If you are anything like me, the mere thought of remembering all the things that need to happen at year end is overwhelming. Closing out the year’s payroll, benefit changes, remembering ACA requirements (I hate benefit things) and more. And then, before you know it Q1 is over and you haven’t done all the things you needed to in order to set the new year up right.
It can feel like such a slog (that’s a technical term by the way).
So I asked my team, who thankfully is much better at this than I am, to put together our ultimate checklist of things we always do to close out one year and open the next. We are doing this across many clients so have definitely refined the list over time and feel it’s pretty comprehensive.
Here’s a sneak peek at some of the topics covered in the checklist, broken into key categories:
1. Compliance and Reporting
Navigating compliance requirements to ensure a smooth transition into the new year. The checklist includes tasks such as:
ACA Reporting: Prepare and distribute Forms 1095-C (if applicable).
Tax and Reporting Requirements: File year-end forms like W-2s and 1099s.
Compliance Check: Review changes in labor laws and update required notices.
These steps ensure your organization meets regulatory deadlines and stays ahead of any legal changes. But I bet you already knew about these.
2. Payroll and Benefits
The end of the year is the perfect time to review payroll and benefit-related processes. Highlights include:
Create New Payroll Calendar: Distribute a 2025 payroll schedule to employees.
Adjust Tax Withholding: Update systems to reflect any changes to tax rates.
Unused Benefits: Notify employees of expiring benefits, such as FSA funds or PTO.
These actions help avoid disruptions in payroll and provide employees with essential benefit updates. I always forget about unused FSA.
3. Strategic Planning and Goals
Set your HR department up for success in 2025 by aligning your plans with company goals:
Headcount Planning: Analyze hiring trends and needs for the new year.
Review and Update Goals: Align HR objectives with broader company priorities.
Culture Refresh: Kick off the year with an all-hands meeting to reinforce values and share strategic priorities.
Small employer HR is often reactive rather than proactive simply due to the nature of the role and limited resources. But thinking about these things can help you be a bit more proactive on the softer side of HR.
4. Employee Engagement and Appreciation
End the year on a high note with initiatives that show your employees they’re valued:
Employee Appreciation: Organize an end-of-year celebration or send personalized holiday thank-you notes.
Culture Recap: Highlight memorable moments from 2024 in an engaging end-of-year newsletter.
Performance Review Process: Set up a calendar for performance reviews to ensure feedback is timely and impactful.
Celebrating successes and communicating effectively can boost morale and set a positive tone for 2025.
5. Technology and Systems Updates
HR systems require regular maintenance to ensure they’re running smoothly:
HR Tech Audit: Review tools for usability and efficiency, and roll out updates.
Update HRIS Systems: Ensure payroll and benefits portals are current for 2025.
These steps can help improve efficiency and enhance employee experiences with HR technology. How many of us have technology with features we aren’t even using. Start of year is a great time to see where we may be able to improve efficiency by using all of the features we have paid for.
Ready to Dive Into the Full List?
This is just the beginning! The complete checklist provides detailed descriptions and additional tasks to ensure you’ve covered every base for a successful year-end transition. We’ve even included suggested deadlines, but don’t worry if you are behind. The checklist will get you back on track in no time.
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