Keeping Track of Your Employees

A recent workshop that some of our team attended reminded us of the importance of maintaining the appropriate information in your employee files. Did you know that you could be assessed a $250 penalty for each employee file that does not contain the correct information?

The employee files should contain, at a minimum, federal forms W-4 (wage withholding information) and I-9 (proof of employment eligibility). Also, form I-9 requires you to review copies of the employee's documents verifying eligibility. Most businesses should protect themselves by keeping copies of the documents reviewed. (You can find copies of forms W-4 and I-9 in our forms section.)

If you use a payroll service (even from our office), keep in mind that the responsibility for maintaining these files still rests with the employer. Payroll services are not required to keep this type of information on file.