Free Payroll Tool
See what your payroll provider really charges
Most providers hide per-run and add-on fees. Audit your real cost per employee in about 30 seconds, free.
Run the Payroll Fee Auditor →Blog · Payroll Management · Auto Dealership
Auto Dealerships: Payroll Recordkeeping Requirements (2026)
Payroll recordkeeping for auto dealerships starts at the federal baseline, three years for payroll records and two for the time records behind them, then adds what reaches this industry: 29 CFR 516.16 and DOL Fact Sheet #11. BEG runs auto dealership payroll for $45 per employee per month inside the payroll software you already use, all-inclusive, live in 3 to 5 business days.
Records specific to auto dealerships
For each employee treated as exempt under section 7(i), the employer must keep a symbol or notation on payroll records identifying the employee, a copy or written summary of the commission agreement including the representative period and its dates, and total compensation for each pay period showing commissions separately from noncommission straight-time earnings.
Dealers must keep records showing each employee's name, hours worked, rates of pay, regular and overtime pay, home address, date of birth if under 19, sex and occupation.
The federal baseline every employer keeps
29 CFR 516 requires payroll records for three years and the records they were computed from, time cards, schedules and piece or commission records, for two years. Employment tax records stay four years after the return they support. Forms I-9 stay three years from hire or one year from separation, whichever is later. For auto dealerships the practical rule is that the pay codes for front-end and back-end commission structures and flat-rate tech pay produce records of their own, and an audit reads those, not the summary.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- For each employee treated as exempt under section 7(i), the employer must keep a symbol or notation on payroll records identifying the employee, a copy or written summary of the commission agreement including the representative period and its dates, and total compensation for each pay period showing commissions separately from noncommission straight-time earnings. [29 CFR 516.16]
- Dealers must keep records showing each employee's name, hours worked, rates of pay, regular and overtime pay, home address, date of birth if under 19, sex and occupation. [DOL Fact Sheet #11]
Read the full guide to how to prepare for a payroll audit, and the rest of the auto dealership payroll library.
Managed Payroll, Handled.
BEG manages payroll at $45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
Auto dealership records: 29 CFR 516.16
For each employee treated as exempt under section 7(i), the employer must keep a symbol or notation on payroll records identifying the employee, a copy or written summary of the commission agreement including the representative period and its dates, and total compensation for each pay period showing commissions separately from noncommission straight-time earnings.
Auto dealership records: DOL Fact Sheet #11
Dealers must keep records showing each employee's name, hours worked, rates of pay, regular and overtime pay, home address, date of birth if under 19, sex and occupation.
How long does an auto dealership keep payroll records?
Three years for payroll records and two for supporting time records under the FLSA, four years for employment tax records under the IRS rule, and longer where an industry rule cited above says so.
What does managed payroll cost for an auto dealership?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Front-end and back-end commission structures, flat-rate tech pay and F&I chargebacks are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Auto Dealerships. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
From the blog