As 2024 draws to a close, it’s crucial to take the necessary steps to ensure your organization meets all filing deadlines and starts 2025 on a strong note. To achieve this, you’ll need to follow a well-organized year-end HR checklist for payroll, tax, and benefits activities. This approach not only helps you stay compliant with IRS regulations and labor laws; it can also help you avoid errors and delays in your employees’ pay and benefits.
Take the following actions to ensure your HR department stays compliant and prepared for a successful 2025:
Critical HR Activities for December 2024
Employee reminders: Remind employees to check their addresses, W-2 delivery options, and 2024 tax deductions. They should also review their planned 2025 401(k) contributions.
Contractor payment filings: Verify contractor payments made in 2024, and prepare to report them on IRS Form 1099-NEC before the January 31, 2025 deadline.
Year-end employee payroll: Process year-end bonuses, commissions, and other payments to ensure the proper tax treatment. Verify the accuracy of payroll records and make any necessary corrections to avoid tax filing adjustment fees in 2025.
Benefits administration: Finalize 2024 employee health savings account (HSA) contributions so they may be reflected accurately on IRS Form 5498-SA (must be filed by June 2, 2025). Also, confirm the amounts of taxable employee payments in 2024 that may be reported on Form W-2, such as third-party disability payments, employer-paid health insurance, group life insurance premiums, and dependent care benefits.
Labor law posters: With several updates to federal and state labor laws coming in 2025, place your order for updated labor law posters and display them in each workplace.
Employee handbook: Update your HR policies to reflect changes for the following year, and create a plan to communicate updates to employees. Key changes may include updates to your company holiday schedule, time-off policies, and employee health and wellness benefits.
Looking Ahead: Can’t-Miss HR Deadlines For January 2025
By verifying your payroll and tax records in December, you’ll be well-prepared to meet these key HR-related filing and reporting deadlines:
- Final payroll adjustments: Make all remaining 2024 payroll adjustments by January 3.
- W-2 and 1099 filings: By January 31, provide contractors with 1099s, provide W-2 forms to employees, and file W-2s with the Social Security Administration.
- Unemployment tax filing: File the annual federal unemployment tax return on IRS Form 940 by January 31. Note: employers may file Form 940 by February 10 if all 2024 FUTA tax was deposited when due.
January is also an excellent time to focus on non-compliance-related HR activities. Consider taking these additional actions at the start of the new year:
- Confirm all managers have completed year-end performance reviews for their team
- Begin the annual goal-setting process
- Survey employees and ask for feedback about their experiences in the last year
Partner with Aspen HR for a Seamless Year-End Transition
As you wrap up 2024, following a detailed year-end HR checklist will help you meet important deadlines and avoid errors that could cost time and money to correct. Additionally, being prepared for the upcoming year sets a positive tone for your business and employees, helping you create an environment where everyone is focused and ready to tackle the goals of 2025.
If you want to ensure you’ve covered all your bases and are ready to submit all payroll, tax, and benefits filings on time, Aspen HR can help. Our extensive suite of PEO services—including benefits administration, payroll, HR compliance, and more—is here to help your business and HR operations run more smoothly at year-end and year-round. To learn more, speak to a member of our team.
