You may not employ many people – or even any people other than yourself – but that’s no excuse for not having your records in order just in case one of the many government agencies that can show up on your doorstep decides it wants to – and for other reasons, as well. [level-members]
Your records absolutely must include things like workers compensation, disability and unemployment insurance; payroll records in total and for each employee; W-4 forms; and copies of each employee’s IDs.
Your records should also include things like the job description for which each employee was hired, the resume the employee submitted, a signed application (if applicable), the references they provided, your notes on the interview and information when the position was offered and when it was accepted. If you have formalized company policies, you should have a copy of those signed to indicate that the employee has reviewed them.
Also keep up to date on filing any performance reviews, as well as complaints or compliments you’ve received about the employee.
And when an employee leaves or is fired, you should keep notes bout that, as well.
This information may seem like a hassle keep, especially if you’re small enough to feel that bureaucracy is a waste of time, but this form of recordkeeping is like insurance: you won’t realize how valuable it is until you need it and don’t have it. [/level-members]