Ensuring compliance before the end of December supports a smooth transition into the new year. Staying current with changing regulations helps avoid legal pitfalls.

An HR compliance checklist helps clarify what to review before the new year begins. Paying attention to the following areas can help set a foundation for success in 2025.

Use this HR compliance checklist so you know what to review before the new year.

Note Deadlines  

Understanding year-end deadlines and preparing relevant documents supports a smooth transition into 2025. Areas to focus on include:

• 2024 adjustments: Pay 2024 bonuses and third-party sick time before January 3, 2025.
• W-2 filing: Provide employees and the Social Security Administration Form W-2s by January 31, 2025.
• Affordable Care Act (ACA) reporting: Provide Form 1095-C to applicable employees by March 1, 2025. File paper Forms 1094-C and 1095-C with the IRS by February 28, 2025, or electronic Forms by March 31, 2025.
• FICA and FUTA forms and payments: If you have any FUTA liability of over $500 for the calendar year, file Form 940 and make a quarterly payment by January 31, 2025. Or, if you filed all FUTA taxes when they were due, the payment deadline is February 10, 2025.

Validate Employee Information

Ask employees to verify their contact and personal information. Focus on the following areas so you can issue accurate W-2s:

• Employee names and social security numbers are listed in the correct format.
• Employee retirement plans are correctly listed in Box 13.
• Correct deferred compensation plans and employee contributions are reported.
• Withholdings are verified and properly made.
• Group term life insurance claims are updated and submitted.
• Deceased employees’ statuses are listed as “Deceased.”

Communicate Paperless Options  

Let employees know where and how they can access year-end documents and updates. Include the benefits of electronically receiving W-2s, such as convenient access and reduced waste.

Review Employee Benefits

Revisit employee benefits and communicate any changes before open enrollment:

• Review health insurance policies, coverage plans, and pricing to decide whether to make changes.
• Prepare open enrollment communications and documents.
• Review ACA provisions such as Employer Shared Responsibility and IRS 2024 Employer Health Plan Affordability.

Review Timekeeping Compliance Requirements

Read Department of Labor (DOL) requirements and the Fair Labor Standards Act (FLSA) for updates and alerts to ensure your timekeeping practices are current and compliant.

Prepare the Final Payroll

Process bonus payments on separate checks before January 3, 2025, to take advantage of tax overrides, auto-payments, and gross-to-net calculations.

Check Tax Rates and Wage Bases

Review current tax rates and create any new wage base limits to start January 1, 2025. Include federal and state employment tax, Medicare, Social Security, and state unemployment taxes.

Distribute Tax Forms

If you use paper tax forms, pay attention to the following dates:

• W-2s, 1099s, and other tax forms must be distributed to employees by January 31, 2025.
• Form W-2s must be filed with the IRS by January 31, 2025.
• ACA Forms 1095-C, 1095-B, and 1094-C must be distributed to employees by March 1, 2025.

Do You Need Help with Compliance?

Understanding compliance deadlines, ensuring accurate information, and submitting year-end documents help create a foundation for success in the new year. A compliance checklist helps determine what to review before the new year begins.

Arlington Resources can provide experienced HR professionals to help ensure compliance before the new year. Find out more today.