Last Updated on October 10, 2024

It’s the end of the year and having a year-end HR compliance checklist is a crucial tool to ensure that your organization is meeting all legal and regulatory requirements related to human resources. Below is a checklist that covers various HR compliance areas for the end of the year.

Employment Records and Documentation

Make sure you have up-to-date information on your employees:

• Review and update employee files, ensuring all required documents are up-to-date.
• Ensure I-9 Forms (and E-Verify if applicable) are completed and up-to-date.
• Update employee address to ensure they receive year-end forms (such as the W2 and 1095 forms) in a timely manner.
• Review personnel files for compliance with confidentiality and data protection regulations.
• Ensure employees are properly classified as active/terminate. Failure to do so can lead to incorrect 1095 forms and other reporting errors.

According to Emily Frederick, SHRM-CP, Sr HR Consultant at MyHRConcierge, verifying the accuracy of an employee’s I-9 Form, otherwise known as an Employment Eligibility Verification form, is crucial: “I-9’s are things that are easy to consider out-of-sight, out-of-mind. They go into their own file folder and are set away; you only look at them when you hire somebody new. It’s important to consider them, go through the I-9 folder and shred any old ones to reduce your (organization’s) storage capacity.”

It is important to note that an I-9 form can be destroyed either one year after the employee’s termination date or three years after an employee’s date of hire, whichever is longer for an employee who is no longer with the company. Anybody who is still actively employed does need to have an accurate I-9 on file.

Employee Handbook

The end of the year is a great time to ensure your employee handbook is up-to-date with the ever-changing federal and state regulations:

• Have your employee handbook assessed. Is it up-to-date?
  • Does your employee handbook reflect changes to your state-specific laws?
  • Determine compliance with state and federal leave laws.
  • Assess all vulnerable areas within your employment practices to ensure legal compliance.
  • Implement an ongoing handbook monitoring practice to avoid being caught off guard by changes to relevant laws and policies.
• Ensure all employees have received a copy of the current handbook and have acknowledged its receipt.

Frederick noted that handbooks should also be updated to reflect any organizational policies that might have changed throughout the year. Frederick also recommended that employers update their employee handbooks annually, to ensure organizations are staying abreast.

Employee Benefits

Many Group Plans renew on January 1, so it is important to review your Group Health Plan to ensure no changes need to be made.

Employee Open Enrollment

• Finalize your employee open enrollment.
• Provide required employee benefit information to employees that elect coverage.
• Verify employee-dependent coverage to ensure dependents on the plan are eligible.
• Distribute new health insurance cards to employees.

ACA Compliance

Prepare for ACA compliance responsibilities if you’re required:

• Calculate the number of Full-Time Employees (FTEs).
• Ensure employee premiums are considered affordable under the ACA.
• Distribute Health Insurance Marketplace Notices to employees.
• Prepare for reporting Forms 1094-C and 1095-C to the IRS.
• Check for the latest updates on changes in ACA laws.

If you are an applicable large employer (ALE) of 50 or more employees, you must provide employees with their benefits-related reporting via form 1095C and both the 1094C and the 1095C to the IRS. If you are self-insured and do not fall under the ALE definition, you must file the 1095B to all employees and both the 1094B and 1095B to the IRS.

Are you feeling overwhelmed by ACA filing options? MyHRConcierge offers assistance for businesses to maintain compliance through our service, ACACompli.

Employee Screening

• Evaluate your screening packages and products to be sure they are meeting your needs.
• Ask your screening expert how they can streamline your current package and evaluate new ideas and products.
• Explore creating a Custom Hiring Package that can give you more information and comprehensive screening for your screening budget.
• Check that your screening company is utilizing one-click applicant invitations to keep you paperless and more efficient.
• Reach out to ask for an end-of-year one-on-one evaluation of your screening goals and how you can get the most out of your employee screening option.

Remember that compliance requirements may vary based on your location, industry and company size, so it is essential that you consult with HR professionals to ensure full compliance with all applicable laws and regulations. Regularly updating and adhering to this year-end HR Compliance Checklist will help your organization stay on top of HR compliance.

Importance of Updating Labor Posters

Frederick also said that updating labor posters annually is a critical component of your compliance checklist. Labor posters provide essential information about workers’ rights, workplace safety regulations, and applicable labor laws, and they must be displayed prominently in the workplace. Regulations can change frequently, and failing to keep these posters up to date can lead to costly fines and penalties, as well as confusion among employees regarding their rights and responsibilities.

MyHRConcierge offers labor law posters for just $35 which can be ordered online and mailed directly to your organization. Our labor law posters are:

• Available for workplaces of all sizes—single locations to large, multiple location corporations
• Available for all 50 states
• Available in English and Spanish
• Designed to meet your location’s compliance requirements

MyHRConcierge Is Your One Stop Shop For Compliance

MyHRConcierge offers a wide variety of HR services to keep you compliant with state and federal regulations. To learn more about HR compliance and support for your company, contact MyHRConcierge by phone at 1-855-538-6947 ext.108, email ccooley@myhrconcierge.com or schedule a free consultation below: