Payroll records are detailed documents that track all compensation-related information for a company’s employees. These records include data such as employee names, job titles, hours worked, salaries or wages, bonuses, deductions, and withholdings for taxes, Social Security, and Medicare. They may also include information about benefits like health insurance, retirement contributions, and paid time off. Maintaining accurate payroll records is essential for ensuring compliance with federal, state, and local labor laws and tax regulations.
Employers must keep these records for a specific period, often several years, for auditing purposes. Proper payroll documentation helps prevent legal issues and ensures transparency in employee payments.