COVID-19 & Your Business: Frequent Questions

What records should an employer maintain and for how long? (29 CFR 826.140)

Employers should maintain the following records for four years from the date the tax return claiming the credit is filed:

  • Employee request for leave and documentation supplied to the employer. Any information given orally should be documented by the employer.
  • Documentation pertaining to the exemption for small businesses (i.e., less than 50 employees) should maintain the determination and the documentation to support that determination.
  • To claim tax credits from the Internal Revenue Service (IRS), the following records
    • Documentation showing how the employer determined the amount of paid sick leave and expanded family and medical leave paid to employees that are eligible for the credit, including records of work, telework and Paid Sick Leave and Expanded Family and Medical Leave;
    • Documentation showing how the employer determined the amount of qualified health plan expenses that the employer allocated to wages (this requires far more than just the premium and varies by how the plan is funded and can vary by plan);
    • Copies of any completed IRS Forms 7200 that the employer submitted to the IRS;
    • Copies of the completed IRS Forms 941 that the employer submitted to the IRS or, for employers that use third party payers to meet their employment tax obligations, records of information provided to the third party payer regarding the employer’s entitlement to the credit claimed on IRS Form 941;
    • Other documents needed to support its request for tax credits pursuant to IRS applicable forms, instructions, and information for the procedures that must be followed to claim a tax credit. For more information, please consult the page from the IRS website referenced above in Question .
    • Copies of each employee’s certification requesting the leave which includes all of the details required by the IRS as explained in answer 43 above.

In addition, but not set forth in the regulations, employers would be prudent to document any denied requests for leave, the reasons for the denial, and any communications with the employee (memos of oral conversations, emails, texts, etc.).

Last updated April 9

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