2025 End-of-Year HR Checklist
- Lauren Lyman
- Nov 10
- 6 min read
With 2026 right around the corner, now is the time to start tackling your year-end HR tasks. From staying compliant to updating company policies, we know there’s a lot to manage.
We’ve put together a comprehensive 2025 end-of-year HR checklist to help you wrap up this year with your policies and processes in order, while also setting you up to begin 2026 strong with a clear people strategy and recruiting plan.
COMPLIANCE AND REGULATORY REQUIREMENTS
❏ Update Employee Files: Audit all employee records to ensure documentation is complete and compliant with local, state, and federal laws.
❏ Review I-9s: Confirm all I-9 forms are accurate and on file, and make corrections as needed.
❏ Verify Tax Documents: Ensure all tax-related documents (W-2s, 1099s) are accurate and ready for distribution by the IRS deadline.
❏ Review Labor Law Posters: Confirm all labor law posters are up to date with the latest regulatory requirements for both Federal and State.
❏ Annual Compliance Training: Ensure employees have completed mandatory trainings, such as harassment prevention, safety, or data protection/security training and schedule training for the new year.
Review all licenses and certifications are up to date: Verify all employees’ required licenses and certifications are up to date which are required for their positions.
❏ Prepare OSHA Log Summary: If applicable, prepare OSHA logs to report
workplace injuries and incidents for the year.
❏ Federal and State Law Changes: Review any federal or state law changes in this year and coming year and ensure compliance with all laws including creating policies and procedures.
❏ Review EEO-1 and other Regulatory Reports and Requirements: Ensure required federal and state reporting is accurate and submitted.
☐ Review state-specific compliance reports due at year end or Q1.
FINANCIAL AND PAYROLL REVIEW
❏ Process Final Payroll for the Year: Ensure all payroll records are accurate, including withholding adjustments and deductions.
❏ Issue Year-End Bonuses: Calculate and distribute any bonuses or commissions while ensuring proper tax withholding.
❏ Review Benefits and Retirement Deductions and Contributions: Confirm benefits deductions and contributions align with employee elections and ensure 401(k) matches are accurately reported.
❏ Budget Analysis and Forecasting: Evaluate HR expenditures, analyze variances, and prepare an HR budget for the coming year.
❏ Conduct a Payroll Audit: Review payroll to ensure all meets compliance requirements including wage and hour laws.
☐Verify minimum wage increases: Review any changes to minimum wage that may be effective in the upcoming year.
❏ Schedule a Consultation with our HR Advisors: Review your payroll processing costs and explore possible cost reduction options.
PERFORMANCE MANAGEMENT AND EMPLOYEE DEVELOPMENT
❏ Complete Annual Performance Reviews: Ensure managers finalize performance reviews and provide constructive feedback.
❏ Plan Goal-Setting for Next Year: Facilitate goal-setting sessions for individuals and teams to align with business objectives.
❏ Evaluate KPIs and Goals: Assess whether the company, employees, or HR have met their KPIs and set new targets for the company year.
❏ Review Training and Development Needs: Based on performance reviews, identify areas where additional training is needed and plan development programs for the upcoming year.
❏ Review Salaries Based on a Salary Market Analysis: Review all positions for updated salaries based on local markets to ensure employees are being paid competitively.
❏ Adjust Compensation as Needed: Make adjustments to pay based on
performance and market benchmarks, ensuring fairness and alignment with organizational policies.
❏ Based on salaries market analysis, review all employee salaries to determine if any pay inequities exist.
EMPLOYEE ENGAGEMENT AND RECOGNITION
❏ Distribute Employee Surveys: Conduct an end-of-year employee engagement survey to gather feedback on the company culture and employee satisfaction.
❏ Outline Employee Engagement Strategy: Plan strategies to boost morale, including wellness programs, social events, and team-building activities.
❏ Acknowledge High Performers: Recognize outstanding achievements by individuals or teams, celebrating successes and contributions.
❏ Encourage Work-Life Balance Over Holidays: Reinforce policies on paid time off, and set clear boundaries to ensure employees can enjoy time off.
❏ Plan Professional Development Programs: Create a roadmap for up-skilling and leadership development programs.
BENEFITS AND OPEN ENROLLMENT
❏ Complete Benefits Open Enrollment: Finalize employee benefits elections, update systems, and communicate any benefits changes.
☐ Distribute Annual Notices: Distribute annual notices that are required (HIPPA, COBRA, ERISA, ACA, etc.)
☐ Confirm ACA Compliance: Process and distribute 1094/1095
❏ Communicate Benefits Changes: Inform employees of any updates to benefits programs, policies, or new offerings for the upcoming year.
