Question

Chapter 2 discusses the guidelines for document retention and destruction. Obviously, we can't keep everything, but what are the rules for retention and destruction?

1. Discuss in your own words the purpose of document retention and destruction.
2. What are the guidelines for retention and destruction?

Note: Texbook we're using-Payroll Accounting 2020 6th edition, Author: Jeanette M. Landin

Answer 1

Document retention - A document retention policy identifies the documents which are need to be maintained, contain guidelines for how long the document need to be kept.

Document destruction - It helps to identify which documents need to be destructed immediately after the work is done. It also destructs the documents after being retained for the required specific period.

Purpose of document retention and destruction:

• The purpose of document retention and destruction policy is to provide a system for document retention laws, ensure that the valuable documents are retained by the organisation.
• It also saves the money, time and space.
• It also protect the organisation against allegations of selective document destruction and provide for routine destruction of non-business, superfluous and outdated documents.
• In general, documents that are not subject to a retention requirement, should be kept only long enough to accomplish the object for which they are created.
• This policy also ensures that necessary documents are adequately protected and maintained.
• Records which are not necessary by the organisation and are of no value are discarded in the proper time and fashion.
• This policy applies not only to physical documents but also to electronic documents.
• It ensures a uniform rule is being made and maintained in the organisation.
• It also helps in taking control of the documents which are maintained by the organisation.
• This policy ensures that no important documents are maintained recklessly and without care. All the material documents are taken care of by the organisation.

​Guidelines/Rules for retention and destruction:

The following are the guidelines or rules for retention and destruction policy-

The Retention periods vary with different types of information, based on content and a variety of other factors, including internal organizational need, regulatory requirements for inspection or audit, legal statutes of limitation, involvement in litigation, and taxation and financial reporting needs, as well as other factors as defined by local, regional, state, national, and/or international governing entities.

So depending upon the type of factors, documents need to be retained for the specific period. The basic information like record name, description, approved retention period, appropriate security requirements, selected destruction method, location of retention, date, responsible persons, series number of records, remarks, if any, all these information need to be maintained.

The records management in the organisation must ensure that all the records in whatever form, are maintained and managed economically, effectively and efficiently and access to these records is given for authorized personnel only.

The destruction of these documents after the completion of retention period must be done in a very careful manner because no document must be lost or held in hands of wrong person. All the important, confidential, private or sensitive documents need to be disposed of using a paper shredder and there should not be leakage of any information regarding any document. Disposal of document in electronic form is also be done with due care and attention. The destruction of documents needs to be taken care of in the same effective and efficient manner of retention of documents.