How long should employee records be kept?

Employee Record Retention Requirements in Minnesota

Maintaining employee records properly is essential for compliance, payroll accuracy, and smooth business operations in Minnesota. As of 2026, businesses should follow these guidelines for how long to keep employee records.

Minimum Retention Periods for Employee Records

• Payroll Records: Keep payroll records, including wage details, hours worked, and deductions, for at least 3 years. This supports compliance with wage and hour laws and IRS regulations.
• Tax Records: Retain documents related to federal and state tax withholding, such as W-4 forms and tax filings, for a minimum of 4 years to satisfy IRS and Minnesota Department of Revenue requirements.
• Hiring and Employment Records: Maintain applications, offer letters, background checks, and I-9 forms for at least 3 years after an employee leaves. I-9 forms specifically must be kept for 3 years after hire or 1 year after termination, whichever is later.
• Employee Benefits and Leave Records: Keep records related to benefits enrollment and leave requests for at least 3 years to support compliance with applicable benefit laws and audits.
• Disciplinary and Performance Records: Retain performance reviews, disciplinary actions, and related documentation for at least 3 years to support HR decisions and potential disputes.

Operational Tips for Recordkeeping

• Use secure digital storage: Automate record retention with HR or payroll software that complies with Minnesota data privacy standards.
• Establish a retention policy: Define clear timelines for record destruction and retention to ensure consistent compliance and reduce storage costs.
• Coordinate with payroll and tax reporting: Align recordkeeping with payroll cycles and tax reporting deadlines to streamline audits and reporting requirements.
• Review records periodically: Schedule regular audits of employee files to ensure completeness and compliance with retention policies.

Summary

For Minnesota businesses, keeping employee records for at least 3 to 4 years depending on the record type is operationally necessary. Consistent retention supports compliance with payroll, tax, and employment regulations while facilitating efficient HR management and reporting.