Records Retention and Shredding: When to Shred Documents
Knowing how long to keep business records—and when it’s safe to shred them—is critical for both compliance and efficiency. Holding onto files for too long can expose your organization to unnecessary risks, while shredding too soon may lead to legal issues or lost information. Let’s break down how to approach document retention and shredding with confidence.
Why Records Retention Matters
Every organization handles a wide range of sensitive documents—from employee records and client contracts to tax filings and internal communications. While some files must be kept for years due to legal regulations, others only need to stick around for a short time.
A proper records retention schedule ensures you’re:
Compliant with state and federal laws
Protected in case of audits or legal claims
Minimizing storage costs and physical clutter
Keeping your data secure by eliminating outdated records
How Long Should You Keep Documents?
Retention guidelines vary by industry and document type, but here are some general rules of thumb:
| Document Type | Suggested Retention Period |
|---|---|
| Tax Records | 7 years |
| Employee Payroll Records | 3–7 years |
| Hiring/Employment Applications | 1 year |
| Contracts and Agreements | 7 years after expiration |
| Bank Statements | 3–7 years |
| Medical Records (for healthcare providers) | At least 6 years (HIPAA requirement) |
| Client or Customer Records | 5–7 years after last interaction |
| Insurance Policies | Keep as long as active + 5–7 years |
| Business Licenses & Permits | Keep permanently or until expired |
⚠️ Pro tip: Always consult your legal or compliance team before disposing of any record tied to regulation.
Why Shredding Is the Secure Choice
Once documents have reached the end of their retention life cycle, they need to be disposed of securely—especially those containing personal, financial, medical, or proprietary business information.
Throwing old files in the trash or recycling bin leaves your organization open to data breaches, identity theft, and regulatory fines.
With professional shredding services, you ensure:
Secure chain of custody from pickup to destruction
NAID AAA-certified processes
Certificate of Destruction for compliance audits
Creating a Document Shredding Schedule
Don’t wait until you have mountains of paperwork piling up. Pairing your retention policy with a regular shredding schedule keeps your organization organized and protected.
Most businesses benefit from:
Locked bins placed onsite for daily use
Audit-friendly documentation showing proper disposal timelines
When in Doubt, Shred It
If you’re unsure whether a document still needs to be stored—but it’s not tied to compliance—it’s generally safer to shred than to risk exposure. Outdated files are a top target for internal leaks and external theft.
Need Help Managing Document Shredding?
At Paper Recycling & Shredding Specialist (PRSS), we help Southern California businesses set up secure, compliant shredding schedules that align with their records retention policies. Whether you need a one-time purge or ongoing service, we’ve got you covered.
👉 Contact us today for a free shredding consultation and get expert advice on when—and what—to shred.
