-5, W-4S, W4-P, personal employee info, W-2, EIN, and copies of all tax returns (941, 940, etc.)

 Employer remains ultimately responsible for the recordkeeping requirements, even if using a payroll service provider  In event of audit, employer must make ALL records available upon request  Penalties - Up to $25,000 ($100,000 for corporations) and 1 year imprisonment

 Civil Rights Act of 1964 (Title VII) requires records to be kept at least 1 year (EEOC)  Age Discrimination in Employment Act of 1967 (ADEA) requires records to be kept at least 3 years  Government Contractor Regulations – Federal contractors and subcontractors must retain info on applicants and employees to determine if affirmative action goals have been met

 Immigration Reform and Control Act (IRCA) requires I-9 to be retained for at least 3 years after date of hire or 1 year after date of termination, whichever is later  Family Medical Leave Act (FMLA) requires records to be retained for either 2 or 3 years – same as FLSA requirements

3 is 4 IRS, IRC 4 is 3 FLSA & FMLA… & IRCA & ADEA OSHA is 5

 State Unemployment Insurance Laws  State Wage-Hour Laws  Unclaimed Wages – “ESCHEATMENT”

 More companies are storing all employee data in one master file or database  Documents Needed from New Employees ◦ Form W-4, Withholding Allowance Certificate ◦ State W/H Allowance Certificate ◦ Local W/H Allowance Certificate ◦ Form I-9, Employment Eligibility Verification

 Many businesses retain records for much longer than required minimum, often as long as company is in business  Storage Methods ◦ Paper ◦ Micromedia Storage (microfiche, microfilm) ◦ Media Imaging (optical character recognition – OCR) ◦ Electronic Vaulting (offsite mirroring or shadowing)

 Retrieval and destruction of records ◦ Companies must have a written policy governing record retention, retrieval and destruction ◦ Written Policy should clearly state retention periods, methods of retrieval, and methods of disposal and destruction ◦ Consistently applied policy of retention and disposal can be good protection in the event of a lawsuit

 HIPAA of 1996: What is it? ◦ Designed to help employees and their families maintain health insurance coverage when the employees change or lose jobs ◦ Provisions include requirements for the electronic exchange, privacy, and security of health information ◦ Privacy Rule – April 14, regulations governing individually identifiable health information applies to health plans, health care clearinghouses, and any health care provider who transmits health information in electronic form

3 is 4 IRS, IRC 4 is 3 FLSA, FMLA OSHA is 5

 Keep notes, lists, and charts on a wall or place where you see them often.  Research free flashcards or practice questions online.  Write your own study cards.  Taper down your studying a few days before.  Do NOT cram the night before the test.  RELAX and go to bed early. GOOD LUCK!

Vickie Rayhill, CPP Thank you very much! March 19, 2016