Records Retention Policy
Table of COntents
1. Introduction……………………………………………………………………………………….. 2
2. Policy………………………………………………………………………………………………… 3
3. Accounting Systems……………………………………………………………………………. 3
4. Corporate Records……………………………………………………………………………… 4
5. Fixed Assets………………………………………………………………………………………. 4
6. Human Resources……………………………………………………………………………… 5
7. Insurance………………………………………………………………………………………….. 5
8. Legal………………………………………………………………………………………………… 5
9. Payroll………………………………………………………………………………………………. 6
10. Taxation…………………………………………………………………………………………… 6
11. Miscellaneous & Programs…………………………………………………………………. 6
1. Introduction
The purpose of the Records Retention Policy is to provide the necessary information to employees in order that Lazarus House Inc. retains the proper information for the proper periods of time. This policy is distributed to employees who in turn shall follow the parameters set forth in this policy. This policy is assembled from review and use of IRS Regulations – 26 CFR 1.6001-1, and The Guide of Record Retention requirements in the Code of Federal Regulations. Additionally in all circumstances, be aware that the Materiality Rule under Treasury Regulation 1.6001-1 governs that all books and records must be maintained as long as they remain material in the computation of any tax.
2. Policy
The following pages outline the policies that Lazarus House Inc. shall follow. Each employee of Lazarus House Inc. that controls and files documents, shall review this policy and follow the periods of retention set forth in this document.
Note that retention of documents and information includes the various categories of documents and information:
• All electronic files and memos
• Typed and had written documents
• E-mails
• Tax software files
• General ledger files
• “.pdf” files
The key to reading the retention requirements is as follows. Look up the category of document and find it in the table. Then read the code after the document type. The codes are as follows and these codes dictate the number of years the records shall be retained:
P = Permanent
P/Numeric = Permanent and disregard the numeric after the P
Numeric = Number of years
*7 = Years following disposition, Termination, payoff, leaving of guest, etc.
** = Maintain permanent records for all information required for the first taxable year, and each succeeding year in which there is an NOL or NOL carryover.
3. Accounting Systems
Accounts payable ledger 7
Accounts receivable aging reports 7
Accounts receivable ledger 7
Accounts receivable invoices 7
Accounts written off 7
Authorizations accounting 5
Balance sheets P
Bank reconciliations 7
Bank deposit slips 3
Budgets 3
Cancelled checks 10
Cash books P
Cash disbursement and receipt records P
Cash sales slips 7
Charge slips 7
Chart of accounts P
Check register P
Expense reports 7
Financial statements P
General ledger P
Investment – sales/purchases P
Journal entries P
Petty cash records 7
Profit/Loss statements P
Purchase orders 7
Subsidiary ledger P
Trial balance P
Vendor invoices 7
Voucher check copies 7
4. Corporate Records
Amendments P
Annual reports P
Articles of incorporation P
Audit reports – public P
Audit – internal 6
Board of directors – Committee P
Board of directors – Minute Book P
Bylaws P
Charter P
Contributions P
Election Records P
Financial statements P
Organization charts P
5. Fixed Assets
Depreciation schedule P
Property appraisals P
Property register P
6. Human Resources
Accident reports 7
Disability benefits after settlement 7
Employee medical history 7
Employee application – not hired 3
Garnishments 5
Medical benefits 7
Performance record – after termination 7
Personnel files – current employees P
Personnel files – after termination 7
Safety reports 5
Vacation files 4
Worker’s Compensation benefits 10
Sick pay 4
Family and medical leave 3
7. Insurance
Automobile insurance claims 10
Disability insurance claims –after termination 7
Expired insurance policies 10
Fire inspection reports 6
Insurance appraisals 6
Safety records 6
8. Legal
Bill of sale P
Business permits P
Claims and litigation P
Contracts P
Copyrights P
Correspondence legal P
Deeds/titles P
Leases/cancelled 10
Mortgages P
Notes receivable – cancelled 10
Trademarks – registered P
9. Payroll
Contractors/agencies 3 years from date of completion
Employee withholding exemption certificates 10
Payroll register 4
Payroll records after termination 10
Salary history 8
Time reports 7
W-2 forms P
Vacation/sick pay 4
10. Taxation
Cancelled checks tax payment P
Correspondence tax P
Depreciation schedules P
Income tax returns P
FUTA/FICA/Income tax withholding 4
Payroll tax returns P
11. Miscellaneous & Programs
Title papers P
Vehicle operating and maintenance 2
Telecommunication copies 1
Volunteer records P
Volunteer database P
Donor records P
Donor database P
Guest records *7