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How Long do Employers Need to Keep Payroll Records? | Maryland Benefit Advisors

Under U.S. federal law, employers must keep the payroll records of their employees or former employees for a certain length of time. The amount of time, however, varies according to which statute you refer to, which can make knowing how long to keep employee records confusing. By keeping in mind the required time limits under each statute as well as what payroll-related records the statute wants you to retain and why, you can more easily develop a system that keeps payroll records as long as the law requires.


Payroll records are, generally, any records that relate to the hours an employee works and the wages paid to him or her, according to the U.S. Department of Labor. Under the Fair Labor Standards Act, payroll records include information on the hour and day each work week begins; the number of hours worked in each work day and each work week; the total amount the employee earned working non-overtime hours; the regular hourly pay for any week in which the employee worked overtime; total overtime pay for each work week; the amounts of any additions or deductions to the employee’s pay each week; the total amount paid for each pay period; and the dates covered by each pay period, according to the U.S. Department of Labor. This information should be marked with the employee’s personal information, including name, address, occupation and sex. If the employee is less than 19 years old, also include his date of birth.

Applicable Laws

As of 2010, only two federal statutes require employers to retain payroll records for any length of time, according to the U.S. Department of Labor and the U.S. Equal Employment Opportunity Commission, or EEOC. These two statutes are the Fair Labor Standards Act and the Age Discrimination in Employment Act. For the FLSA and the ADEA, most payroll records must be kept for three years, according to the U.S. Department of Labor and the EEOC. Although the FLSA allows employers to discard some supplementary payroll records, including wage tables, after two years, the ADEA requires that employers keep these records for three years.


The ADEA does not require employers to keep payroll records in any particular format, as long as the records are available when the EEOC requests them, according to the EEOC. The FLSA does not require that time clocks be used to keep track of employee hours, according to the U.S. Department of Labor. Nor does the FLSA require that records be kept in a particular format. However, according to the U.S. Department of Labor, microfilm or punched tape should not be used unless the employer also has the equipment to make these formats easily readable.


The purpose of maintaining employee payroll records under the Fair Labor Standards Act is to protect an employee’s rights to fair pay, according to the U.S. Department of Labor, including the right of covered, nonexempt workers to the minimum wage and to overtime pay. The records may also be used to ensure an employer is not employing children too young to work legally and is not employing children who may work legally for an illegal number of hours. Maintaining records under the Age Discrimination in Employment Act is intended to ensure an employee who discovers she may have been discriminated against due to his age is able to find the information necessary to prove or disprove her claim, according to the EEOC.


Under the FLSA and the ADEA, payroll records are generally kept for three years following the date of an employee’s termination, according to the EEOC. The ADEA, FLSA, and other statutes may require an employer to keep different portions of an employee’s file for different lengths of time. For instance, while the ADEA requires payroll records to be kept for three years, it requires basic information about the employee to be kept only one year, according to the EEOC. To ensure your business meets all its recordkeeping retention requirements, consult a qualified employment law attorney.

Originally published by

The DOL’s Final Overtime Rule Saga Continues | Maryland Benefit Consultants

The change in the regulations that would increase the salary threshold for overtime exemption that was all over the news for the last several months may now be decided by the end of June.

The Fifth Circuit Court of Appeals has granted the U.S. Department of Labor (DOL) another 60-day extension of time to file its final reply brief in the in the pending appeal of a nationwide injunction issued by a federal district court in Texas blocking implementation of the DOL’s final overtime rule. As we reported at the time, the final rule, which raised the salary threshold for the white collar overtime exemptions, was scheduled to go into effect on December 1, 2016. The final brief is now required to be filed by June 30, 2017. In its unopposed motion, the DOL stated that the extension was necessary “to allow incoming leadership personnel adequate time to consider the issues” and noted that the nominee for Secretary of Labor has not been confirmed.

As a result of the extension, it is not likely that employers will see any resolution of this issue until midsummer at the earliest. This also assumes that President Trump’s nominee for Secretary of Labor, Alexander Acosta, is confirmed within the next few weeks.

By Rick Montgomery, JD
Originally published by

Are You Prepared for the ACA Apocalypse?

0727EBGcompassLabor allocations and general ledger costing? We’ve never met a CFO who didn’t speak about the
hassles they’ve had trying to integrate their time and attendance, payroll and benefits management
systems. And now all of the sudden the government is requiring that all of these systems talk to
one another to produce this report called the 1095-C? Jeez – can your life as a CFO get any more difficult?

Do you feel like you’re being dragged back into the Walking Dead world of data consolidation that you left in that first job after college? Well, you’ve worked way too hard in your career to end up in that job again and that’s not where your business needs you. You need all of this data management automated so that you can be where you need to be, helping guide your business financially. We at Employee Benefits Group understand that, that’s why we’re offering a fully-integrated workforce management system through Compass HRM.

Your Ultimate Survival Kit
We’ve exhausted our resources, our energy, and our investments to provide you with that single database, single application you’ve been looking for – a fully unified solution that allows for the administrative management of your employee life cycle in one place with analytical reporting from a single system of record. It is about time technology provided you with something besides a cool search engine like Google or streaming videos on Netflix. And no, this is not a bunch of hoopla. This is Broker-Tech!

