If you’re an employer, keeping track of your employee pay stubs is very important. These pay stubs are not just helpful for your business, they’re also required by law. Knowing how long to keep them can save you trouble during tax time, audits, or legal issues.
In this guide, we’ll explain how long you need to store pay stubs, what the law says, and how you can use tools like a free paystub generator to make your job easier. We’ll cover both U.S. federal laws and state-specific rules so you stay on the safe side.
Let’s break it down in simple terms.
Federal Laws for Pay Stub Storage
Fair Labor Standards Act (FLSA)
The FLSA says employers must keep pay records for at least three years. This includes:
- Full name and job title of the employee
- Social security number
- Address
- Hours worked per day and per week
- Pay rate and total earnings
This law is meant to protect both you and your employees.
IRS (Internal Revenue Service)
The IRS has its own rule. You must keep tax records (which includes pay stubs and payroll taxes) for four years after you pay the taxes or after they’re due—whichever is later. This helps in case of tax audits.
Equal Employment Opportunity Commission (EEOC)
The EEOC requires employers to keep employee records for one year. If you fire someone, you must keep their pay stub and employment records for one year after they leave.
State Laws for Pay Stub Storage
Different states have different rules. Here are some examples:
- California: Keep payroll records for at least three years.
- Illinois: Starting in 2025, you must keep pay stubs for three years.
- New York: Employers must keep payroll records for six years.
It’s important to check the law in your state. Sometimes, states ask you to keep records longer than the federal rules.
Best Ways to Store Pay Stubs
Digital or Paper Storage?
You can keep pay stubs as printed paper or store them on your computer or cloud. Digital storage is often better because:
- It saves space
- It’s easier to find documents
- It’s more secure when password-protected
But be sure to back up your files in case something happens to your computer.
When to Throw Away Old Pay Stubs
When the time comes to throw out old pay stubs, don’t just toss them in the trash. Pay stubs have private info. If you’re throwing out paper stubs, shred them. If they’re digital, delete them fully from your device or cloud.
Use Free Tools to Help
To save time and make sure everything is correct, use a pay stubs maker free. These tools let you create professional pay stubs and often store them securely for you.
Why This Matters
Keeping employee pay stubs for the right amount of time helps you:
- Stay compliant with the law
- Avoid penalties
- Prepare for audits
- Answer employee questions
- Stay organized
Whether you’re running a small business or a large company, it’s good practice to have a system in place for storing pay stubs.
