OCPS Recordkeeping & Reporting Requirements 2 — Questions and Answers
Question 1: Under FLSA, how long must employers retain payroll records including wage rates and hours worked?
- 1 year
- 2 years (Correct answer)
- 3 years
- 5 years
Correct answer: 2 years
FLSA requires payroll records showing wages paid and hours worked to be retained for at least 2 years.
Question 2: Which IRS form must employers file annually to reconcile total wages paid with amounts reported on Form W-2s?
- Form 941
- Form 944
- Form W-3 (Correct answer)
- Form 1096
Correct answer: Form W-3
Form W-3 is the Transmittal of Wage and Tax Statements used to reconcile all W-2s submitted to the SSA.
Question 3: An employer discovers a payroll reporting error after filing Form 941. Which form is used to correct the error?
- Form 941-X (Correct answer)
- Form 943
- Form 945
- Form W-2c
Correct answer: Form 941-X
Form 941-X is the Adjusted Employer's Quarterly Federal Tax Return used to correct previously filed Form 941 errors.
Question 4: Under ERISA, how long must summary plan description (SPD) records be kept after the plan year to which they apply?
- 3 years
- 6 years (Correct answer)
- 10 years
- Indefinitely
Correct answer: 6 years
ERISA requires plan records, including SPDs, to be retained for at least 6 years.
Question 5: Which agency receives the annual filing of Form W-2 copies submitted along with Form W-3?
- IRS
- Department of Labor
- Social Security Administration (Correct answer)
- EEOC
Correct answer: Social Security Administration
Copy A of Form W-2 along with Form W-3 transmittal is submitted to the Social Security Administration (SSA).
Question 6: A new hire fills out Form I-9 on day 1. By when must the employer complete Section 2 of the I-9?
- Same day as Section 1
- Within 3 business days of hire (Correct answer)
- Within 5 business days of hire
- Within 30 days of hire
Correct answer: Within 3 business days of hire
Employers must complete Form I-9 Section 2 within 3 business days of the employee's first day of employment.
Question 7: Which of the following payroll records is specifically required to be retained for at least 3 years under FLSA?
- Time cards showing daily and weekly hours
- Collective bargaining agreements (Correct answer)
- Individual employee pay rates
- Employee I-9 forms
Correct answer: Collective bargaining agreements
Collective bargaining agreements and sales and purchase records must be retained for 3 years under FLSA.
OCPS Recordkeeping & Reporting Requirements 2
Under FLSA, how long must employers retain payroll records including wage rates and hours worked?