To comply with four-year records retention, which agency's regulations apply?

• A. U.S. Citizenship and Immigration
• B. Internal Revenue Service
• C. Social Security Administration
• D. Wage and Hour Division, Department of Labor

Answer: (B)

Four-year payroll recordkeeping is governed by regulations from the Internal Revenue Service. These records—such as payroll ledgers, tax withholdings, Form 941 filings, tax deposits, and copies of W-2s—are kept to support federal employment tax payments and to provide documentation in case of audits. The other agencies focus on different areas: immigration authorities handle work authorization records, the Social Security Administration deals with Social Security contributions and benefits, and the Wage and Hour Division enforces wage-and-hour laws and generally requires a shorter retention period for those records. So the four-year standard for payroll-related records comes from the IRS.