HR YEAR-END CHECKLIST

With 2024 quickly coming to a close, it is a very important & busy time for HR professionals. Trinity has prepared this partial year-end checklist as a source of what processes and actions an HR Team may need to review and complete before year-end. Completion is essential in order to finish the year strongly and to ensure compliance with legal requirements that may be applicable to their organization.

1. COMPLIANCE
   • Employee Handbook/Policies Update: Review the employee handbook and/or policies manual to reflect they reflect any changes in company policies, practices, or employment laws.
     • Ensure employees are informed, and confirmation of that is recorded.
   • Labor Law Posters: Verify that labor law posters are up-to-date and compliant with local, state, and federal requirements.
   • Annual Notices: Distribute notices required by laws (e.g., ERISA) to inform employees of their rights related to company-sponsored benefits.
   • Anti-Harassment Training: Confirm that all employees have completed anti-harassment training to meet legal requirements and maintain a respectful workplace.

2. COMPENSATION AND PERFORMANCE MANAGEMENT
   • Performance Appraisals: If there is an annual employee performance appraisal process, manage the process to ensure all appraisals are completed, meetings held with employees & record of same entered into the HRIS.
   • 2025 Goals: Ensure team & individual goals for 2025 align with and support the corporation level strategic initiatives and goals.
   • Pay Reviews: Review year-end pay increases to ensure appropriateness in terms of employee performance and assigned pay range, as well as any issued performance – pay matrix guidelines.
   • Annual Bonus: If your organization is one that pays out performance bonuses at year-end, oversee the process to ensure accuracy and timeliness.
     • Many organizations have moved away from year-end (“Christmas”) bonuses in favor of combination of company & individual employee performance plan.
     • In most cases, these are paid in the first quarter of the new year after complete year-end company performance is known (and in public-traded companies, audited).
   • Employee Classification: Conduct a review to confirm employees are properly classified (e.g., exempt vs. non-exempt) to avoid wage-and-hour violations.
     • On November 15, 2024, Phase 2 of the Dept of Labor’s Overtime Rule scheduled to go into effect on 1-1-2025, was halted by a U.S. District Court in Texas.
     • Despite this pro-employer court decision, misclassification of positions as “exempt” will remain a reason for employers being found not to be in compliance and be penalized.

3. BENEFITS
   • Non-Discrimination Testing: Employers must conduct non-discrimination testing by the last day of the plan year or December 31^st for calendar year plans.
   • Annual Compliance Notices: Each year, employers are required to distribute certain compliance notices to employees. Examples include:
     • Summary of Benefits and Coverage to all group health plan applicants and enrollees.
     • Women’s Health and Cancer Rights Act Notice provided upon enrollment and annually thereafter to inform employees of the availability of coverage for reconstructive surgery following a mastectomy.
   • FSA Covered Expenses:  Reminder to employees to submit receipts for covered expenses by December 31, 2024. In certain instances, this date is extended, which, in turn, is to be communicated to employees.
   • Prepare for 2025 ACA Threshold Increase: The ACA threshold requirement for employer health coverage will increase to 9.02% which applies to the plan year – not calendar year.
   • Prepare for Secure 2.0 Auto- Enrollments: Applicable employers should prepare for the mandatory 401(k) auto-enrollment requirement for new hires beginning Jan. 1, 2025.

4. TALENT RECRUITMENT AND ACQUISITION
   • Recruitment Process Review: Evaluate the effectiveness of recruiting strategies and onboarding processes, aiming for improvements where needed.
   • Review 2025 Budgeted Staffing Requirements: Recruiting efforts for newly authorized positions should already be underway for those to start in January, as well as for those in February known to be “hard to find & hire”.
   • Job Description Updates: Ensure Position Descriptions reflect current roles and responsibilities, including bona fide education, experience, competencies and attributes.
   • Succession Planning: Review and update succession plans to prepare for internal growth or unexpected vacancies.

5. PAYROLL MANAGEMENT (included for those HR Teams having this responsibility as opposed to in Finance, where many external auditors prefer for it to reside.)
   • Year-End Payroll: Verify all payroll information is accurate, including bonuses, commissions, and corrections.
   • W-2s and 1099s: Prepare and ensure timely distribution of W-2s and 1099s as a critical part of year-end

Author: Salvatore LoDico, The HR Godfather ^TM 

  CEO, Trinity HR Consulting, Inc