RETENTION NOTE: OTHER ACCOUNTING RECORDS - This section supplements Part 2, Section 2-2, Accounting Records section and schedules financial and accounting records found in most local governments specific to the disbursement of payroll. If a payroll-related record is not scheduled in this section use the Accounting Records section for the comparable record; e.g., payroll fund reconciliation should be retained for FE + 7 years under the retention for Banking Records (see item number 1025-28).

RETENTION NOTES: a) FEDERAL RETENTION REQUIREMENTS - Federal retention periods for personnel and payroll records arise principally from the administration of the Civil Rights Act of 1964, Title VII; the Age Discrimination and Employment Act of 1967; the Equal Pay Act; the Fair Labor Standards Act; the Federal Insurance Contribution Act; and the Federal Unemployment Act. These acts are administered by various federal agencies or departments of agencies and, because retention periods are set to enable each agency to carry out its particular oversight authority, different retention periods are often established for the same record. The longest applicable federal retention period is cited as authority for the retention period indi- cated. A federal regulation is not cited if a state law or regulation requires a longer retention period. A federal retention period is also not cited if a Texas statute of limitations makes a longer retention period advisable. For example, the federal retention requirement for employment contracts [see item number 1050-15(a)] is given as 3 years from the last effective date of the contract in 26 CFR 516.5, but suits in Texas may be brought by either party to such a a contract within 4 years of the occurrence of an alleged breach; therefore, a retention period of e 4 years from the last effective date of the contract is set in this schedule. All retention periods in this part apply, by authority of this schedule to all local governments, although some of them may be otherwise exempt from the federal requirement cited.

b) PERSONNEL FILES - The individual employee personnel file is not scheduled as a unit in this section; documents normally placed in such files are scheduled separately. Please note, however, that some information must be retained permanently [see item numbers 1050-12, 1050-52(b), and 1050-54(a)] on each employee.

c) TERMINATED EMPLOYEES - Notwithstanding any retention periods in this part, all personnel records existing on the date of termination of an involuntarily terminated employee must be retained for 2 years from the date of termination [29 CFR 1602.31, 1602.40, and 1602.49].

d) JTPA AND CETA EMPLOYEES - Any records maintained on applicants for or holders of positions paid in whole or in part from Comprehensive Employees' Training Act (CETA) funds or affirmative action apprenticeship program funds administered by the U.S. Department of Labor must be retained for 5 years from the date of enrollment in this program. [20 CFR] 676.35(b) and 29 CFR 30.8(e)]. This 5 year retention period is extended by authority of this schedule to comparable records on applicants for or holders of positions paid in whole or in part from Job Training Partnership Act (JTPA) funds.

e) DEFINITION OF EMPLOYEE - For the purposes of this part, the term "employee" also includes elected or appointed officials of a local government who are paid wages or a salary from any funds of the local government.

1050-50 DEDUCTION AUTHORIZATIONS - Documentation used to start, modify, or stop all voluntary or required deductions from payroll, including orders of garnishment or other court-ordered attachments. RETENTION: 4 years after separation or 4 years after amendment, expiration, or termination of authorization, whichever sooner

1050-51 DIRECT DEPOSIT APPLICATIONS/AUTHORIZATIONS. RETENTION: US (Exempt from destruction request requirement)

1050-52 EARNINGS AND DEDUCTION RECORDS.

a) A record containing the following payroll information on each employee: name, last known address and social security number, amount of wages paid to the employee for each payroll period, including all deductions. and date of payment. Retention of any of the following records will satisfy the retention requirement: RETENTION: 7 years

1) Individual employee earnings card or record that shows earnings and deductions for each pay period.

2) Master payroll register which shows earnings and deductions for each pay period.

b) A record containing the following minimum pension and deferred compensation information on each employee: name, date of birth, social security number, and amount of pension and deferred compensation deductions. Retention of any of the following will satisfy the retention requirement: RETENTION:  Permanent

1) Individual employee earnings card or record as in (a)(1).

2) Employee Service Record (see item number 1050-12) if it contains the prescribed pension and deferred compensation deduction data.

3) Master payroll register, or the final year-to-date register of each calendar year, if the register shows all persons employed during the year from whose wages pension and deferred compensation deductions were made.

