What is a business records retention policy?

A business records retention policy is a plan created by a business that outlines how long certain documents related to the business should be kept. This policy ensures that the business maintains tangible records of its operations and activities. Business records retention policies in Michigan outline which type of documents the business must keep and for how long. Generally, tax documents and accounting records must be kept for at least four years, while personnel files and payroll records must be kept for at least six years. This means that if the business needs to access any of these documents after the designated time period, they should have already been stored for future purposes. In addition to the documents listed above, the Michigan law also requires that businesses maintain records relating to certain activities, such as health and safety, for a minimum of three years. Furthermore, records related to insurance and environmental protection should also be retained for at least four years. It is important to note that although the law outlines a general timeline for which documents should be kept, each business may have other requirements based on its specific industry or operations. To ensure compliance, businesses should consult with experts to create an appropriate records retention policy that meets local, state, and federal regulations.

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What is a business records retention policy?

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