How long should payroll records be kept?

Payroll Recordkeeping Requirements in Maryland

Maintaining accurate payroll records is essential for compliance with Maryland state regulations and federal requirements. Proper recordkeeping supports tax filings, audits, and employee inquiries.

How Long to Keep Payroll Records

As of 2026, Maryland businesses should retain payroll records for a minimum of 3 years from the date the tax is due or paid, whichever is later. This aligns with federal guidelines from the Internal Revenue Service (IRS).

Payroll records include:

• Employee names and addresses
• Social Security numbers
• Hours worked each day and week
• Wages paid
• Payroll tax filings and payment confirmations
• Timecards and attendance logs

Operational Tips for Payroll Recordkeeping

• Use payroll software: Automate record retention and backup to reduce manual errors.
• Secure records: Protect sensitive employee data to comply with privacy standards.
• Prepare for audits: Ensure records are organized and accessible to meet Maryland Department of Labor or IRS audit requests.
• Coordinate with bookkeeping: Link payroll records with accounting systems for accurate financial reporting and tax compliance.

Additional Considerations

Maryland employers must also comply with federal payroll tax requirements, including Social Security and Medicare reporting. Keeping records for at least 3 years supports these obligations and helps manage payroll tax deposits and filings.