4) Pension and deferred compensation deduction register, or the final year-to-date pension deduction register of each calendar year, if the register lists all persons employed during the year from whose wages pension and deferred compensation deductions were made.

5) Copies of annual or other periodic statements furnished to each employee detailing the deductions and contributions to a pension or deferred compensation plan during the past year or period.

c) Master payroll register, including year-to-date registers, if not used to satisfy either of the retention requirements set in (a) or (b). RETENTION: FE + 3 years

d) Subsidiary payroll registers, if not used to satisfy either of the retention requirements set in (a) or (b).

1) If data contained in the subsidiary payroll register is not contained in the master payroll register. RETENTION: FE + 3 years

2) If data contained in the subsidiary payroll register is contained in the master payroll register. RETENTION: 1 year

e) Copies of annual or other periodic statements furnished to each employee detailing the deductions and contributions to a pension or deferred compensation plan during the past year or period, if not used to satisfy the retention requirement set in (b). RETENTION: 2 years

f) Payroll adjustment records, including transaction registers, authorizations, and similar records authorizing and detailing adjustments to payroll records because of overpayment, underpayment, etc. RETENTION: FE + 7 years

1050-53 FEDERAL AND STATE TAX FORMS AND REPORTS.

a) Forms used to determine withholding from wages and salaries for payroll tax purposes. RETENTION: 4 years after separation or 4 years after form amended whichever sooner. [20 CFR 404.1225(b)(3), 26 CFR 31.6001-1(e)(2) for federal forms and by authority of this schedule for any state forms.]

b) Forms and reports used to report the collection, distribution, deposit, and transmittal of payroll or unemployment taxes. RETENTION: 4 years after tax due date or date tax paid, whichever later. [26 CFR 404.1225(b)(3), 26 CFR 31.6001-1(e)(2) for federal forms and by authority of this schedule for state forms.]

1050-54 LEAVE RECORDS.

a) A record containing a record of the unused accumulated sick leave of each employee if (1) all or a percentage of accumulated sick leave is used to calculate length of service and/or (2) accumulated sick leave is creditable to an employee if rehired. Retention of any of the following will satisfy the retention requirement: RETENTION:  Permanent

1) Individual employee earnings card or record as described in item number 1050-52(a) if it also contains accumulated sick leave data.

2) Employee Service Record (see item number 1050-12) if it contains the accumulated sick leave data prescribed.

3) Copy of the final time summary or leave status report, as noted in (d), of each separated employee.

b) Requests and authorizations for vacation, compensatory, sick and other types of authorized leave. RETENTION: FE + 3 years

c) Leave or hour-to-date registers. RETENTION: FE + 3 years

d) Copies of periodic time summary or leave status reports furnished to each employee containing information on vacation, sick, compensatory, or other leave earned and used, including the final report of separated employees if they are not used to satisfy the retention requirement set in (a). RETENTION: 2 years

1050-55 PAYROLL ACTION OR INFORMATION NOTICES - Documents used by payroll officers to create or change information in the payroll records of individual employees except deduction authorizations (see item number 1050-50) and federal tax forms [see item number 1050-53(a)]

a) Documents concerning hiring, termination, transfer, pay grade, position or job title, name changes, etc. RETENTION: 2 years [29 CFR 1602.31, 1602.40, and 1602.49]

b) Documents concerning adjustments to payroll and leave status. RETENTION: FE + 3 years

1050-56 TIME AND ATTENDANCE REPORTS - Time cards or sheets, including work schedules and documentation evidencing adherence to or deviation from normal hours for those employees working on fixed schedules. RETENTION: 4 years [40 TAC 301.6(a) and (i)]

1050-58 REQUESTS AND AUTHORIZATIONS TO ENGAGE IN REIMBURSABLE ACTIVITIES - Requests and authorizations for travel; participation in educational programs, workshops, or college classes; or for other bona fide work related activities in which the expenses of an employee are defrayed or reimbursed. RETENTION: FE + 7 years

1050-59 WAGE AND SALARY RATE TABLES.

a) If wage or salary rate for each position listed on an Employee Service Record (see item number 1050-12) is expressed in dollars. RETENTION: 2 years after last effective date [29 CFR 516.6(a)(2)]

b) If wage or salary rate for each position listed on an Employee Service Record (see item number 1050-12) is indicated by grade or step number only. RETENTION: Permanent