So you tossed the incompetent employee out on his ear after just two days on the job. Too bad you can't do the same with his paperwork.
Many business owners decide quickly whether they want to retain a particular employee.
Knowing how long to keep records associated with that employee proves to be another matter entirely. First, don't celebrate terminating an aggravating employee too quickly, especially if you feel yourself reaching for the paper shredder. You're going to find that it is easier to replace the worker than his employment records. The IRS doesn't impose a particular record-keeping system on business owners who intend to properly retain records. However, business owners learn over time that being neat and organized matter in this area is a good idea.