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§ LEGAL · DATA RETENTION

Data Retention Policy

Version 2026-06-01. This document is a plain-language contract, not legal advice — have counsel review it against your state's requirements before you rely on it in a dispute.

1. The seven-year rule

Payroll records are evidence. The IRS expects employment tax records to be kept at least four years, the FLSA three, and several states demand more — so Checkmate standardizes on a single, defensible seven-year retention period measured from the pay date, period end, or event date of each record. Within that window, records are preserved and cannot be deleted by an ordinary user action.

2. Retention schedule

RecordRetainedBasis
Pay stubs and payroll runs7 years from pay dateIRS §6001 · FLSA 29 CFR 516 · state wage rules
Tax filings, W-2s and 1099s7 years from filingIRS §6501 assessment window plus margin
Time entries and timesheets7 years from period endFLSA 3-year floor, extended to match payroll
Funding events and payout ledger7 years from eventFinancial audit trail
Audit log entries7 years from eventSecurity and compliance forensics
Employee identity records (SSN, address)7 years after separationTax and wage-claim exposure
Bank and card tokensDeleted on unlink or separationNo reason to keep a payout token after the rail closes
GPS clock-in coordinates24 monthsGeofence disputes only — not a long-term record
Remote-tracking IP and geolocation12 monthsShortest window that still supports a dispute
Support and Buddy chat transcripts24 monthsService quality

3. The Data Purge task

A scheduled background task sweeps every tenant nightly and flags each record whose retention window has closed, stamping it with the date it became purge-eligible and the retention basis that expired. The sweep is idempotent and, by deliberate design, non-destructive: a machine never deletes payroll history.

Flag → review → deliberate purge
  1. Nightly sweep flags expired records as purge-eligible.
  2. Administrators see the flagged inventory per record type, plus what is within six months of expiring.
  3. Deletion happens only when a human reviews and confirms it — and is itself written to the audit log.
  4. Anything under litigation hold, an open wage claim, or an active tax examination is excluded from purge.

4. Early deletion and the right to be forgotten

A deletion request under GDPR Art. 17 or CCPA §1798.105 is honoured immediately for everything not subject to a statutory hold: your login, profile, contact details, uploaded documents, GPS history and payment tokens. Payroll history your employer is legally required to keep is anonymized rather than destroyed — the financial record survives for the tax authority, stripped of the identifiers that point to you.

5. Backups and processors

Encrypted backups follow a rolling 35-day window; a record deleted from the live database ages out of backups within that period. Processors keep their own records under their own schedules: Stripe and Plaid retain transaction data for the period their financial regulators require, independent of this policy.

6. Questions

Retention, litigation-hold and purge requests: privacy@checkmatepayrolls.com.

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