How long should employee records be kept?

Employee Record Retention Requirements in Wisconsin

Maintaining accurate and timely employee records is essential for compliance and operational efficiency in Wisconsin. Proper recordkeeping supports payroll accuracy, tax reporting, and labor law compliance.

Recommended Retention Periods for Employee Records

• Payroll Records: Keep payroll records, including timesheets, wage statements, and tax withholdings, for at least 3 years. This aligns with federal and Wisconsin Department of Workforce Development guidelines.
• Personnel Files: Retain employee personnel files, including job applications, performance reviews, and disciplinary actions, for 3 to 7 years after termination. This helps address potential employment claims and audits.
• Tax Documents: Maintain copies of W-2s, 1099s, and related tax filings for a minimum of 4 years to meet IRS and state tax audit requirements.
• Employee Benefits Records: Keep records related to health insurance, retirement plans, and leave of absence for at least 6 years following the end of employment.

Operational Considerations

• Compliance: Regularly review record retention policies to ensure alignment with updates in Wisconsin labor laws and federal regulations.
• Secure Storage: Store records securely to protect employee privacy and comply with data protection standards. Consider digital recordkeeping with proper backups and access controls.
• Automation: Use HR and payroll software to automate record retention schedules and alerts for document disposal.
• Disposal: When disposing of records, use secure methods such as shredding paper files and permanently deleting electronic files.

As of 2026, following these retention periods will help Wisconsin employers maintain compliance and streamline their hiring and employment operations.