Time for the Year End Checklist
By VICKY BROWN
OK – it’s coming – the end of the year. And that means it’s time to focus onthose critical tasks that will set your business up for success. So in this episode we’re covering the essential end-of-year responsibilities that every small business owner needs to handle. Now, they might seem overwhelming at first, but breaking them down into manageable sections makes them much more approachable.
Let’s start with compliance – after all, it’s the foundation of your business operations- right?. First, pull out your employee handbook. When was the last time you updated it? Employment laws change all the time, and your handbook needs to reflect what’s current. Pay special attention to sections about remote work, technology use, and social media policies – these areas are in constant evolution. And while you’re at it, check your workplace posters. Federal and state agencies update them regularly, and displaying outdated versions can result in penalties. Make sure they’re posted in locations where all employees, including remote workers, can access them.
Next compliance issue – review your I-9 forms. I-9s verify employment eligibility, and mistakes here can really cost you. Make sure every employee has a completed form and that all the documentation is current. Set up a system to track expiration dates for any documents that require reverification. Take time to review job descriptions too – they should accurately reflect the current responsibilities and essential functions. And don’t forget to include remote work requirements, technology proficiency needs, and any new safety protocols your business has implemented.
Here’s something a lot of business owners overlook: employee classifications. You see, the distinction between exempt and non-exempt status isn’t always clear-cut. So, review the classifications carefully, especially if you’ve modified any roles during the year. Remember, misclassification can lead to significant liability for unpaid overtime. Pay particular attention to roles that have evolved to include more independent judgment or specialized skills, as because changes might affect classification status.
Now, let’s talk about benefits. Start by reviewing your health insurance plans. Are they still competitive? Are they meeting your employees’ needs? Consider conducting an anonymous survey to gather feedback about current benefits packages. And open enrollment is fast approaching, so create clear communications about any changes to your benefits packages. Create a comprehensive communication strategy that could include virtual presentations, written materials, and one-on-one consultation opportunities. And don’t forget about retirement plans – make sure they comply with current regulations and serve your employees well. And consider whether your matching policies are competitive in today’s market.
Wellness programs deserve attention too. The past few years have shown us just how important employee well-being is. So, evaluate your current offerings and consider updates that might be a better fit to support your team’s physical and mental health. And don’t be afraid to think beyond traditional programs – consider adding mental health resources, flexible scheduling options, and family support benefits. While you’re reviewing benefits, take a close look at your leave policies. Do they align with current laws and best practices? Consider whether your policies support work-life balance and accommodate various family situations.
Let’s move on to payroll – now this is an area where details really matter. Start by verifying basic employee information: addresses, Social Security numbers, and tax withholdings. I know it seems simple, but incorrect information can cause major headaches during tax season. Create a systematic verification process and carefully document all changes.
If you’re planning year-end bonuses or commissions, begin processing them now. Remember, these payments affect tax withholdings and need careful documentation. So, consider the timing of the payments and their impact on both the company’s and employees’ tax situations. And, speaking of taxes, prepare for W-2 and 1099 forms. Gather all the necessary information and review it for accuracy. Set up a timeline for distribution that ensures compliance with filing deadlines.
“…the distinction between exempt and non-exempt status isn’t always clear-cut. So, review the classifications carefully, especially if you’ve modified any roles during the year.“
And pay special attention to payroll tax rates for the coming year. Many states adjust their rates annually. The same goes for minimum wage – several jurisdictions implement changes at the beginning of the calendar year. So, create a spreadsheet that can track changes across all locations where you have employees. And finally, reconcile all payroll records. This will help identify any discrepancies before they become problems. Take time to audit overtime calculations, benefit deductions, and tax withholdings.
Recruitment and staffing are going to require strategic thinking. Assess your what your team might need for the upcoming year. Will you need to hire? Are there roles that need restructuring? Review your job postings – do they attract the right candidates? Make sure they reflect your company culture and highlight both in-office and remote work opportunities. Evaluate your recruitment strategies and tools. What worked this year? What didn’t? Consider whether your current applicant tracking system meets your needs and whether your interview process is effective.
If restructuring or layoffs might be necessary, start planning those now. These type of decisions require careful consideration and clear communication plans. So, develop contingency plans, and make sure your documentation will support your decisions.
Training and development shape the future of your business. Start by assessing current employee skills you have on the team, and identifying any gaps. It will help you plan training programs that are the most effective for what you need in the coming year. And don’t be short-sided – consider both technical skills and soft skills like leadership and communication. Review your onboarding process too – first impressions matter, and a strong onboarding program reduces turnover. Make sure your process works equally well for both in-person and remote employees.
Look at the effectiveness of your current training programs. Are employees applying what they learn? Are you seeing the desired results? If not, it’s time for adjustments. Maybe consider implementing metrics to track the effectiveness of your training.
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Finally, let’s talk about performance management. Get on the ball and schedule those year-end reviews – yes, they take time, but they’re crucial for alignment and growth. Make sure you prepare thoroughly for each review, gathering specific examples and metrics that support your feedback. Use these performance conversations to set clear goals for the upcoming year. Don’t forget to make sure goals are specific, measurable, and aligned with both employee development and company objectives. Oh, it’s also the perfect time to review compensation structures and ensure they’re competitive.
Don’t forget to identify your high performers. Recognition matters, and you want to retain your best talent. Consider implementing formal recognition programs and career development paths. At the same time, address any performance issues promptly. Carrying these problems into the new year rarely improves the situation. Document all performance discussions and create specific improvement plans where and when needed.
Remember, completing these tasks isn’t just about checking boxes. It’s about building a strong foundation for the upcoming year. Each task will contribute to your company’s stability and growth. So, take the time to do them thoroughly – your business and your employees will benefit.
Look, I know the end of the year is crazy busy, but these tasks are investments in your company’s future. Start now, work through them systematically, and you’ll begin the new year prepared and confident. Your attention to the details will pay dividends in improved operations, employee satisfaction, and staying legally compliant throughout the new year.