INQUIRY: Can you tell me how long we need to keep Time sheet records? I have heard 4 yrs and several others. Not sure which is correct. Also expense reports?
RESPONSE: There are General Guidelines but other factors pertaining to the specific contractor and even contract type may come into play. FAR 4.7 is the key reference on this issue.
The excerpts from FAR 4.7 listed below can also be included in the Policy Manual as guidelines. Although 2 years seems to be clearly listed (and as always, do a current review of FAR 4.7 to confirm), many firms hold to the 4 years for most of their records, just in case. These are general guidelines and there are exceptions based on certain situations. A firm can also make electronic copies of their information, under certain guidelines, and the electronic copies will be considered adequate documentation.
FAR 4.7 excerpts for TIME RECORDS:
4.705 Specific retention periods
The contractor shall retain the records identified in 4.705-1 through 4.705-3 for the periods designated, provided retention is required under 4.702. Records are identified in this subpart in terms of their purpose or use and not by specific name or form number. Although the descriptive identifications may not conform to normal contractor usage or filing practices, these identifications apply to all contractor records that come within the description.
4.705-2 Pay administration records.
(a) Payroll sheets, registers, or their equivalent, of salaries and wages paid to individual employees for each payroll period; change slips; and tax withholding statements: Retain 4 years.
(b) Clock cards or other time and attendance cards: Retain 2 years.
(c) Paid checks, receipts for wages paid in cash, or other evidence of payments for services rendered by employees: Retain 2 years.
For additional references on expense reports, see FAR 4.7.
Hope this helps!