What To Do with Employees Files After They Leave the Company

To comply with IRS regulations, you must hang on to employee files for seven years after an employee leaves your company. In order to defend your company against possible lawsuits concerning breach of employment, failure to pay overtime, employment discrimination, sexual harassment, and any other

If filing space is an issue at your office, box the files of former employees and place them in dead storage until the seven-year holding period expires. It's cheaper than not being able to defend yourself in the event of an audit or lawsuit.