GNYADA October 2013 Newsletter

New Record Retention Schedule

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and Environmental – with important new records in the employment and environmental sections. It is a guide for keeping dealership records. At GNYADA’s request, the Department of Motor Vehicles pro- vided updated information showing which documents may now be saved electronically. How the record retention periods were determined The periods are set by either federal or state laws, while others are con- sidered best practices for dealerships. In some instances, you may wish to consider saving some records (such as repair orders) for longer than the time suggested on the chart. The two-year retention period for repair orders is based on DMV Regulations. However, other situa- tions, such as a warranty or contract dispute, may require you to produce a repair order four or six years after

the waranty or contract has expired. Dealers should retain documents until the mandated retention period expires and the records are no longer useful to the dealership. Once a determination is made to dispose of specific records, be sure to do so securely. Dealers must securely destroy any records containing non- public information (e.g., customer’s personal information). GNYADA thanks the following for their assistance in the preparation of this resource guide: James E. McGrath, III, Esq., Putney, Twombly, Hall & Hirson; Steve Rosenblatt, CPA, Rosenblatt, Levittan, Vulpis & Goetz; Joe Heaney, III, PE, Walden Associates and The DMV. Call Sue Bieber at 718.746.5900 for more information regarding record retention. n n n n

DEALER RECORD RETENTION This record retention chartprovidesgeneral information regarding retentionofmanydealership recordsanddoesnot constitute legal advice.The retentionperiods listedareminimum suggestedperiods,however,businesspracticeor lawmay requirepreserving records fora longerperiodof time. Dealers are permitted to store some business records electronically; however, you should proceed cautiously asmany rules continue to require theoriginalpaper format.The same retention rulesapply toelectronic records. Electronic recordsmustbeeasilyaccessible duringanaudit.Youshouldconsultwithyourdealershipattorneyand/oraccountanttoensurethatyourrecordretentionpracticemeets federaland stateguidelinesand isappropriate foryourbusiness.For speci cadvice, consultyour legaloraccountingprofessional.

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©2013GNYADA

GNYADA has updated one of its most popular guides, the Record Retention Schedule for Dealers . A copy is enclosed with this Newsletter . A New Feature This schedule is organized into six categories: DMV, Accounting, Business, Consumer, Employment,

GNYADA’s Workers’ Compensation Program ACT NOW TO SAVE THOUSANDS ONWORKERS’ COMP PREMIUMS! 6

If your current Workers’ Comp (WC) insurance requires a 60-day notifica- tion in order for you to consider another carrier or shop around, now is the time to act. GNYADA’s Insurance Brokerage can provide the letter you need to notify your carrier. That Reservation of Rights letter will not cancel or change your current policy in any way. Some WC carriers will charge penal- ties if they receive a cancellation notice without a Reservation of

Rights letter having been sent timely. GNYADA’s Insurance Brokerage can help you obtain a quote and avoid penalties if you contact us prior to your 60-day deadline. Act today and find out how much you can save on WC premiums. The GNYADAWorkers’ Compensation Program is fully insured and offered thru Magna Carta companies. We offer:

Managed care discount credits up to 10% – save off the already dis- counted premium. Individually underwritten policies; you benefit from premium savings and a dividend. Take advantage of this great member- ship opportunity and join other deal- ers who have reduced Worker’s Comp costs. Please feel free to con- tact Michael Conway for more infor- mation and to get a “Reservation of Rights” letter. Contact Michael at 718.746.8100 or mconway@gnyada.com .

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Policy flexibility – No Fees, No Long-Term Commitments, No Penalties.

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Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • October 2013 3