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Run the Payroll Fee Auditor →Blog · Payroll Management · Financial Services
Financial Services & Accounting Firms: Payroll Recordkeeping Requirements (2026)
Payroll recordkeeping for financial services firms starts at the federal baseline, three years for payroll records and two for the time records behind them, then adds what reaches this industry: SEC Rule 17a-4, 17 CFR 240.17a-4(e)(1) and SEC Rule 17a-4. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
Records specific to financial services firms
Broker-dealers must keep the records required for each associated person under SEC Rule 17a-3(a)(12) in an easily accessible place until at least three years after that person's employment or other association with the firm has ended.
Core broker-dealer books and records made under SEC Rule 17a-3(a)(1) through (3), (5), (21) and (22) must be preserved for not less than six years, with the first two years in an easily accessible place. Compliance and supervisory manuals must be kept until three years after they stop being used.
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 financial services firms the practical rule is that the pay codes for deferred compensation structures and FINRA recordkeeping 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.
- Broker-dealers must keep the records required for each associated person under SEC Rule 17a-3(a)(12) in an easily accessible place until at least three years after that person's employment or other association with the firm has ended. [SEC Rule 17a-4, 17 CFR 240.17a-4(e)(1)]
- Core broker-dealer books and records made under SEC Rule 17a-3(a)(1) through (3), (5), (21) and (22) must be preserved for not less than six years, with the first two years in an easily accessible place. Compliance and supervisory manuals must be kept until three years after they stop being used. [SEC Rule 17a-4, 17 CFR 240.17a-4(a) and (e)(7)]
Read the full guide to how to prepare for a payroll audit, and the rest of the financial services firm payroll library.
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Frequently Asked Questions
Financial services firm records: SEC Rule 17a-4, 17 CFR 240.17a-4(e)(1)
Broker-dealers must keep the records required for each associated person under SEC Rule 17a-3(a)(12) in an easily accessible place until at least three years after that person's employment or other association with the firm has ended.
Financial services firm records: SEC Rule 17a-4, 17 CFR 240.17a-4(a) and (e)(7)
Core broker-dealer books and records made under SEC Rule 17a-3(a)(1) through (3), (5), (21) and (22) must be preserved for not less than six years, with the first two years in an easily accessible place. Compliance and supervisory manuals must be kept until three years after they stop being used.
How long does a financial services firm 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 a financial services firm?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Deferred compensation structures, FINRA recordkeeping and performance fee payroll 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 Financial Services & Accounting Firms. 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
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