With year-end approaching, it’s the perfect time to give your HR processes a refresh and set yourself up for success in the new year. We’ve curated the Top 10 Year-End HR Tasks that will not only keep your company compliant but also boost your team’s engagement, performance, and growth. Let’s make sure your organization is ready to hit the ground running in 2025!
- Employee Benefits Review
If not already completed, make sure benefits selections are finalized, and all employees are informed of their options for the upcoming year. Ensure the company’s health insurance offerings comply with the latest legal requirements and adjust the benefits package if necessary.
Review 401(k) or other retirement plans for updates such as increased contribution limits or new employer match options. - Compliance Posters: Stay Updated, Stay Compliant
Time to audit those federal and state compliance posters! It’s crucial to ensure all posters are up-to-date and displayed prominently in your workplace and/or provided electronically. Visit the U.S. Department of Labor and your state agency websites, or partner with a labor poster vendor to get this done.
Some posters, like those related to Unemployment Insurance or Paid Family Leave, need to be obtained from your state’s agencies—so don’t overlook these details! - Handbook Overhaul: Prepare for 2025
Your employee handbook is the backbone of your workplace policies. The new year is a great time to review employee handbooks, ensuring policies comply with updated laws, regulations, and industry best practices. Key areas to focus on include:
– Leave policies (e.g., family and medical leave and sick leave)
– Anti-harassment and discrimination policies
– Workplace safety standards
– New state or federal laws that impact wages or benefits
Stay informed about new or pending legislation that may impact your HR policies. For example, wage transparency, overtime exemptions, and workplace accommodations for disabilities and pregnancy-related conditions could all require updates. - I-9 Maintenance: Shred What’s Shred-Worthy
Don’t let outdated I-9s clutter your files! Remove I-9 forms of terminated employees from active files and shred those no longer required by law. Remember: I-9s must be kept for three years after hire or one year after separation—whichever is longer. - IRS Updates and Payroll Preparation Tax
Year-end means it’s time to prep those W-2 forms for your team. Also, ensure you have the latest federal and state tax withholding forms in place for 2025. This step ensures your employees’ tax information is accurate and ready to go.
Check for updates to IRS mileage rates, retirement plan contribution limits, and other payroll requirements to ensure compliance.
Notably, the IRS has not yet released the standard mileage rates for 2025; however, the rates are typically updated in December for the following year. Be sure to stay on top of any updates. Remember, this is a recommendation, not a requirement, but some states have their own business reimbursement rules, so check your state laws. - Minimum Wage Adjustments and Salary Level Adjustments
Review any wage increases scheduled for January 1 and ensure that employees classified as exempt meet the new minimum and required salary thresholds. For non-exempt employees, make sure you’re up to speed on any state or local minimum wage increases for 2025. Adjust your pay rates accordingly, and don’t forget to post the updated minimum wage posters when they become available.
Starting January 1, 2025, the U.S. Department of Labor will increase the federal salary threshold for exempt employees to $1,128 per week, or $58,656 annually. States like California and New York may also increase salary threshold increases for exempt employees. Review your exempt employees’ salaries and adjust them where needed to stay compliant with these new minimums. - Prepare for Leave Law Changes
January 1st often brings new or updated leave laws. Don’t let your leave administration policies fall behind! Review and update your leave policies and processes to reflect any changes in state or local law that kick in on the first of the year. - Compensation Audits: Competitive Pay, Happy Employees
With pay transparency and wage disclosure laws continuing to sweep across the nation, it is important to stay competitive. Conduct compensation audits to ensure your pay ranges are fair, market-competitive, and compliant with any wage disclosure requirements. - Plan for Talent Acquisition and Workforce Development
Start the year with a recruitment strategy that aligns with business goals. Focus on attracting top talent by promoting new job openings with clear salary ranges and benefits, in line with pay transparency laws.
Ensure that all legally required annual training has been completed and that your training programs are ready to launch in the new year, focusing on compliance (e.g., harassment training), as well as professional development. - Employee Engagement and Performance Reviews
Organize year-end performance reviews, celebrate employee achievements, and set new goals for the upcoming year.
Plan employee engagement initiatives for the year, like wellness programs, employee recognition strategies, or team-building activities.
Next Steps
It is recommended that HR professionals conduct a thorough audit of their compliance practices, ensuring that they are consistent with federal, state, and local laws and that they are up to date on recommended best practices. This includes any recent changes in minimum wage, safety regulations, and mandatory notices. Regularly reviewing these requirements helps to avoid penalties.
HR Works Can Help
HR Works offers a range of comprehensive services to help you stay compliant, including:
- Employee Handbooks: We help create policies that comply with federal and state laws or legally update your existing handbook.
- HR Assessments: We evaluate your HR policies and practices to identify gaps and recommend improvements.
- Customized Training Programs: We offer tailored supervisory training, workplace harassment and discrimination training, and training on conducting investigations for your organization.
- Benefits and Leave Administration: We offer support and guidance to execute the administration of employee benefits and leave.
- And Much More!
Current Virtual Helpline clients may contact the Virtual Helpline for additional information and HR Strategic Services clients may contact their dedicated HR Consultant for additional information. Not an HR Works client? To learn more about how HR Works can help you, contact us by visiting our website and completing a “Contact Us” form or calling us toll-free at 1-877-219-9062.
