Keeping Employment Tax Records

Records for employment taxes should be kept for at least four years. These should be available for IRS review. Records should include:

Dates and amounts of tax deposits you made.

Your employer identification number.

Dates of employment.

Amounts and dates of all wage, annuity, and pension payments.

Copies of returns filed.

The fair market value of in-kind wages paid.

Names, addresses, social security numbers, and occupations of employees and recipients.

Records of fringe benefits provided, including substantiation.

Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them.

Copies of employees’ and recipients’ income tax withholding allowance certificates (Forms W-4, W-4P, W-4S, and W-4V).

Any employee copies of Form W-2 that were returned to you as undeliverable.

Amounts of tips reported.

Records of allocated tips.

Consider having your power of attorney, your California tax lawyer, represent you when questions arise concerning your taxes. Call Mitchell A. Port at (310) 559-5259.