The end of the year is busy enough on its own, and when you throw in year-end HR requirements for small businesses, entrepreneurs have quite the list to tackle! Return to Eden has made your end-of-year HR process seamless with an HR checklist for your small business with the most important items related to payroll, benefits & compliance to help you end the year well and prepare for a great new year ahead.
Year-End HR Checklist for Small Business
- Address/Personal Info Updates: Remind Employees + Contractors to verify or update their address and contact info, if needed, by December 31. This can usually be done online through your company’s HRIS/Payroll Provider (we’re huge fans of BambooHR + Gusto). It’s important this information is accurate so W2 + 1099 forms can be sent with accurate information to the correct address.
- Prepare W2 + 1099 Forms: If you have employees, prepare all W2’s and deliver no later than January 31. If you paid any contractor $600 or more, a 1099 must be provided to these individuals by January 31 as well. Your HRIS/Payroll provider should prepare these for you & allow you to review for any errors prior to being mailed and/or e-mailed out.
- File Year-End Payroll Tax Returns: Hopefully, you’re utilizing a great HRIS/Payroll provider because if so, they provide this service for you! If not, make sure all tax returns are processed and submitted by you or your tax professional by December 31.
- Affordable Care Act (ACA) Reporting: If you employ more than 50 full-time employees, or if you sponsor a self-insured group health plan, you’re likely required to file a 1095-B, 1095-C and/or a 1095-B form with the IRS in any state where you have employees.
- Finalize Open Enrollment Elections: If you offer health benefits and are on a calendar plan year, your updated benefit plans will start as of January 1. Be sure your team knows the Open Enrollment Deadline so they submit their benefits elections before the plan year starts!
- 401k Program Registration: Several states now require employers of any size to provide a 401(k) program to their employees. California, for example, requires those with 5+ employees to register for the CalSavers program (a state run program) or offer their own retirement plan no later than December 31, 2022. CA businesses with less than 5 employees have until December 31, 2025 to get on board.
- 401k Catch-Up Contributions: Some employees may want to elect in an “extra” 401(k) contribution to their account to contribute the max amount allotted by the IRS. Be sure your employees know the last date to make changes to the final payroll of the year so they don’t miss out on this opportunity.
Minimum Wage/Salary Changes
- Review Updated Minimum Wage: 25 states will have their minimum wage increase as of January 1. Connect with your People Ops team to see if any changes impact your business. If so, share these changes with your team & update your HRIS/Payroll system before the 1st paycheck of 2023.
- Review Updated Minimum Salary Requirements: States may also have their own minimum salary requirements for exempt employees. Starting January 1, 2023, California, for example, has a minimum exempt salary threshold of $64,480 for employers of all sizes. California also has a minimum exempt salary threshold of $112,065.20 for Computer Software employees. Connect with your People Ops team to see if there are any required changes to salaries for your team.
- Review Harassment Training Requirements: Several states require businesses to provide harassment training to their employees and people managers. Ensure your team has completed all required training before the end of the year. Also, look ahead to see if any one is due for a required training update in the new year.
- Review Updated Labor Laws: A slew of labor + employment law changes across 17 states will occur once January 1 hits. If you have even 1 employee in any of these affected states, you’ll need to ensure you’re providing updated info. Connect with your People Ops team to ensure your brand is legally sound (aka compliant) with any requirements. A few examples of changes happening January 1 are –
- AB1041 – Expands who an employee can take leave to care for under both the California Family Rights Act (CFRA) and California’s paid sick leave law. Beginning January 1, 2023, employees can take CFRA leave or paid sick leave to care for a “designated person.”
- AB1949 – Amends the CFRA to require employers with five + employees to provide up to five days of unpaid bereavement leave for an employee within three months of the death of a family member.
- SB1162 – Requires employers to disclose salary/pay range to job applicants and employees upon request. Companies with more than 14 employees must also include the pay scale in every job posting, regardless of posting site.
- Paid Medical + Family Leave – if an employer does business in Colorado, they must pay into Colorado’s Paid Medical + Family Leave program starting January 1, 2023.
- SB3616 – Amended the states’ Human Rights Act, which prohibits employers from engaging in discrimination based on numerous protected characteristics, including race. This amendment expands the definition of “race” to include traits associated with race, including but not limited to hair texture and protective hairstyles such as braids, locks, and twists.
- SB5761 – Requires employers to disclose hourly wage or salary and a general description of benefits in postings for job openings.
Rest + Reflect!
Most importantly, we hope you’ll take some time to rest and reflect on your entrepreneurial journey over this past year. Chances are there are many lessons to learn from and wins to celebrate. Both are equally important to your evolution!
As you close out the year, refer back to this HR Checklist for your small business to make sure nothing is left out. If you’re looking to consciously scale your brand in 2023, Return to Eden will partner with you to ensure this happens from a proactive and restorative space. We’d love to create a purposeful People Ops strategy that supports the holistic growth of your business.
Cheers to your most adventurous and fulfilling year yet!