How long do employers have to keep payroll records?

In the US, the FLSA requires payroll records be kept for at least three years, and the records wage calculations are based on (timecards, wage-rate tables) for two years. The IRS separately requires employment-tax records for four years. In Canada, the CRA requires records be kept for six years from the end of the tax year they relate to. When more than one rule applies, the longest period controls.

Why does the IRS period differ from the FLSA period?

They cover different obligations. The FLSA's three-year rule is about wage-and-hour records; the IRS's four-year rule is about employment-tax records. Because both can apply to the same payroll document, the practical answer is to keep records for at least the longer of the two — and some states require longer still.

Do retention rules vary by state?

Yes. Some states require longer retention than the federal minimums — for example, California and Arizona are commonly cited at four years and Montana at five. Always confirm the requirement for each state you operate in; this overview covers the federal baselines.

What do retention rules mean for former-employee access?

They cut in your favor. Because you're already required to retain pay and tax records for years, keeping them accessible to the former employee through a secure portal doesn't add a retention burden — the data has to exist anyway. It just turns a record you must keep into self-service the former employee can reach, within the applicable tax rules.

Workforce pay & tax self-service

Payroll record retention requirements (US and Canada)

Updated June 2026 · Reviewed by David Higginson, CHIME Innovator of the Year

Employers don't get to delete payroll records when an employee leaves — they have to keep them for years. Knowing exactly how long is the difference between a clean audit and a scramble.

Payroll record retention is the minimum period an employer must keep wage and tax records. In the US, the FLSA requires payroll records for three years (and supporting records for two), and the IRS requires employment-tax records for four years. In Canada, the CRA requires records for six years from the end of the tax year. When more than one rule applies to the same record, the longest period controls.

This is a general, educational overview — not legal or tax advice. Retention rules have nuances and state/provincial variations; confirm the specifics with counsel or your tax advisor.

The federal baselines

Authority	Record type	Minimum retention
FLSA (US DOL)	Payroll records	3 years
FLSA (US DOL)	Supporting records (timecards, wage-rate tables, schedules)	2 years
IRS (US)	Employment-tax records	4 years (after the tax is due or paid, whichever is later)
CRA (Canada)	Payroll & tax records	6 years (from the end of the tax year)

How the rules interact

Because the FLSA (3 years) and IRS (4 years) rules can both apply to the same payroll document, the safe practice is to retain for at least the longer period — and some states require longer still (California and Arizona are commonly cited at four years, Montana at five). The simplest defensible policy is to keep records for the longest period any applicable rule requires.

What this means for employee access

Retention rules quietly make the case for self-service. You're obligated to keep pay and tax records for years regardless — so keeping them reachable by the employee (including after they leave, within the IRS and CRA rules) doesn't add a retention burden. It turns records you must keep anyway into self-service, which is exactly the point of former-employee access.

Where this fits at Bluefish

The Bluefish Employee Portal keeps current and historical pay and tax documents available to employees on any device — the records you're required to retain, turned into self-service. For the fundamentals, see employee self-service portals for hospitals.

Sources: US DOL — FLSA Fact Sheet #21 (recordkeeping) · IRS — Employment tax recordkeeping · CRA — Where to keep your records and for how long.

Frequently asked questions

How long do employers have to keep payroll records?: In the US, the FLSA requires payroll records be kept for at least three years, and the records wage calculations are based on (timecards, wage-rate tables) for two years. The IRS separately requires employment-tax records for four years. In Canada, the CRA requires records be kept for six years from the end of the tax year they relate to. When more than one rule applies, the longest period controls.
Why does the IRS period differ from the FLSA period?: They cover different obligations. The FLSA's three-year rule is about wage-and-hour records; the IRS's four-year rule is about employment-tax records. Because both can apply to the same payroll document, the practical answer is to keep records for at least the longer of the two — and some states require longer still.
Do retention rules vary by state?: Yes. Some states require longer retention than the federal minimums — for example, California and Arizona are commonly cited at four years and Montana at five. Always confirm the requirement for each state you operate in; this overview covers the federal baselines.
What do retention rules mean for former-employee access?: They cut in your favor. Because you're already required to retain pay and tax records for years, keeping them accessible to the former employee through a secure portal doesn't add a retention burden — the data has to exist anyway. It just turns a record you must keep into self-service the former employee can reach, within the applicable tax rules.