Going Paperless

[waid10]

Hi. We will be scanning and electronically storing HR related documents as well as working towards on-line new hire enrollment and on-line status changes. Can someone point me to guidance on what are the issues we need to consider as we go through this process? What documents should be maintained with original signatures? As we attempt to go paperless, how long should we hold on to old enrollment forms? Other questions/issues I haven't thought of yet?

Thanks.

[J Simmons]

You ought to first take a look at ERISA sec. 209 and DoL Reg sec. 2520.107-1.

[GMK]

As a side issue, work out a plan that will ensure that you will be able to read the scanned documents 20 or 30 years from now, or even 6 or 7 years from now. New software is not always compatible with old files.

This is not meant to discourage you. It's just something to keep in mind.

[J Simmons]

As a side issue, work out a plan that will ensure that you will be able to read the scanned documents 20 or 30 years from now, or even 6 or 7 years from now. New software is not always compatible with old files.

This is not meant to discourage you. It's just something to keep in mind.

GMK, is there a specific type of software that you think will generate computer files that will have a longer compatibility life with future software developments than others? Or what approach do you take? My legal files are all .pdf scans--now. We did start out with a different type in the 1990s, but purchased a converter that would mass convert large batches to .pdf at night. That took about 2 months to accomplish. Having been through that 'rodeo', I wondered if you know of a better practice to follow.

[GMK]

First, I'm no expert in this. It's just an issue that bothers me in the 'paperless revolution,' because there is no good answer.

Right now, I think pdf is the best choice. It is a better choice than having the documents in a particular word processor file format (Word, WordPerfect, OpenOffice, etc.). Your 'rodeo' was a good idea.

Long term, who knows? We're OK as long as the next versions of reader software from Adobe, running on the next generations of operating systems, are back compatible (so they can read the older files).

Our tech guys think that plain olde ASCII text files are the most likely to be readable forever (no guarantees), but I don't know if text files would carry the same legal weight as a pdf file showing the original document with signatures. That would be your call.

Personally, if I think a document might be useful in the future, I put a paper copy in my file cabinet. Not very 21st century of me, but I like the assurance that if the need arises, someone will be able to read it 20 years from now. This irrational obsession is reinforced whenever I have to look up account or transaction records from the 1970's or 1980's.

Sorry I don't have better answer. If someone does, please post it.

[Monica Barnard]

We, too, are scanning everything to pdf files, but I am currently hanging on to the paper. Particularly, I am going to be hanging on to paper for the EGTRRA restated docs.

But, in light of the fact that DOL will be requiring Forms 5500 to be filed electronically via their Web site (rather than saving the file to a disk or CD and snail mailing it to them), we are considering going completely paperless as far as sending reports to clients.

I am researching use of secure file sharing. There are some programs out there specifically targeted to CPAs, and that may work, but if anyone has any ideas on this, please share!