To wrap up the year successfully, it’s essential for employers to complete critical compliance tasks across payroll, ACA reporting, employee benefits, and tax preparation. This checklist covers key areas to ensure a smooth transition into the new year.
1. Payroll Tasks
☐ Review Payroll Records
Verify that all employee information (names, addresses, SSNs) is current.
Ensure accurate record-keeping of employee earnings, bonuses, deductions, and benefits.
☐ Distribute W-2s and 1099s
Prepare and distribute W-2 forms to employees by January 31.
Send 1099-NEC forms to independent contractors if they were paid $600 or more.
☐ Address Any Outstanding Payroll Adjustments
Correct any payroll errors or adjustments needed for missed or incorrect pay periods.
Ensure final paychecks reflect accurate year-to-date earnings and deductions.
☐ Verify Paid Time Off (PTO) Balances
Confirm employees' PTO, vacation, and sick leave balances are accurate.
Process carryovers or forfeitures based on company policy.
☐ Prepare for Minimum Wage Increases (if applicable)
Check state/local minimum wage requirements for any increases effective January 1, and adjust payroll as needed.
2. Affordable Care Act (ACA) Compliance
☐ Prepare ACA Reporting Forms
Complete Forms 1094-C (employer transmittal) and 1095-C (individual statements) for employees covered by the ACA.
Submit Forms 1095-C to eligible employees by January 31 and file with the IRS by February 28 (paper) or March 31 (electronic).
☐ Verify Employee Eligibility and Coverage
Ensure that all full-time employees (30+ hours/week) have been offered compliant health insurance coverage to avoid ACA penalties.
Double-check coverage dates for any mid-year hires or terminations.
☐ Non-Discrimination Testing for Health Plans (if applicable)
Perform non-discrimination testing on health plans to ensure they do not disproportionately favor highly compensated employees (for self-insured or Section 125 plans).
3. Employee Benefits and Retirement Plans
☐ Review Health and Welfare Benefits Renewals
Confirm that new plan year details and benefits premiums have been communicated to employees.
Ensure updates to health insurance, dental, vision, and other benefits are reflected accurately in payroll deductions.
☐ Confirm Compliance with COBRA Requirements
Confirm that eligible former employees and their dependents have been offered COBRA continuation coverage and are informed of their rights.
☐ Annual Retirement Plan Contributions and Testing
Ensure that retirement plan contributions (401(k), 403(b), etc.) for employees are processed and documented.
Conduct annual compliance testing (e.g., ADP, ACP, top-heavy testing) for 401(k) plans to ensure the plan does not disproportionately benefit highly compensated employees.
☐ Plan Ahead for Required Minimum Distributions (RMDs)
Ensure RMDs are processed for eligible employees and retirees in compliance with IRS requirements, particularly for retirement plans with participants aged 73+.
4. Tax Preparation
☐ Verify Federal, State, and Local Tax Withholdings
Review employee withholding and make adjustments for any 2024 tax law updates.
Confirm payroll systems are set up for new state or local tax changes starting January 1.
☐ Calculate and Pay Q4 Employment Taxes
Submit federal tax deposits for Q4, including FICA and FUTA.
Prepare to file Form 941 (Employer’s Quarterly Federal Tax Return) by January 31 and reconcile with year-end Form W-2 totals.
☐ Review Year-End Tax Filings Deadlines
Form 940 (FUTA) – Due January 31.
Form 944 (Annual Federal Tax Return for smaller employers) – Due January 31 if eligible.
5. Review Employee Records and Compliance
☐ Conduct a Form I-9 Audit
Review employee I-9 forms to ensure accurate completion, and resolve any discrepancies.
Update any expiring work authorization documents for non-U.S. citizen employees.
☐ OSHA and Safety Reporting (if applicable)
Complete and post OSHA Form 300A (Summary of Work-Related Injuries and Illnesses) in workplaces by February 1 if your organization meets OSHA reporting criteria.
☐ Update Employee Handbook and Policies
Review the employee handbook and update it for any new labor laws, company policies, or benefits changes effective in 2024.
Re-communicate policies to employees, including any updates to remote work, overtime, or PTO policies.
6. Plan for the New Year
☐ Conduct Annual Employee Reviews (if applicable)
Schedule and conduct performance reviews to set goals for 2024 and discuss professional development.
Align annual pay raises, bonuses, and promotions with review outcomes.
☐ Prepare for 2024 ACA Open Enrollment Strategy
Analyze this year’s open enrollment data and feedback for improvements.
Begin planning benefits strategy and changes based on ACA compliance updates for the new year.
☐ Set Up Compliance Training for Employees and Managers
Schedule or assign training on compliance topics like anti-harassment, data privacy, cybersecurity, and safety standards.
☐ Plan for New State and Federal Compliance Requirements
Identify any new employment laws effective in 2024 (e.g., state family leave, pay transparency) and update policies accordingly.
Using this checklist will help ensure your company meets compliance obligations, maintains accurate records, and positions itself for a productive year ahead. Regularly reviewing and adjusting these items throughout the year can further streamline next year’s end-of-year tasks.
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