NEW JERSEY TAX RECORDS
State tax returns
Permanent
Sales tax exempt certificates
7 years
New Jersey Sales Tax records
4 years
Employer tax deposit records
5 years
Payroll records showing amounts and dates of pay, any deductions or
bonuses, and taxes withheld
5 years *
W-2 and W-4 forms
5 years *
EMPLOYMENT RECORDS
Immigration (INS Form I-9)
As long as employed,
then after termination
for 3 years after hiring,
or 1 year after
termination, whichever
is longer*
Employer sponsored group health plan records required under HIPAA
relating to the privacy of employee medical information
6 years *
Employment applications (not hired)
1 year *
Employee handbook
Permanent
Pension and retirement records
7 years after employee
leaves plan
Personnel files
3 years after
termination
2024 RECORD RETENTION GUIDE FOR
NEW JERSEY AUTO DEALERS
This guide lists both mandatory document retention periods and guidelines for prudent practice
regarding records for which there is no specific legal requirement. Legally mandatory retention periods
are those marked with an asterisk (*). It should be remembered, however, that these are minimum
required periods. In some cases, sound practice requires preserving such records for a longer time, while
there may be other cases in which they may be disposed of as soon as is permitted.
This guide is intended to serve as a tool to assist in fashioning a document retention policy. Dealers
are encouraged to consult with their accountant or legal counsel to ensure their policy and practices are
appropriate. Page 5 contains the recordkeeping requirements of the new FTC CARS Rule.
There will be further information provided concerning these new requirements. If there is
conflict between similar provisions, the higher term governs.
NJ CAR RECORD RETENTION GUIDE (CONT.)
PAGE 2
Record of name, address, date of birth, social security number, occupation,
and period of employment for all employees
5 years
Required employee notifications
Permanent
Time cards or time sheets
7 years
Records documenting earned sick leave used, paid, and carried over
5 years
Unemployment Insurance records
7 years
Worker’s Comp claims and related documents
7 years
FEDERAL TAX AND IRS RECORDS
NOTE: The Internal Revenue Code requires you to keep “records appropriate to your trade or
business” and to keep such records for so long as they “may become material in the administration of
any internal revenue law.” The general limitation period for an IRS audit is three years, but this is
extended to six years in cases of serious tax misconduct. Prudent practice, therefore, requires keeping all
records necessary to document tax returns and schedules for a minimum of six years. As a general rule,
no records relating to federal or State taxes should be disposed of “automatically” pursuant to a schedule
or policy. Instead, tax records should only be disposed of after an affirmative decision to do so by the
person responsible for tax audits, such as the dealer’s CFO or accountant.
Depreciation schedules and backup
7 years after disposition
of asset
Filed tax returns, schedules, statements, and supporting documentation
Permanent
Other tax records
3 years after filing *
Tax files material to the administration or enforcement of IRS law
Permanent
Employment withholding tax records
4 years *
Medicare and FUTA taxes
4 years *
FICA (Social Security) wage records
4 years *
W-2 forms
4 years *
W-4 forms
4 years *
Form 8300 (cash transaction reports)
7 years *
1099 Forms
5 years *
Excise tax returns, schedules, statements, and supporting records and
documentation
3 years *
Excise tax - gross vehicle weight and serial numbers for trucks, tractors, and
trailers sold
3 years *
Records of taxable or tax-free transactions
Permanent
RECORDS REQUIRED BY THE FAIR LABOR STANDARDS ACT
Employee’s name, DOB, gender, occupation
3 years *
Rate of pay and method of calculation
3 years *
Hours worked each week
3 years *
Regular and overtime pay each week
3 years *
Withholding and bonuses
3 years *
Time Cards
2 years *
NJ CAR RECORD RETENTION GUIDE (CONT.)
PAGE 3
Records of wage assignments or garnishments
2 years *
FAMILY AND MEDICAL LEAVE ACT RECORDS
All FMLA records
3 years *
OSHA RECORDS
All OSHA records and correspondence (including the log and summary of all
occupational injuries and illnesses)
5 years *
DEPARTMENT OF TRANSPORTATION RECORDS
Odometer mileage disclosures
5 years *
Tire purchase records (name, address of purchasers and tire I.D. nos.)
