Document Retention
How Important is a Document Retention Policy Anyway?
Why do I need to keep documents?
A good document retention policy standardizes company policy on all paper and electronic records handling for each department of the company. These standards are necessary to comply with federal laws concerning tax audits, litigation, good customer service, and company history. For this reason alone, a document retention policy is essential.
The IRS demands that you keep either paper or electronic records for a minimum of seven years; longer than that if there is an audit and/or litigation. The Sarbanes-Oxley Act of 2002 requires you to keep everything if there is ever a criminal investigation (Demand Media).
Three legislative acts deal directly with employees: The Civil Rights Act of 1964, The Americans with Disabilities Act, and the Immigration Act of 1986. These acts put retention requirements on employment applications, I-9’s, employee records, payroll, and any investigations that may occur. Even OSHA requires documents to be held after an investigation.
In addition to all the federal and state retention compliance laws, good written policies are necessary for other reasons. The mountain of paperwork and electronic records generated every day cannot all be kept indefinitely. Decisions need to be made about what papers…
