Home / Solutions / UKG & Kronos Migration / Payroll data retention & compliance
    PART OF UKG / KRONOS ARCHIVAL

    Payroll Data Retention & Compliance (Payslips, SOX, IRS)

    How long you must keep payroll records and payslips, why a retired payroll system still has to retain them, and how a secure archive satisfies the rules. General guidance, not legal advice.

    IRS ~4 yrs
    Employment tax
    FLSA ~3 yrs
    Payroll records
    SOX 7 yrs
    Public companies
    State
    Varies

    How long to keep payroll records

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    IRS — employment tax

    Employment-tax records are generally kept for at least four years after the tax is due or paid.

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    FLSA — payroll

    Federal wage-and-hour rules generally require payroll records for about three years, and records used to compute pay for about two years.

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    SOX — public companies

    Sarbanes-Oxley generally requires audit and accounting records — which can include payroll — for seven years.

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    State & other

    State law, unemployment, workers’ comp and benefit rules add their own periods, often longer.

    The practical result: after you switch payroll systems, most of the old records must remain intact and retrievable for years — which is why you archive rather than delete. Confirm the exact periods with your payroll, tax and legal teams.

    Why a retired payroll system still has to retain data

    • Tax notices and amended returns can arrive years later
    • Wage-and-hour claims and audits reach back over the retention window
    • Employees request historical payslips and W-2s / year-end forms
    • Losing payroll records during a system change is itself a compliance failure

    How an archive meets retention

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    Complete & immutable

    A read-only archive keeps payroll records intact for the full window and reconciles to source to prove nothing was lost.

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    Access controlled & logged

    Role-based read-only access with full audit logging.

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    Searchable payslips

    Retrieve any employee’s pay history or payslip for a notice, audit or dispute.

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    Without the legacy license

    Meet retention on a low-cost archive instead of keeping UKG/Kronos alive for read access.

    Frequently asked questions

    How long do you have to keep payroll records?

    It depends on the rule: the IRS generally expects employment-tax records for at least four years; FLSA generally about three years for payroll (two for wage-computation records); SOX generally seven years for public-company audit/accounting records; and state and benefit rules add their own, often longer, periods.

    How do I archive payslips for compliance and audits?

    Extract the historical payslips and pay data from your payroll system into a secure, read-only archive, reconcile it to source, and provide self-service search — so payslips remain retrievable for the full retention window without keeping the old system running.

    Can we decommission our payroll system and still meet retention?

    Yes — archive the payroll history and payslips to a compliant read-only store, then retire the system. The archive satisfies retention while you stop paying for the legacy license.

    Migrating or retiring UKG / Kronos?

    Tell us the system — UKG Pro, UKG Pro WFM or Kronos Workforce Central — and whether you’re migrating or archiving. We’ll scope the HR, payroll and time data move.