Compliance Corner: 10 Tips for Wrapping Up the Year with Confidence

As we approach the end of the year, human resources (HR) professionals have an opportunity to fine-tune operations, confirm compliance and set the foundation for a successful new year. Whether it's updating records, preparing for legislative changes or auditing safety protocols, here are 10 essential year-end tips from the tenured HR pros of isolved’s HR Services team.

1. Wrap Up Employee Records

Maintaining accurate employee records is a legal requirement under several federal laws, including the Fair Labor Standards Act (FLSA) and Equal Employment Opportunity (EEO) regulations. Prepare for year-end by conducting an audit of Form I-9, benefits paperwork and training certifications.

2. Refresh Your Employee Handbook

Your employee handbook is not just a guide, it's a legal document. Year-end is the perfect time to review and update your employee handbook to reflect any changes in company policies and align compliance with recent legal updates.

3. Review Wage and Hour Practices

Wage and hour violations are among the most common compliance issues and can lead to significant penalties. You can avoid potential penalties by reviewing your wage and hour practices to confirm that they align with both federal and state regulations.

4. Prepare for Year-End Tax and Benefits Reporting

Tax-related responsibilities increase at the end of the year. From issuing Form W-2s to ensuring accurate reporting of benefits and payroll taxes, preparing early can save you from costly errors. Ensuring this is done accurately and on time is crucial for compliance and avoiding penalties.

5. Encourage Year-End Employee Benefits Review

With benefits enrollment wrapped up, now is the time to check that all employees are informed of their benefits and that everything is properly recorded. Conduct a year-end review of employee benefits, including health care, retirement plans and other perks to maintain compliance with Employee Retirement Income Security Act (ERISA) and Consolidated Omnibus Budget Reconciliation Act (COBRA) regulations.

6. Put Final Touches on EEO-1 Reporting

If your company is subject to EEO-1 reporting requirements, it's important to confirm that the data accurately reflects your workforce demographics. Verify that your organization remains compliant by carefully reviewing your EEO-1 data before submission.

7. Audit Workplace Safety Practices

Safety should remain a top priority for your organization, regardless of the industry. Whether your employees work outdoors in hazardous environments or in-office settings, following Occupational Safety and Health Administration (OSHA) compliance is crucial.

8. Plan for Upcoming State and Federal Law Changes

Staying ahead of new regulations is essential for maintaining compliance. With several federal and state laws set to take effect in 2025, now is the time to prepare. Start by planning for upcoming federal changes, such as potential updates to the Fair Labor Standards Act (FLSA) and the introduction of a federal Paid Family and Medical Leave (PFML) program.

9. Close the Year with Transparency

Close the year with transparency and clear communication with your employees. Use this time to align the team on performance, challenges and the company’s direction for 2025.

10. Prepare for Year-End Employee Reviews

Year-end performance reviews are an excellent opportunity to evaluate efficacy, set new goals and provide feedback. These reviews are not only a key component of performance management but also serve as a valuable compliance tool, affirming all performance-related documentation is accurate and up to date. Start scheduling reviews early to provide ample time for thorough discussions with each employee.

As the year ends, these tips can help your HR team meet compliance requirements, processes are updated and employees are prepared to start the year off strong.

Need assistance to make sure you’re covered? isolved HR Services is here to help.