The end of the current year and the start of a new year are always fun for employees, but not the departments that need to get the work done. The workload for HR departments usually increases as the year comes to an end.
There are certain responsibilities and checklists that employees in the HR department need to prepare and fulfill for the year-end in order to start a fresh year. And to help you get some of these things covered, here is an item checklist for the HR department to do at the year-end:
1. Conduct a check on records and payrolls
An important job that the HR department does is to keep clean records of all data, including employee details and payroll details. And it’s critical that by the end of the year, all these records must be cross-checked to fill any required gaps.
The HR department is responsible and must conduct a payroll audit to make sure that employee time-off, leave accounts, tax deductions, and wage deductions are all accounted for and accurately calculated. Upon the completion of the audit, the final payroll must be confirmed. Once the payroll is confirmed, the HR department or payroll department can take forward the procedure for filing the annual tax forms and applications.
Remember that it’s also the HR department’s responsibility to keep a record of all employees properly documented as per FLSA (Fair Labor Standards Act).
2. Update Policies
For a developing organization, it’s common to change policies and work procedures on an annual basis. And since state and federal laws are constantly changing too, it’s critical to make sure your policies are updated to stay compliant with the laws at all times.
Ensure that your vacation policies, sick-leave policies, and leaves of absence are compliant with FLSA. And make the necessary changes to organizational policies, as per board decisions for the new year.
3. Create your next year’s Calendar
HR departments are required to have certain areas of the work pre-planned for the smooth and productive start of the new year. Make a calendar to mark all the specific dates, plans, and schedules to keep track of procedures. This would also work as a reminder for your employees to be aware of the deadlines. And for the HR department to know the deadlines for tax filings and report submission.
4. Filing year-end tax forms
The HR department is required to file tax forms for employees at the end of each year to the IRS. Forms 941 and 940 must be filed for the tax returns, and file forms 1099-NEC & 1099-MISC for non-employee payments and other payments.
Final Words
The HR department holds a great responsibility in any organization, hence they must make sure to stay updated on the laws and ensure to be in compliance with them. Their responsibility doesn’t end there, the HR department must also make sure to complete their tasks in a timely manner, so as to avoid any legal pitfalls that follow the errors they might make.
