Who is required to keep payroll records?

All companies are required to keep payroll records, regardless of their size or structure. This requirement is rooted in both federal and state labor laws, which mandate that employers maintain accurate payroll records as part of their obligation to comply with wage and hour regulations. Keeping detailed payroll records ensures that companies can demonstrate compliance with laws regarding minimum wage, overtime pay, and various employee benefits. These records also serve as important documentation in case of audits, disputes, or legal claims related to employment.

Companies must record information such as hours worked, wages paid, and employee information, which is critical for tax calculations and future reference. The requirement does not distinguish between large corporations, small businesses, or non-profits; all employers have a responsibility to manage and retain payroll records correctly. Thus, the necessity for all companies to maintain payroll records reflects a broader commitment to responsible business practices and legal compliance.