Stay Compliant. Know When To Shred.
Stay Compliant. Know When To Shred.
While document destruction is the safest way to protect yourself from identity theft, there are some guidelines to follow for how long you should hang onto your old file boxes.
First and foremost, if you’re running a business, it’s imperative to know what to shred before you actually shred it. Some examples of business documents include
• Tax returns
• Photo IDs
• Voided checks
• Employee pay stubs
• Credit card information
• Copies of sales receipts
• Documents containing sensitive information such as name, address, phone number or email
• Employment records
• Audits/Surveys
• Market research
• Bank statements
• Contracts
• New product info
• Brochures
How long should you hang onto this information? It actually depends on the type of document that needs to be destroyed. For example, tax records should be kept for at least 7 years, assuming all documents have been filed correctly and completed every year. If you run a business, the IRS suggests that all employment tax records be retained for at least 4 years after the date which the taxes were due or were paid, but only for whichever is later.
As we discussed in our tax post, ledgers are a little bit different. Many tax officials who will lean towards keeping these permanently, but for supporting documentation like accounts payable and receivables, 7 years is the recommended time frame to hang onto these.
Employee payroll records are governed by the Age Discrimination in Employment Act (ADEA), therefore employers are required to keep these for 3 years from the termination date. The Fair Labor Standards Act (FLSA) guideline says that general employee records must also be kept for 3 years.
There are some caveats to this; for example, if an employee takes a leave per the Family Medical Leave Act (FMLA), the company must retain these employee records for at least 3 years, however if an employee was injured or became ill while on the job, OSHA requires that that employers retain these records for 5 years.
There are several other laws that dictate when businesses can shred their old documents, including the Gramm Leach Bliley Act (GLBA) and The Fair and Accurate Credit Transactions Act (FACTA).
Legal Shred protects our customers by providing secure shredding and by keeping our customers compliant with the HIPPA, FACTA, GLBA as well as other federal and state destruction laws. More than 40 Federal laws mandate that all business, healthcare, and financial institutions protect the confidential information of their clientele.
We are also a member of NAID (National Association of Information Destruction) and posses the expertise to help you comply with the law and keep your documents protected at all times.