07/16/2022
Is it time to clean out your file cabinets? Here are a few tips:
What to keep and never shred:
Some important documents will be forever spared from the hungry maw of the shredder:
· All paperwork involving capital stocks
· Both certified and periodic financial statements
· Pension records
· Copyrights or trademarks
Quick tip: Make sure you keep all your documents safely organized in a locked filing cabinet away from prying eyes.
What to keep for a while and then shred:
As more and more businesses digitize, fewer bits of information reach the printed page. However, for administrative or legal reasons, small businesses may have to hang onto hard copies of printed documents for a duration of time required by a regulatory body before it’s safe to destroy them. These include:
• Tax documents: Wait at least three to six years, depending on tax status
• Employee onboarding information like W-4s or I-9s: Wait at least four years after termination
• Healthcare information: Varies according to law, but usually wait around six years
• Past client contracts: Wait at least six years after termination
• Employee contracts: Wait at least seven years after termination
Small business owners should consult with a legal advisor before shredding documents like these to ensure they stay compliant.
While the instinct to save these important documents isn’t one you should fight unnecessarily, timely disposals reduce the risks to current data security efforts by minimizing the amount of physical files small businesses are accountable for.
