Payroll Records Compliance: What to Keep and What to Toss in 2025

Payroll departments generate massive amounts of data—paystubs, tax filings, timesheets, I-9s, W-2s, benefit deductions, garnishment records, and more. But with every federal, state, and local agency having its own record retention requirements, knowing which records to keep, how long to retain them, and how to store them safely is crucial to staying compliant. A wrong move—such as prematurely destroying a tax form or misfiling wage data—can result in significant penalties, lawsuits, and regulatory exposure.

This critical training is designed to help payroll professionals and HR teams build and maintain a legally compliant payroll recordkeeping system for 2025. With evolving digital standards, stricter electronic I-9 requirements, and key enforcement updates under the Lilly Ledbetter Fair Pay Act, it's never been more important to understand the legal, operational, and risk management aspects of payroll documentation.

Whether you're drowning in outdated paperwork, unsure about transitioning to electronic recordkeeping, or simply seeking a system that ensures confidence during audits, this session will provide a practical blueprint for smart and compliant payroll records management.

Learning Objectives:-

Participants will walk away with in-depth knowledge of:

• Federal and state-specific payroll record retention mandates.
• The legal distinctions between required vs. recommended records.
• Electronic retention standards vs. traditional paper requirements.
• Document scanning and storage best practices for legal compliance.
• Recordkeeping for special documents: W-2s, 1099s, tax forms, wage reports, etc.
• Handling local tax forms, government contracts, and union requirements.
• Complying with 2025 I-9 electronic storage and e-signature protocols.
• Best practices for separating payroll from HR and confidential records.
• How to securely destroy outdated records to minimize risk.

Agenda:-

1. Introduction to Payroll Recordkeeping Compliance

• Overview of federal recordkeeping laws (FLSA, IRS, DOL, ERISA)
• Why noncompliance can result in fines, lawsuits, and audit exposure
• The impact of 2025 enforcement priorities from the IRS, DOL, and DHS

2. What Records You Must Retain—and For How Long

• Payroll registers, tax deposits, W-4s, W-2s, 1099s, timesheets
• Garnishment records, benefit payment documentation, leave balances
• Union contracts and prevailing wage records
• Required retention periods under federal law (2, 3, 4, 6 years… and lifetime?)

3. State-Specific Recordkeeping Rules

• Which states have stricter or longer retention periods
• Examples: California, New York, Illinois, Texas, Florida
• Navigating multi-state payroll compliance for remote/hybrid workers

4. Paper vs. Electronic Recordkeeping

• When it's safe to digitize and destroy the paper copy
• What the IRS, DOL, and DHS say about electronic storage
• Required e-signature protocols for sensitive forms (e.g., I-9s)
• Systems and platforms that support compliant electronic archiving

5. Electronic I-9 Compliance in 2025

• Evolving rules under ICE and DHS regarding I-9s
• Remote verification updates: 2025 guidance for virtual hires
• Four key steps for a compliant electronic I-9 system
• What to do during an audit or Notice of Inspection (NOI)

6. Special and Year-End Forms Management

• How to file and archive:
  • W-2s and 1099s
  • Payroll tax deposits (Form 941, 944)
  • Year-end summaries for SSA and IRS
  • Local tax and wage reports
• Handling records for federal contractors and grant-funded employers

7. The Lilly Ledbetter Fair Pay Act & Retention Changes

• Why does this Act extend the statute of limitations for pay discrimination
• Impact on wage-related document retention policies
• Which payroll records must be stored for extended periods

8. Payroll vs. HR Records: What to Keep Separate

• Why payroll and personnel files shouldn’t be stored together
• Legal risks of co-mingling sensitive employee data
• Tips for organizing secure, segmented digital record systems

9. Safe Disposal and Records Destruction

• Legal timelines for discarding payroll records
• Secure methods for shredding or digital purging
• Avoiding litigation holds: what to do when there's pending litigation or investigation

2025 Recordkeeping Updates You Need to Know:

Here are a few of the most notable recordkeeping changes and focal points for 2025:

• I-9 Virtual Inspection Flexibility: Under a 2023 DHS rule, employers who use E-Verify may now inspect I-9s remotely under certain conditions—but proper recordkeeping and document imaging are required. Failing to preserve required audit trails can result in I-9 violations.
• Electronic Signature and Archival Standards: The IRS and DOL have expanded their digital acceptance policies, but only for systems that include access controls, timestamping, secure backups, and the ability to reproduce data in a readable format.
• Increased State Activity: Several states have introduced bills extending the retention period for payroll and wage records, especially in connection to pay transparency and equity laws. California and New York are particularly aggressive in enforcing pay data record retention for up to 6 years.
• AI and Payroll Software Audits: With growing use of AI-driven payroll platforms, 2025 auditors are requesting digital audit logs and record interaction histories. Employers must ensure that retention is not just automated—but verifiable and user-tracked.

Why You Should Attend?

This webinar is your essential guide to understanding and implementing an efficient and legally defensible payroll records system for 2025. With shifting rules and digital expectations, it’s easy to overlook critical details that could lead to costly consequences. Whether you're a seasoned payroll professional, a new HR generalist, or a compliance auditor, this training ensures you're equipped to:

• Avoid fines and legal challenges by following precise recordkeeping guidelines.
• Establish a streamlined document management system that balances accessibility and security.
• Know what to retain, scan, file, or destroy—and when to do it.
• Stay compliant with federal, state, and industry-specific regulations.
• Respond confidently to audits, litigation, and employee claims.

You’ll gain the tools, timelines, and templates needed to elevate your payroll records system and maintain audit-ready compliance throughout 2025 and beyond.

Who Should Attend:

This training is ideal for:

• Payroll Managers and Specialists
• HR Professionals
• Finance and Accounting Staff
• Business Owners and Executives
• Compliance Officers
• Legal and Risk Management Personnel
• Office Administrators handling records.