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Roger, Attorney
Category: Business Law
Satisfied Customers: 31729
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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How long does the payroll company need to keep records after

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How long does the payroll company need to keep records after client terminated services. State: KY

Hi - my name is XXXXX XXXXX I'm a Business litigation attorney here to assist you.


Payroll registers are to be kept at least 3 years (, but most retain records for 5 years as a rule of thumb.,,id=98513,00.html

Customer: replied 5 years ago.
What you provided me applies to businesses not third party providers. We are payroll company and client have been provided with all records at time of services termination. What is our time table for record retention?
It doesn't matter if you're the business or a third party provider. IF you're in charge of payroll for a company (whether internal or external), the three year time line pertains to you.
Customer: replied 5 years ago.
OK, another twist, we dissolved in 2009 and client is bringing IRS letter for 2008 issue. All records have been discartet a year after dissolution, can this client still sue if we have no records?

Your three years would be up this year for a 2008 issue, so whether there's a problem depends on when the 2008 issue was. If it was after the three years expired, your company doesn't have any liability. If the three years were not up and the records were destroyed, there may be some liability.


Also, if you provided all of the payroll records to the client, you could claim that you didn't retain them because you turned them over to them. That is about the best defense/excuse for not retaining the records.


The company could still sue, but the lack of records would make things difficult.

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