Which of the following is true about document retention requirements per the IRS statute of limitations?
A)Federal legislation requires documents to be retained for two years after the employee's termination.
B)Payroll records must be maintained for three years after termination.
C)Union employees' records must be retained for ﬁve years after termination.
D)State legislation requires records to be retained for a minimum of eight years after termination.

Question

Quizplus · Accepted Answer

The IRS requires employers to keep payroll records for at least three years after an employee's termination, as part of their document retention requirements. This is to ensure that there is sufficient documentation to support tax filings and other compliance requirements.

Which of the Following Is True About Document Retention Requirements