As the year comes to a close, businesses must focus on essential employee maintenance tasks to ensure compliance and prepare for a smooth transition into the new year. Taking time to review key areas like payroll, benefits, and employee records helps prevent errors, foster a positive workplace culture, and set the stage for a successful 2025. Below is a comprehensive guide to help you tackle year-end employee management.
Review Employee Records
Accurate employee records are crucial for maintaining compliance and efficiency. Take time to review and update key details such as contact information, emergency contacts, tax forms, job titles, and pay rates. Ensure records for any new hires or terminations during the year are properly documented. Staying on top of these updates minimizes errors, streamlines payroll and benefits processes, and ensures you’re ready for tax season.
Verify Payroll and Benefits Data
Year-end payroll processing is critical to avoid discrepancies and ensure compliance with tax regulations. Carefully review payroll entries to confirm the accuracy of bonuses, overtime, and holiday pay. Check that tax deductions and withholdings align with local, state, and federal laws. Similarly, verify benefits deductions like retirement contributions or health savings accounts (HSAs) are correctly recorded. These steps help ensure error-free tax reporting and avoid complications when preparing W-2s or other tax forms.
Communicate PTO Balances
As the year wraps up, communicate remaining paid time off (PTO) balances to your employees. Clarify policies regarding carryovers or payouts of unused PTO to avoid confusion. Giving employees sufficient time to use their remaining leave fosters a healthy work-life balance, boosts morale, and reduces the risk of year-end burnout. A clear PTO policy helps employees feel supported and valued, even during the busiest time of year.
Download our free PTO Policy Scorecard here.
Conduct Year-End Performance Reviews
The end of the year is the perfect time to conduct performance reviews. Schedule one-on-one meetings with employees to reflect on their accomplishments and discuss areas for improvement. Use this opportunity to set goals for 2025, provide constructive feedback, and recognize their contributions. Performance reviews not only guide professional development but also strengthen the employee-manager relationship, increasing engagement and satisfaction.
Finalize Open Enrollment Updates
If your company recently completed open enrollment, ensure all updates are finalized. Double-check that new benefits elections are properly recorded and communicate any changes to employees. Distribute updated benefits materials, such as health insurance cards or retirement contribution details, to ensure employees are prepared for the upcoming year. Clear and timely communication during this process builds trust and helps employees fully understand their benefits.
Address Compliance Requirements
Compliance is a key focus at the end of the year. Review and update employee handbooks to align with the latest labor laws, including wage updates, overtime requirements, and discrimination policies. Confirm that tax forms like W-2s and 1099s are prepared and scheduled for timely distribution. Staying ahead of compliance requirements minimizes risks and sets the tone for a legally sound start to 2025.
Download our free Compliance Outlook e-guide here.
Celebrate Employee Contributions
The holiday season is an ideal time to recognize your team’s hard work and dedication. Whether through an end-of-year party, performance bonuses, or personalized thank-you notes, showing appreciation boosts morale and fosters a positive workplace culture. Employees who feel valued are more likely to remain engaged and motivated as the new year begins.
Plan for Professional Development in 2024
Investing in professional development is a great way to start the new year on the right foot. Identify training or upskilling opportunities that align with your employees’ roles and goals. Offering mentorship programs, online courses, or workshops shows your commitment to their growth and development. A focus on learning and development not only enhances employee satisfaction but also strengthens your workforce for the challenges ahead.
Download our free e-guide to Upskilling here.
How Tilson Can Help
Year-end tasks can feel overwhelming, but Tilson is here to simplify the process. We provide comprehensive HR support to ensure your business stays compliant, organized, and ready for 2024. From managing payroll and benefits to navigating the complexities of compliance, Tilson helps small and mid-sized businesses focus on what matters most: growth and success. Let us partner with you to make this year-end seamless and set your business up for an even brighter future. Reach out today to learn how Tilson can support your team.
