Final answer:
Records of employment taxes must be kept for at least four years after the tax due date or payment date, whichever is later, which is not an option listed in the question. These records are vital for reporting on tax returns and for audits.
Step-by-step explanation:
The length of time that records of employment taxes must be kept is determined by the Internal Revenue Service (IRS). According to the IRS, employers are required to keep all records of employment taxes for at least four years after the tax becomes due or is paid, whichever is later. Therefore, none of the multiple-choice options provided (1 year, 3 years, 5 years, 7 years) are correct according to current IRS guidelines.
These records should include information such as your employer identification number, personal data of employees, information on tax deposits made, and reports filed. It's important to maintain these records to support the information reported on tax returns and to use them in case of any disputes or audits by the IRS.