Which documents must be retained for 4 years from April 15 following the tax year?

The correct answer emphasizes the importance of retaining payroll registers and receipts for payroll tax records for a specified duration. According to the IRS requirements, businesses are required to maintain payroll records that include, but are not limited to, wages paid, employee tax withholding, and other relevant payroll tax information for at least four years from April 15 of the year following the tax year. This is crucial for ensuring compliance with federal tax regulations and facilitates any audits or inquiries that may arise. Retaining these documents helps employers verify their payroll processes and ensure that all taxes have been accurately reported and paid.

The other options, while important in their own contexts, do not have the same retention requirements as payroll records. Performance evaluations and training records are generally not mandated to be retained for such an extended period. Employee handbooks and policies, although they serve a vital purpose for organizational culture and compliance, do not specifically have a defined retention period tied to payroll or tax records. Insurance policy documents, meanwhile, are typically regulated under different guidelines and may have their own retention stipulations that vary based on the type of insurance. Thus, the emphasis on payroll records is crucial for compliance and audits, making this option the correct choice.