End-of-Year HR Checklist: Wrapping Up the Year with Confidence

As the year ends, HR professionals and business owners face a crucial task: ensuring their end-of-year responsibilities are completed efficiently and accurately. From compliance obligations to preparing for a fresh start in the new year, this checklist will guide you through the essential steps to close the year with confidence and set the stage for success in the months ahead.

1. Review Employee Records for Accuracy

• Ensure employee information, such as addresses, Social Security numbers, and job classifications, is up to date.
• Verify that all changes made during the year (e.g., promotions, terminations, benefits updates) are properly documented.
• Use this opportunity to clean up your HR software or physical records, removing duplicated or outdated files.

2. Conduct Year-End Performance Reviews

• Schedule one-on-one meetings with employees to review their accomplishments, challenges, and goals for the year.
• Use the reviews to gather insights for professional development plans and identify high performers for recognition or promotions.
• Tie performance evaluations to year-end bonuses or raises to boost morale and retention.

3. Prepare for Year-End Payroll and Tax Reporting

• Double-check all payroll data to ensure it aligns with year-to-date earnings, deductions, and taxes.
• Confirm deadlines for issuing W-2s (employees) and 1099s (contractors). These forms must be sent by January 31.
• Verify compliance with ACA (Affordable Care Act) reporting requirements for applicable large employers.
• Conduct a reconciliation of payroll taxes to ensure no discrepancies with IRS filings.

4. Verify PTO Balances and Carryover Policies

• Audit employees' unused vacation or sick time balances.
• Communicate carryover or "use-it-or-lose-it" policies clearly to employees.
• Consider offering payout options for unused PTO if allowed by your state and company policy.

5. Review and Update Employee Benefits

• Finalize open enrollment, ensuring all benefit selections are accurately recorded.
• Review vendor contracts for health insurance, retirement plans, or other benefits to ensure they meet your needs and budget for the coming year.
• Share updated benefits summaries with employees to avoid confusion in the new year.

6. Compliance Check: Stay Ahead of the Law

• Conduct an audit to ensure your business complies with all local, state, and federal employment laws.
• Review and update employee handbooks and policies to reflect changes in legislation.
• Prepare for new labor laws or tax changes that take effect on January 1, 2025.

7. Celebrate Successes and Recognize Employees

• Host a year-end meeting or celebration to thank employees for their contributions.
• Share company achievements from the past year to build a sense of pride and unity.
• Consider giving personalized thank-you notes, gifts, or awards to recognize outstanding performance.

8. Plan for a Smooth Transition into the New Year

• Set goals for the HR department and the company.
• Develop a training plan to address any skill gaps identified during performance reviews.
• Create a roadmap for onboarding new hires or implementing new systems in the coming year.

Why This Checklist Matters

Failing to close the year properly can lead to compliance risks, financial penalties, and missed opportunities to improve your workforce's experience. By following this checklist, you’ll not only meet your legal and operational obligations but also create a strong foundation for growth and success in the year ahead.

Closing Thoughts

The end of the year can be a hectic time, but with a well-organized plan, you can handle the workload efficiently while keeping your employees engaged and motivated. Start working on your checklist today and ensure you wrap up the year with confidence—your business, employees, and future self will thank you!