It is important to keep all records of employment taxes for at least 4 years and have them available for the IRS to review. These records should include:
Amounts and dates of all wage, annuity, and pension payments
Amounts of tips reported to the employer by the employer’s employees
Records of allocated tips
The fair market value of in-kind wages paid
Names, addresses, social security numbers, and occupations of employees and recipients
Any employee copies of Forms W-2 and W-2c that were returned to the employer as undeliverable
Dates of employment for each employee
Periods for which employees and recipients were paid while absent due to sickness and injury and the amount and weekly rate of payments the employer or third party payers made to them.
Copies of employees’ and recipients’ income tax withholding allowance certificates
Dates and amounts of tax deposits that the employer made and acknowledgement numbers for deposits made by EFTPS (Electronic Federal Tax Payment System)
Copies of returns filed and confirmation numbers
Records of fringe benefits and expense reimbursements provided to employees, including substantiation.