How many payroll records indicating the dates and hours worked by each registered employee must the licensee keep?

The correct answer emphasizes the necessity for licensees to maintain comprehensive payroll records for compliance and review purposes. Keeping records for the current year plus the two previous years ensures that any inquiries or audits regarding an employee's hours worked and employment history can be adequately addressed. This time frame allows for a thorough examination of different employment scenarios, such as wage claims or benefits eligibility.

By maintaining this extended record-keeping period, it helps not only in ensuring compliance with labor regulations but also provides a safeguard for the business against potential disputes that may arise from prior employment periods. Such a policy highlights the importance of thorough documentation in labor practices to foster transparency and accountability.

In contrast, keeping records for only the current year or just the current year plus one previous year may not offer sufficient historical context should questions arise regarding employment or pay discrepancies. On the other hand, maintaining records indefinitely or solely while an employee is registered does not align with standard practices for payroll records, as it could lead to unnecessary clutter and inefficiency in record management.