How long should payroll records be kept?

Payroll Record Retention Requirements in North Dakota

Maintaining accurate payroll records is essential for compliance with federal and state regulations. In North Dakota, businesses must keep payroll records for a specific duration to meet operational and reporting requirements.

Recommended Retention Period

• Federal Guidelines: The U.S. Department of Labor recommends keeping payroll records for at least 3 years.
• North Dakota State Requirements: As of 2026, North Dakota generally requires employers to retain payroll and wage records for a minimum of 3 years.

Types of Records to Retain

Ensure you keep the following payroll-related documents:

• Employee wage and salary information
• Timecards and attendance records
• Payroll tax filings and payment confirmations
• Records of wage deductions and benefits
• Employee classification documentation (e.g., exempt vs. non-exempt)

Operational Best Practices

• Automate Recordkeeping: Use payroll software to securely store and organize records for easy retrieval.
• Regular Audits: Periodically review payroll records to ensure accuracy and compliance with tax and labor regulations.
• Backup Data: Maintain digital backups to prevent loss due to system failures or disasters.
• Stay Updated: Monitor changes in federal and state payroll tax laws that could affect record retention policies.

Additional Considerations

Employers should also retain records related to payroll taxes for unemployment insurance and workers’ compensation claims, which may have longer retention periods. Consult with your payroll service provider or accountant to align records management with all compliance requirements.