10 Critical To-Do's on Your HR End of Year Checklist

1. Note important dates and deadlines, and prepare necessary forms

While many employees mark the end of the year by using up remaining PTO, it’s the busiest time of year for HR. Prepare for a smoother season with these key dates:

• Your deadline for all 2022 adjustments is Tuesday, January 3, 2023. This year, January 2 is a federal holiday, so be sure to pay 2022 bonuses and third-party sick time before the deadline.
• Filing W-2s: Employers must provide Forms W-2 to employees and the Social Security Administration by January 31, 2023.
• Affordable Care Act (ACA) reporting: By March 2, 2023, applicable large employers must furnish Forms 1095-C to applicable employees. Employers must file paper Forms 1094-C and 1095-C with the IRS by February 28, 2023, or March 31, 2023, if filing electronically.
• EEO-1 reporting: Certain employers must report demographic workforce data, including data by race/ethnicity, sex and job categories; data collection begins on January 1, 2023.
• FICA and FUTA forms: The IRS requires employers with Federal Unemployment Tax Act (FUTA) tax liability of more than $500 for the calendar year to deposit at least one quarterly payment. The due date for filing the Form 940 is January 31, 2023. However, if you deposited all FUTA tax when due, you have until February 10, 2023 to file. Note: If the due date for filing falls on a weekend or legal holiday, you can file the return on the next business day.

2. Validate employee personal and contact information

Whether an employee has moved, gotten married or divorced, or had a baby, their circumstances may be different than a year ago. Ensure employees receive their W-2s by encouraging them to log in and make necessary updates to their address, email address, and more.

Top things to review:

• Verify employee names and social security numbers are in the correct format.
• Confirm employee retirement plans are correctly listed on Box 13 of Form W-2s.
• Ensure any deceased employees’ status is Deceased.
• Confirm any deferred compensation plans are correct and verify employee contributions.
• Update and submit any Group Term Life Insurance claims.
• Verify withholdings are made properly.

3. Communicate paperless options

Keep employees in the loop and proactively communicate updates, such as when and how to access year-end documents. Send an announcement via Community and ensure your employees—even those without a company computer or email—receive necessary information and a consistent experience. Share the benefits of receiving W-2s electronically, such as instant and convenient ongoing access and less waste.

4. Review benefits and prepare for open enrollment

Have things changed over the past year? Open enrollment can be a great time to revisit plans and communicate accordingly.

• Review coverage plans, pricing, and health insurance policies to determine if changes are needed.
• Prepare open enrollment communications and documents.
• Review Affordable Care Act (ACA) provisions such as Employer Shared Responsibility, and IRS 2022 Employer Health Plan Affordability.

5. Review compliance requirements

Review the Department of Labor (DOL) requirements and the Fair Labor Standards Act (FLSA) for any federal updates to help ensure your timekeeping practices are current and compliant. Head over to the alerts page for the latest compliance updates.

6. Prepare final payroll

Be sure to process all bonus payments on a separate check to take full advantage of tax overrides, auto-payments, gross-to-net calculations and more. Download the 2023 Payroll calendar to start off the new year right. This year’s deadline for prior year adjustment is January 3, 2023, so be sure to pay any 2022 bonuses before the deadline.

7. Check tax rates and wage bases

Review current tax rates and be sure to set all new wage limits to take effect on January 1, including federal and state unemployment tax, Medicare, Social Security, and state employment taxes.

8. Distribute tax forms if not paperless

• January 31, 2023 : Tax forms such as W-2s and 1099s must be distributed to employees, if they have not opted for paperless forms.
• January 31, 2023: Employers must file all Forms W-2 to IRS.
• March 2, 2023: ACA Forms 1095-C, 1095-B, and 1094-C are due to employees.

9. Update employee handbook and policies

Has any paid time off changed due to legislation? What about compensation and benefits? Take an annual review of your employee handbook and update any policies for the coming year. Post and share with employees using a social collaboration tool such as Community, or make it a course in your learning management system to track readership. Gamify the experience by creating a scavenger hunt or asking a poll about the updates.

10. Evaluate and ask for feedback

Send a survey to gather feedback on what worked and what didn’t. For example, did your employees have the information they needed in time to enroll in benefits? Chat with stakeholders, senior leaders, and employees to gain 360-feedback. Adjust your plans accordingly for the following year.

For more helpful tips on this busy time of year, check out this Year-End Survival Guide. Level up with tips designed to help your organization deliver an improved employee experience, enhance communication, enforce compliance, and more.