3 years *
Gray market importers – certificate of conformity
8 years *
Gray market importers – all records regarding purchase, transport,
modification, and testing
8 years *
ENVIRONMENTAL RECORDS
New Jersey DEP and federal EPA environmental records, manifests and
receipts
Permanent
Freon – a record of every instance in which Freon is recovered from a
vehicle
3 years *
Gray market importers – all records of purchase, importation, modification,
testing, and certification
Permanent
GENERAL BUSINESS RECORDS
Accounts receivable and payable
7 years
Accident reports/claims
7 years after settled
Audit reports
7 years
Bank deposit slips
7 years
Bank reconciliations and cancelled checks
7 years
Brokerage statements and stock transaction records
Permanent
Appraisal and valuation reports
7 years
Contributions to charities and nonprofit organizations
7 years
Corporate books, records, and stock transactions
Permanent
Correspondence (legal and important matters)
7 years
Contracts, notes, and leases
7 years after expiration
Evacuation and emergency action plan
Permanent
NJ CAR RECORD RETENTION GUIDE (CONT.)
PAGE 4
Insurance policies and certificates, including proof of Workers’
Compensation coverage from vendors and contractors
Permanent
Journals and ledgers
Permanent
Safeguard Policy (document safeguard plan required by FTC)
Permanent *
AUTOMOTIVE AND FINANCE BUSINESS RECORDS
Advertising copy (
++
clock starts from the date of sale of an advertised vehicle)
(See
FTC CARS Rule Below)
180 days*
++
Air bag repairs, activation and deactivation records
Permanent
Bills of lading, copies
7 years
Consumer credit applications
25 months *
(even
when there is no
purchase)
Privacy Notices
2 years
Adverse Action Notices
(when required)
5 years
Risk Based Pricing Notices
5 years
Credit Reports
5 years
ECOA-Fair Credit Compliance records
5 years
Safeguards Rule Policy and Compliance Records
Permanent
Red Flags Rule Policy and Compliance Records
Permanent
Customer buyer’s order or contract, when sale not completed
1 year
Deal jackets
7 years
Dealer swap transactions
7 years
Demo vehicle file
7 years
Financing dealer agreements
5 years after expiration
Parts tickets
2 years
Repair orders and estimates
2 years
eTemp Registrations – voided copies for both in and out-of-state temporary
registrations
3 years *
Warranty, incentives, and rebate submission documents
7 years
Odometer Disclosure Statements, POAs
5 years
ECOA Compliance Program Records
5 years
PROPERTY/FACILITIES RECORDS
Appraisals
Permanent
Blueprints, plans, drawings
Permanent
Deeds, titles, mortgages
Permanent
Maintenance and improvement records
Permanent
Depreciation schedules and supporting documentation
7 years after asset
disposition
Property tax records
Permanent
NJ CAR RECORD RETENTION GUIDE (CONT.)
PAGE 5
FTC CARS RULE RECORDKEEPING REQUIREMENTS
Effective July 30,
2024
Copies of materially different advertisements, sales scripts, training materials,
and marketing materials regarding the price, financing, or lease.
24 months from the
date the record is
created*
Copies of all materially different add-on lists and all documents describing
such products or services that are offered to consumers.
24 months from the
date the record is
created*
Copies of all purchase orders; financing and lease documents with the dealer
signed by the consumer, whether or not final approval is received for a financing or
lease transaction.
24 months from the
date the record is
created*
Copies of all written communications relating to sales, financing, or leasing
between the dealer and any consumer who signs a purchase order or
financing or lease contract with the dealer.
24 months from the
date the record is
created*
Copies of records demonstrating that add-ons in consumers’ contracts
provides a benefit, including copies of all service contracts, GAP
agreements, and calculations of loan-to-value ratios in contracts including
GAP agreements.
24 months from the
date the record is
created*
Copies of all written consumer complaints relating to sales, financing, or
leasing, inquiries related to add-ons, and inquiries and responses about
vehicles.
24 months from the
date the record is
created*
