As we approach the end of 2023, it’s crucial to ensure that your organization is prepared for various HR and business compliance tasks that can have a significant impact on your operations in 2025. In this blog post, we’ll provide you with a comprehensive guide to help you navigate year-end HR and business compliance preparation. Whether you need assistance with payroll, HR compliance, or business financial and tax matters, JBCS has got you covered.
1. Employee and Year-End Payroll Prep
- W-2 Prep: It’s essential to remind your employees to review the personal information on their paychecks, specifically their addresses and social security numbers. Accurate information is crucial for filing W-2s and W-3s. Addressing this issue can help you avoid the need to resend copies of W-2s to the correct address.
- Benefits Review: Review your annual deductions for employee benefits. Ensure that the correct amounts have been deducted or attributed to each benefit. Pay attention to maximum limits on flexible spending accounts to prevent overages.
- Retirement Plans: Review totals for retirement plans and flexible spending plans and send this information with estimates to your plan administrator as soon as possible. This allows time for adjustments and ensures a smooth year-end compliance testing process.
2. Open Enrollment Prep
- Employee benefits plan Open Enrollments for a January renewal date often start in October or November. Conduct an employee benefits satisfaction survey as soon as possible to gauge employee satisfaction with the current benefits package and gather input on potential changes.
- Review your current benefit bills to ensure that all eligible employees are enrolled. Don’t forget to include employees on leave during open enrollment.
3. Company Year-End Financial and Tax Prep
- Ensure you have W-9s on file from all vendors to facilitate the 1099 filing process. Verify vendor information to issue 1099s accurately.
- Update your asset list with new personal business property assets, if any, for the Personal Property Tax (PPT) filing in Washington state.
- Remind company owners to track their business-related mileage for tax purposes and evaluate owner fringe benefits to catch up on any missing information.
- Review your financial reports to address any red flags before year-end, ensuring proper categorization of expenses and tracking of owner expenses for journal entries and estimated tax payments.
- Budgeting often takes place now. Identify who needs to be involved in the process, providing year-to-date financial data, and scheduling budget meetings.
4. HR Compliance Checklist for 2025
- HR compliance is essential to avoid penalties and fines. An HR compliance checklist serves as a guide through HR-related tasks, from payroll and hiring to benefits and more.
5. Payroll and Tax Compliance Review
- Verify employee information, check W-2s for accuracy, and prepare year-end documents required for tax filings, such as the CARES Act Employee Retention Credit, FICA and FUTA reporting, Affordable Care Act requirements, and independent contractor payments.
6. Employee Benefits Compliance Review
- Review group health plan renewals, ACA requirements, and healthcare plan filing requirements and deadlines.
7. Compensation Policy Review
- Evaluate employee compensation to ensure competitiveness in the 2025 job market.
- There were recent Employment Law changes (and proposed changes) at the state and federal levels across the US that impact salary thresholds and overtime. Now is the time to conduct a salary review and ensure your employee classifications align with new regulations, as well as creating new compensation plans to ensure you’re complying with regulations.
8. Staffing and Training Processes Review
- Create or update your 2025 training calendar and review employee time off and business continuity plans.
- We offer a wide variety of employee training courses, including our new EQ Training.
9. Update Your Employee Handbook
- Review and update your employee handbook, incorporating changes in employment and labor law, as well as updates to company benefits, culture, and remote work policies.
- Last year there was an NLRB Ruling that has big implications for businesses. Make sure you know and understand these changes as you may have to update your Employee Handbook. Read our article here.
10. Compliance Reporting Deadlines
- Stay on top of key compliance deadlines, such as filing W-2s, ACA reporting, and EEO-1 reporting.
By following this comprehensive guide, you can ensure that your organization is well-prepared for the challenges and opportunities that 2025 may bring. If you need assistance with your year-end planning or require support in building a successful business strategy, don’t hesitate to contact JBCS.
At JB Consulting Systems, we’re here to help you navigate the complexities of HR and business compliance so that you can focus on what matters most – the success of your organization.