❏ Check Benefit Deductions: Confirm all benefit deductions align with updated health, dental, vision, life, retirement, and other benefit plan changes for the new year.
❏ Review Year-End Benefits Invoices: Ensure accurate reporting and payment of premiums for all employees by reconciling invoices.
☐ Review contribution limits and distribution: Review FSA, HSA and 401K limits for the new year.
☐ Confirm required nondiscrimination testing for retirement and health plans.
❏ Review Wellness Programs: Evaluate the success of wellness initiatives and make plans to improve or expand offerings in the new year.
❏ Organize Employee Assistance Programs (EAP): Review EAP offerings and communicate the availability of mental health resources to employees.
❏ Schedule a Consultation with our Benefits Specialist: Review your medical and other benefit offerings to explore possible cost reduction.
WORKFORCE PLANNING AND RECRUITMENT
❏ Assess Staffing Needs for the New Year: Analyze business growth projections and evaluate any need for additional hires or reorganization, including costs.
❏ Align with Future Business Goals: Collaborate with senior leadership to ensure that the workforce plan supports the company’s strategic goals.
❏ Determine People Analytics and Metrics: including employee satisfaction surveys, stay interviews, turnover and retention rates, high level absenteeism, pay equity, and diversity and inclusion.
❏ Plan for New Positions or Role Changes: Review any positions changes, internal transfers, or promotions needed for the year.
❏ Review or Create Job Descriptions: Review current job descriptions to ensure the roles and responsibilities of the position, physical requirements, and work environment are listed. This includes review for the FLSA Exemption Status and making necessary changes.
❏ Review Recruitment Metrics: Examine recruitment data from the past year (e.g., time-to-hire, quality of hire) and make adjustments to improve efficiency.
❏ Develop a Workforce Plan: Align workforce planning with overall business goals, including succession planning, internal transfers, and role changes.
❏ Turnover Ratio: Review turnover ratio and assess if changes need to occur to reduce the ratio or what the company goal is regarding turnover ratio.
❏ Conduct Exit Interviews: Review feedback from departing employees to identify retention issues and areas for improvement, including any training.
❏ Training: Determine if training is needed for recruitment, interviewing, hire selection criteria, or evaluation of candidates hired.
DATA AND SYSTEMS UPDATES
❏ Update HRIS and Payroll Systems: Ensure all employee data is current and that any new benefits or policies are reflected in the system.
❏ If no HRIS or Payroll System, determine the goal for the coming year to review systems, including costs for implementation to gain efficiencies.
❏ Backup and Archive Data: Safely store or archive data, ensuring compliance with data retention policies.
❏ Review System Security: Conduct a security audit to verify that employee
and payroll data is secure.
❏ Prepare for Software Updates: If there are new HR software features or systems being implemented, ensure team training is scheduled.
POLICY AND PROCEDURE REVIEW
❏ Review and Update Employee Handbook: Make necessary changes to policies to reflect new laws, regulations, and best practices including local state, county, and city ordinances.
❏ Review current time off benefits and holidays to determine if changes need to occur.
❏ Audit Leave Policies: Ensure leave policies are compliant with new laws, such as those on parental leave, sick leave, and remote work.
❏ Document Changes to Processes: Update any standard operating procedures (SOPs) that have changed, ensuring consistency and compliance.
❏ Communicate Policy Changes: Share updates on policies or procedures with employees to ensure clarity.
BUSINESS STRATEGY AND ALIGNMENT
❏ Evaluate Business Performance Metrics: Review KPIs and analyze key performance metrics to assess the year’s achievements and areas for improvement.
❏ Set Departmental Goals for Next Year: Work with department leaders to align their goals with overall business objectives.
❏ Analyze Market Trends: Identify trends that may impact the business, such as labor market changes, and incorporate findings into business planning.
❏ Forecast Resource Needs: Plan for any resource allocation adjustments
needed to support business growth in the new year.
❏ Communicate End-of-Year Summary: Send a communication highlighting key achievements, challenges overcome, and a message of appreciation from leadership.
❏ Build a Calendar: Of key HR dates and other important business dates for
the year.
Business Insurance
☐ Review workers compensation coverage: Complete WC audit and ensure coverage is current and accurate.
☐ Review Employer Practice Liability Insurance: Review current policy to ensure sufficient coverage. If no EPLI is carried, reviewed to determine if that is needed.
☐ Review all other business insurance: Review current policies to ensure the business is sufficiently covered.
Support For Your End-of-Year Checklist
Our year-end HR checklist is designed to help you wrap up your tasks with confidence and ensure nothing important gets overlooked, while also setting you up to start the new year on the right track. If you’d like extra support in checking items off your list, click the link below to schedule a free consultation and discover how Premier HR Solutions can assist with all your HR and recruiting needs.