How long should payroll records be kept?

Payroll Record Retention Requirements in Washington State

In Washington, maintaining accurate payroll records is essential for compliance with state and federal regulations. Proper recordkeeping supports payroll tax reporting, audits, and employee inquiries.

Recommended Payroll Record Retention Period

As of 2026, employers in Washington should keep payroll records for at least three years after the date the tax becomes due or is paid, whichever is later. This aligns with requirements from the Washington State Department of Revenue and the Washington Employment Security Department.

Types of Payroll Records to Retain

• Employee information (name, address, Social Security number)
• Hours worked and wages paid
• Records of deductions and benefits
• Tax withholding and payment records
• Timesheets and attendance records
• Payroll tax returns and reports

Operational Tips for Payroll Recordkeeping

• Use automated payroll software to securely store and organize records.
• Back up digital records regularly to prevent data loss.
• Ensure records are accessible for audits or employee requests.
• Coordinate retention schedules with your bookkeeping and tax reporting processes.
• Review retention policies periodically to stay compliant with any regulatory updates.