How long should payroll records be kept?

Payroll Record Retention Requirements in Connecticut

In Connecticut, maintaining proper payroll records is essential for compliance with state and federal regulations. As of 2026, businesses should retain payroll records for a minimum of four years.

What Payroll Records to Keep

• Employee personal information (name, address, Social Security number)
• Hours worked and wage rates
• Payroll tax withholding and deposits
• Pay stubs and wage statements
• Records of benefits and deductions
• Time sheets and attendance records

Operational Considerations

Keeping these records for at least four years supports compliance with Connecticut Department of Labor audits and IRS requirements. Proper recordkeeping also facilitates accurate payroll tax reporting and timely resolution of any discrepancies.

Implementing automated payroll systems can help streamline record retention and retrieval. Additionally, ensure secure storage—whether physical or digital—to protect sensitive employee information.

Related Compliance Tips

• Review payroll records periodically to ensure accuracy
• Stay updated on any changes to state payroll tax rates and reporting requirements
• Coordinate with bookkeeping and accounting teams to align payroll records with financial statements
• Maintain documentation of payroll tax filings and payments