HR Year-End Checklist: 10 Critical Areas to Assess
Quick look: As 2024 comes to a close, it’s time for HR professionals to review, reflect, and fine-tune their processes to ensure compliance, enhance employee satisfaction, and streamline operations. Explore key year-end tasks to finish the year on a high note and set a strong foundation for 2025, or download the full, printable checklist for easy planning!
The end of the year is a busy time for business leaders, professionally and personally. There are holiday celebrations to prepare for and attend, looming work deadlines, and your staff’s time off to track and plan around.
Additionally, human resources (HR) teams must tackle a variety of tasks to maintain compliance and streamline operations for the year ahead.
To support them, we’ve developed a comprehensive HR end-of-year checklist outlining critical to-dos in the following 10 categories:
- Compliance and legal updates
- Employee records
- Payroll
- Employee benefits and compensation
- Performance management
- Financial planning
- Strategic planning
- Employee engagement and culture
- Administrative tasks
- Miscellaneous
Below, explore two major HR activities from each category, or download the free, complete, printable checklist including all tasks:
Get Full Checklist1. Compliance and legal updates
Reviewing and adjusting for evolving employment laws is one of the most important end-of-year HR responsibilities. Doing so enables organizations to safeguard against legal challenges, create a supportive work environment, and maintain operational efficiency.
Two critical tasks:
✓ Review legal and regulatory changes: Ensure compliance with any new labor laws or industry-specific requirements.
✓ Acquire labor law posters: Confirm you have all required posters for 2025 and display them in common areas to keep employees informed of their rights and workplace policies.
Disclaimer: The laws listed above and in the downloadable checklist are not an exhaustive list. Please refer to your regional and industry-specific legal guidelines or consult your legal counsel for detailed and specific information.
2. Employee records
Updating and maintaining current employee records is more than just a housekeeping routine—it’s a foundational practice that supports payroll accuracy and helps your company avoid potential litigation.
Two critical tasks:
✓ Update employee information: Keep all employee records current, including contact details, emergency contacts, and personal information.
✓ Archive old records: Securely store or dispose of records in accordance with data retention policies and legal requirements.
3. Payroll
Closing your business’s books at the end of the year is imperative. Confirming accurate payroll data and completing necessary forms ensures compliance with legal requirements, maintains financial precision, and cultivates trust between your organization and its employees.
Two critical tasks:
✓ Verify year-end payroll: Confirm all payroll information is accurate, including bonuses, commissions, and corrections.
✓ Complete and distribute required forms:
- Complete W-3: Prepare and submit to the IRS by the deadline.
- Distribute W-2 and 1099: Prepare and send out all necessary tax documents.
- File FICA/FUTA: If applicable, submit forms by the IRS deadlines.
4. Employee benefits and compensation
Managing employee benefits and compensation involves multiple processes to ensure your organization stays compliant, controls costs effectively, and promotes the health and well-being of your workforce.
Two critical tasks:
✓ Review benefits enrollment: Make sure changes in employee benefits for the new year are processed correctly.
✓ Affordable Care Act (ACA) reporting: If applicable, provide workers with Form 1095-C and file Forms 1094-C and 1095-C to the IRS.
5. Performance management
As the year winds down, it’s the perfect time to prioritize performance management. Completing year-end performance reviews and setting future goals fosters growth, engagement, and alignment within a company. This focus on performance drives results and promotes a collaborative and forward-looking work environment.
Two critical tasks:
✓ Year-end performance reviews: Schedule and perform performance evaluations for all employees.
✓ Set goals for the next year: Collaborate with staff to set goals and objectives for the upcoming year.
6. Financial planning
Data tells a story, and annually reviewing your HR budget and performance metrics is essential for ensuring the efficient use of resources, improving workforce strategies, and aligning HR initiatives with business objectives.
Two critical tasks:
✓ Budget review and planning: Assess the current year’s budget and plan for the following year’s HR budget, including salaries, benefits, and other expenses.
✓ Analyze HR metrics: Review key performance indicators such as turnover rates, hiring statistics, and employee satisfaction scores.
7. Strategic planning
The final months of the year are a great time to pause and plan for potential future business dynamics. Strategic planning initiatives like workforce and succession planning ensure that your business is ready for growth, leadership changes, and shifting market demands while fostering employee development and retention.
By prioritizing these planning efforts, organizations can secure a competitive advantage and maintain continuity in an ever-evolving business environment.
Two critical tasks:
✓ Review workforce planning: Analyze current staffing levels and plan for future hiring needs.
✓ Succession planning: Identify key roles and potential internal candidates for future leadership positions.
8. Employee engagement and culture
Company culture is a hot topic, and for good reason. Gallup reports that workers who feel connected to their organization’s culture are four times as engaged, nearly six times more likely to agree their company is a great place to work, and 43% less likely to be actively or passively job hunting. The last part of the year is pivotal for building this morale; it’s a natural time to host team-building and employee recognition events, conduct annual feedback surveys, and more.
Two critical tasks:
✓ Plan employee recognition programs: Prepare for any year-end awards, bonuses, or recognition events.
✓ Conduct employee surveys: Gather feedback on employee satisfaction and potential areas for improvement.
9. Administrative tasks
Regularly reviewing your organization’s HR systems, software, and vendor contracts is essential for staying competitive, reducing costs, and mitigating risks. This proactive approach ensures your team is equipped with effective tools, maintains productive vendor relationships, and can pivot during future challenges and opportunities.
Two critical tasks:
✓ Update HR software and systems: Check that all your HR systems and software are up to date.
✓ Review vendor contracts: Evaluate your current HR vendors and contracts and renew or renegotiate as necessary.
10. Miscellaneous
Some tasks, like audit preparation and scheduling key dates, are broader and can fall under multiple categories depending on your business’s structure and operations.
Two critical tasks:
✓ Schedule important dates: Plan and communicate significant dates for the upcoming year, including holidays and performance review cycles.
✓ Prepare for annual audits: Gather and organize documents for any upcoming internal or external audits.
Partnering with a PEO: from “to-do” to “done”
You aren’t alone if your end-of-year HR responsibilities are stressing you out more than the holiday shopping you still need to do. In fact, these tasks are just one reason why many small businesses partner with a professional employer organization (PEO).
PEOs are a type of HR outsourcing provider that help small- and medium-sized businesses (SMBs) manage their HR, employee benefits, payroll, and risk management.
And while many PEOs offer similar services, what sets some apart from others is their level of customer support. For example, when you partner with ExtensisHR, you gain access to a team of HR professionals dedicated to helping your business run smoothly and successfully, and a responsive team committed to your satisfaction every step of the way.
Curious about how a PEO can help at the end of the year and beyond? Learn more about ExtensisHR’s PEO solution, or contact our team today to start a conversation.
Download your 2024 end-of-year HR checklist
Access a free, printable checklist featuring dozens of important to-do items, designed to help you start off 2025 strong.
