Keeping reliable, accurate and complete records about your business is essential. Knowing when it is okay to destroy documents helps reduce storage clutter. Save space by regularly purging older records according to the rules. Details for each government agency are available in the hyperlinks:
Canada Revenue Agency (CRA): For GST/HST, income taxes, source deductions (EI, CPP), business income and expenses, property and motor vehicle use, you must keep all records and supporting documents 6 years from the end of the last tax year they relate to.
Yukon Workers' Compensation Health and Safety Board: The board does not have clear standards on record retention, but CFIB is pushing for specific timelines to be established.
Yukon Employment Standards: Employers must keep a complete and accurate record of the employee’s name, address, the number of hours worked by the employee in each day and each week, the employee’s gross earnings and deductions, accumulated overtime, time off with pay in lieu of overtime pay, vacations taken by the employee, leaves of absence taken by the employee, the employee’s conditions of employment.
In addition to these payroll records, employers are obligated to keep records of any written agreements to take time off in lieu of overtime, written agreements to average hours over a 2 week pay period, employee’s wage statements and written notice of reductions in an employee’s wage rate.
Employers are required to keep payroll records for a period of 12 months after work is performed or services are supplied by an employee.
Canada Labour Code: In workplaces under the jurisdiction of federal labour standards, payroll and employment records must be stored for at least 3 years.
Tips to improve your record retention
- You must store records at your principal place of business.
- Paper documents can often be converted to electronic images and stored on microfilm.
- Backup copies of electronic files should be stored in another location free from hazards that may affect the storage device, such as magnetic fields, direct light and excessive moisture. Be sure your chosen storage format is usable by the government agencies.