Recordkeeping: Are the I-9 and W-4 forms supposed to be kept in a common location?

07/31/07

Question: Are the I-9 and W-4 forms supposed to be kept in a common location? We have two different payrolls at our company and one of the supervisors thinks she is the only one allowed to keep certain files on her employees. I think the human resources representative should keep all employee files in one common location. Who is right? Answer: The human resources department is customarily the “keeper” of the files. There is no law that states that an employee’s entire file must be kept in one location, and there is no law stating that the file cannot be kept in one central location. However, it is usually easier, administratively, to keep an employee’s personnel file in one place. That way, you can find an employee’s complete history with the company easily, and there is less risk of losing important documentation.

W-4s can be kept with an employee’s file but can also be kept in a separate payroll file, in the payroll department, if need be. The W-4 form is kept by the company, and is sent to the Internal Revenue Service only if employees claim that they are exempt from income tax withholding or if they claim ten or more exemptions.

Although not required by law, it is best practice to keep your I-9 forms separate from employee personnel files. Since the forms contain information on age and national origin, keeping them separate enables your company to avoid charges of discrimination. In addition, keeping I-9 forms separate from personnel files makes it easier to produce them for an internal or INS audit. If you need to produce the forms for an INS audit, it also eliminates the possibility the INS will become privy to sensitive information in other parts of the file. Whoever is responsible for verifying, re-verifying, and purging I-9s should have them easily accessible.

Other products you might find useful include:
ComplyRight I-9 RecordKeeping Kit Employer's Guide To Recordkeeping Requirements
I-9 Compliance Kit
State and Federal Employment Law Manual
Personnel Pocket File Folder
Easy Reference-Employee Record Retention