The end of the year can be an extremely busy time for human resources professionals. However, a well-planned and effective year-end process can help ensure that HR teams stay compliant with laws and regulations and that all necessary tasks are completed in an organized, timely manner.
Keeping Your Organization Compliant
Compliance is a foundational responsibility of every HR team. Conducting regular compliance reviews can help keep an organization aligned with federal, state and local laws and regulations. Key areas to assess include:
- Employee Handbooks
- Workplace Guidelines
- Insurance Coverages
- Benefit Plans
- Job Descriptions
- Safety and Security Procedures
- Harassment Prevention Policies
Personnel records should be well-maintained, including securely archiving files for former employees and checking active employee files for accuracy. OSHA logs must stay current to reflect work-related injuries or illnesses.
It’s also important to distribute annual compliance notices to employees and to submit all required reports, such as the EEO-1 Component 1 Report to the U.S. Equal Employment Opportunity Commission.
Training is another area to revisit. Confirm that employees have completed any required courses and understand any updates to compliance-related policies as they head into the new year.
Payroll and Tax Responsibilities for HR
Payroll and taxes are often a joint effort between an organization’s human resources and finance teams. As the year ends, HR professionals can support accurate payroll processing by:
- Finalizing payroll schedules and reviewing payroll balances
- Confirming and updating employee contact information
- Preparing for the first payroll cycle of the year, including adding payouts for unused time off (if applicable)
- Calculating remaining time off and confirming employee carryover amounts
- Reviewing and distributing W-2 and 1099 forms to employees and contractors
- Comparing salary ranges to market benchmarks and considering cost-of-living adjustments when appropriate
Employee Benefits
By the end of the year, most employers – with the exception of many schools and public entities – have concluded or are currently completing open enrollment. Your strategic benefits partner should have already guided you through renewal, enrollment and compliance milestones.
At this stage, HR teams should focus on completing any remaining administrative tasks and preparing for the new plan year. Key actions may include:
- Ensuring all applicable plan filings and deadlines are addressed
- Confirming that Medicare Part D notices have been distributed to eligible employees
- Ensuring employee benefit elections and dependent coverages are accurately recorded
- Reviewing Affordable Care Act (ACA) reporting requirements, including classification as an applicable large employer (ALE)
- If applicable, confirming Health Flexible Spending Account (FSA) rollover amounts and reminding employees of any “use-it-or-lose-it” deadlines
This is also an ideal time to begin evaluating how your company’s benefit offerings compare to market standards. If benefit-specific survey feedback was collected during or after open enrollment, this can help inform future decisions and identify areas for improvement.
General HR Activities
Annual HR housekeeping can help ensure that your organization stays organized and aligned with company goals. Steps like these can support the long-term success of both employees and the company as a whole:
- All annual employee performance reviews should be completed.
- All organizational policies and procedures should be reviewed and updated.
- Employees should be asked to update their personal information, including their home address and contact information.
- Workplace calendars outlining important dates for the next year, such as company holidays, should be created and distributed.
- The organization’s business continuity plan should be created or updated.
- The annual HR organizational budget should be established and reviewed.
- All HR-related metrics and HR processes should be reviewed.
How Higginbotham Can Help
At Higginbotham, we understand that HR responsibilities can be complex. That’s why our HR services are designed to help organizations streamline their processes and support their people.
From employee relations issues to compensation audits, our HR consultants are here to help you navigate the process with confidence.
Connect with a member of Higginbotham’s team today to discover how we can support your HR team with outsourcing or consulting solutions.
