Small Business Year-End HR Checklist

A small business year-end HR checklist can help you finish the year strong and prepare for the new year ahead.  

The last quarter of the year always seems to be the busiest. The overlap of year-end tasks with the holiday season causes to-do lists to multiply, especially for small businesses. ‘Tis the season to be jolly feels more like ’tis the season for paperwork and can turn any small business owner into a Grinch.  

If you’re feeling overwhelmed with your year-end HR to-do list, don’t fret. Use this small business year-end HR checklist as a guide to help you stay on track and get ahead for next year. 

Payroll, Taxes, and Benefits

• If you process your own payroll, you will need to update and issue tax forms including, but not limited to, W-2s, 1099s, and 1095-C, if applicable to your small business. You will also need to prepare FICA and FUTA forms (payroll tax and unemployment forms).
• If you have your own PEO, they will take care of the above items for you. You’ll just need to make sure that you update your employee records with them for accurate W2 delivery.
• Distribute bonuses, if applicable to your small business.
• Establish next year’s payroll schedule.
• Review employees’ classifications, as well as their wage, tax, and withholding information.
• Remind employees to use their FSA funds before year-end.
• Review employees’ PTO. Remind them to schedule any of their “use it or lose it” leave and ensure their remaining PTO is carried over to next year, if applicable to your small business.
• Review your benefits package to see if any adjustments are needed.

Compliance

• Review employee classifications to ensure accuracy.
• Ensure employees are up-to-date on any mandatory trainings. Schedule trainings if necessary.
• Audit your employment and labor law posters to ensure the correct ones are posted.
• Distribute the appropriate annual notices to employees.
• Review your job descriptions, posting, and interview questions to ensure they are compliant with state and federal laws.

General HR Housekeeping

• Complete year-end performance reviews. If your business performs annual reviews, be sure to schedule them now, especially if bonuses or raises are contingent upon them.
• Ask for vacation/time-off requests. The holiday season is often full of employee time-off requests. Ask employees to submit their time-off requests for the rest of the year now. This will allow you to properly plan schedules and ensure you have the needed coverage for your business to remain operational.
• Send out next year’s holiday calendar.
• Review and update your policies and procedures. Take a look at your employee handbook, hiring and firing processes, and other HR-related manuals to see if any updates are needed.
• Organize your files. Move terminated employee files to storage, and file other personnel paperwork accordingly. Be sure to follow the appropriate record retention requirements.

Do you need help with your small business year-end HR checklist? Then consider a professional employer organization, like Convergence Employee Leasing. At Convergence Employee Leasing, we want to help you build a successful small business. We provide small businesses with cost-effective, state-of-the-art payroll processing solutions, including – paycheck processing, payroll tax processing and payment, and workers’ comp coverage and claims management. Contact our team today to find out how we can help you cross off some of the items on your small business year-end HR checklist and set you up for success in the year ahead. 

Please note: The year-end HR needs of each business differ, and laws and regulations are constantly changing. This small business year-end HR checklist is meant to be a general starting point. You should always consult with a professional (such as your professional employer organization) to determine your specific year-end responsibilities.