Our system is based on your actual, tangible financial costing requirements:

  • Position Costing and Labor Allocations at the FTE level or the Corporate Level (Yes…it
  • General Ledger Validation tables inside the same app you post net pays from, eliminating
    the need for a separate login to a GL interface (Never seen that before? – well, you should
    have it!)
  • Exports that can be created for your ERP so you don’t have to have to have an employee
    key in anything
  • Location and Department tables that drive your Enterprise Time and Attendance locations
    and costing (through punches and all) based ONLY on your HCM inputs
  • Single entry, single database architecture ensures mid-period pay rate changes are
    calculated appropriately
  • Single integration allows for overrides on labor costing at the time, payroll, and ledger level
    with multi-level validation reports so you should never have to make a ‘manual journal
    entry’ (Such a dirty phrase, right?!)
  • Benefits costing that’s managed annually with the ability to drill down at the deduction level
    by pay period (All it takes is one entry and the system handles everything else – for
    example: creating a deduction based on YOUR pay cycles and all you have to do is enter
    your annual costs.)
  • General Ledger costing on-demand at the Employee, Department, Location, or Company
    level or any combination in between

Want to learn more about Compass and how it fits your company’s needs? Sign up for our FREE webinar on August 2nd!

Eventbrite - Webinar - EBG Introduces Compass Human Resource Management

What a Broker-Tech Solution Offers Your Company | Maryland Employee Benefits


Why settle for just a traditional broker when you can have Broker-Tech?

We believe employee benefits should benefit job seekers, employees and employers alike. They need to be affordable, adaptable, and most importantly, uncomplicated. That’s why we’ve developed a broker-tech solution that combines our industry experience and proven expertise with an all-encompassing, single database technology to manage all of your HR, benefits, and compliance needs – no paper, no integrations, and no pain necessary.

That’s why we’re introducing Compass Workforce Management System. Take a look at the services we offer…

HRMS and Benefits Administration:

  • Software-as-a-Service End User License
  • HR Management Tables
  • Employee Benefits Management Tables
  • Employee Self-Service (ESS)
  • Online Benefits Enrollment
  • Manager Self-Service (MSS)
  • Paperless New Hire Onboarding
  • Standard Reports Library & Ad-Hoc Report Writer

FS Payroll and Tax:

  • Full-Service Payroll & Tax Administration
  • Check Printing & Distribution
  • General Ledger Functionality & Processing

ACA Compliance & Management:

  • Comprehensive ACA Compliance
  • ACA Set Up Wizard
  • Affordability Testing
  • ALE Monthly Calculators
  • Alerts and Notifications of Eligibility Thresholds
  • Custom Look Back & Stability Period
  • Year End Processing 1094-C & 1095-C Files
  • 1094-C and 1095-C Printing & Distribution

Standard ASO Services:

Payroll Account Processor Managing:

  • Payroll Processing & Posting
  • Completion of All Post-Payroll Reporting & Tax Inquiries

Data Entry Specialist Managing:

  • Pay Period Audit Logs
  • Time & Attendance Systems (if applicable)
  • Employee Status & Demographic Changes Processing
  • Self-Service & Login Troubleshooting Inquires
  • Electronic Transaction Management
  • New Hire Onboarding Management
  • Personnel Action Form Changes

Benefits Administration Specialist Managing:

  • Benefits Tables
  • COBRA Services
  • Plan Administration
  • Qualifying Events & New Enrollments in Benefit Plans
  • ACA Compliance Setup and Ongoing Maintenance
  • Benefits Deduction Inquiries
  • Benefits Administration w/ Carrier Updates

All these services are provided via a single database so you don’t have to worry about mismatched data or compliance oversights. Our implementation of the Compass Workforce Management System allows you to rest easy with the knowledge that your HR, Compliance and Finance departments are seamlessly synced.

Want to learn more? We are hosting two FREE webinars on July 26th and August 2nd! Click the links below to sign up today!


Eventbrite - Webinar - EBG Introduces Compass Human Resource Management

Eventbrite - Webinar - EBG Introduces Compass Human Resource Management

Introducing Compass Workforce Management System!

Are you tired of multiple data entry points for your benefits administration and payroll?  Does your workflow for benefits and payroll need to be automated?  Do you have budget constraints or are paying too much for a system that does not work efficiently now?

The EBG team is excited to introduce our new partnership with Compass HRM to bring you an innovative new human resource management system.  We will be holding two free, informational webinars to help familiarize you with this system and how it can best work to optimize your HR process on July 26th and August 2nd! Please sign up by following the links at the end of this post!

What is Compass HRM?

Employee Benefits Group is a distributor of The Compass Workforce Management System – a fully-unified, single database Human Resource Management platform that combines methodologies and user-friendly tools to help businesses effectively manage and maintain their “people assets” throughout the complete employment lifecycle.

Prime features include:

  • SaaS based delivery model
  • User-friendly interface and single sign-on access
  • SSAE 16 SOC 1 Type II Certified
  • End-to-end process automation
  • Built-in compliance functionality
  • Multi-level reporting and KPI dashboards
  • Extensive data management and storage functionality


What does the platform offer?

The Compass Workforce Management System offers tools to manage all of the below in an easy, self-service format:

  • Onboarding
  • Payroll
  • Performance
  • HRMS
  • Benefits
  • ACA Compliance
  • Cloud/SaaS
  • Security
  • Web UI
  • Notifications
  • Workflow
  • Analytics

How does it help with ACA Compliance?

We are here to streamline your ACA reporting process and remove the stress from staying up-to-date with compliance requirements! Here are the ways the Compass system streamlines your process to fulfill ACA regulations:

  • Benefits plan management
  • Online enrollment and benefits tracking/processing
  • HRIS data management for benefits profiles and eligibility
  • Time and labor hours tracking for FLSA and ACA eligibility
  • Pay data reporting and IRS tax code changes
  • ACA governmental compliance


Compass is easily tailored to fit companies ranging from 25-5000 employees.  We would love to speak with you and answer any questions you may have about if the Compass Workforce Management System is right for you! Please join us for one of our free webinars:

Eventbrite - Webinar - EBG Introduces Compass Human Resource Management

Eventbrite - Webinar - EBG Introduces Compass Human Resource Management