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Saving Year-end Payroll Records

Every employer is required to save various payroll reports such as IRS Form 941 and W-2s for several years.  One church was asked to provide documentation of an employee’s compensation by month, thirty years later (!) because the former employee had applied for Social Security Disability and needed to document 40 quarters of eligible employment.   Although not legally required, it is an easy way to support your current and former employees in the event that they need the information.  What is the easiest way to save this?

In QuickBooks, create a Custom Summary report as follows:

  • Display tab
    • Date = Last Calendar Year
    • Report Basis = Cash
    • Columns by Month
    • Rows by Employee
    • Advanced — Display Rows = Non-zero
  • Filter tab
    • Accounts = All accounts
    • Payroll Item = All Adjusted Gross Pay
  • Header/Footer tab
    • Report Title = Adjusted Gross Pay by Month
  • Fonts & Numbers tab
    • Check box for “Except Zero Amounts”
  • Memorize the report

Print and save this report for each calendar year.

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