HR To Do: December
Ignite HR Solutions
Outsourced HR & Full-Service Recruiting for Small to Medium Sized Companies.
2025 Year-End HR Checklist: How to Wrap Up the Year Right
As 2025 comes to a close and 2026 begins to peek over the horizon, HR teams have one final task: finishing the year strong. Before you log off for some much-deserved rest and holiday cheer, take time to review key HR, payroll, and compliance items. The following checklist ensures a smooth transition into the new year, saving you time, money, and potential compliance headaches.
Update Employee Information
Now is the perfect time to make sure employee contact details are accurate and up to date. Confirm home addresses, phone numbers, and email addresses for all staff; this helps ensure W-2s are sent to the correct addresses in January.
Refresh Withholdings and Payroll Details
Encourage employees to review their federal withholding (W-4) forms for 2026. Many payroll platforms allow employees to make these updates directly. A quick reminder can go a long way! This is also an excellent opportunity to prompt employees to update their mailing address or other information within your system. Small changes now will save you from having to reissue documents later.
Review Turnover and Staffing Data
Before you close the books, take a deep dive into your year-to-date turnover rates, both overall and by department. Identifying retention trends helps guide 2026 hiring plans and training initiatives. If turnover is higher in certain areas, review exit interviews and feedback to identify root causes such as workload, management style, or culture gaps.
Audit Classifications and Payroll Records
A year-end payroll audit ensures clean, accurate data for reporting season. Confirm that every employee is properly classified as exempt (salaried) or non-exempt (hourly), and that job titles and pay rates align with the latest standards. Most payroll providers offer year-end webinars or special instructions, take advantage of these resources to ensure your reports run smoothly. Clean records today mean fewer headaches (and costs) tomorrow.
Prepare for W-2s and 1099s
Most payroll vendors automatically generate W-2s, but they rely on the accuracy of your data. Incorrect information can lead to costly reprints or corrections. Also, coordinate with your accounting team to verify that all independent contractors are documented adequately for 1099 processing. Getting organized now will save you the January scramble.
Plan for ACA-1095 Reporting
Employers with 50 or more employees or small groups that self-insure must provide ACA-1095s to employees. Start preparing for ACA-1095 submissions early. Verifying employee coverage, eligibility, and dependent information in advance ensures timely filing and reduces stress once deadlines approach.
Communicate 401(k) and Retirement Contribution Changes
Send a company-wide reminder to employees about adjusting their 401(k) or retirement contributions for the new year. For 2026, contribution limits are as follows:
This proactive reminder helps employees plan ahead and demonstrates your organization’s commitment to their long-term financial well-being.
Re-Enroll Employees in FSA Plans
If your company offers a Flexible Spending Account (FSA), remind employees to re-enroll for 2026 and submit 2025 receipts before the deadline. Many plans allow employees to submit receipts through March of the following year, but the expenses themselves must be incurred during 2025. Communicate the deadlines clearly to help employees maximize their benefits.
Review Internal Systems and Recruiting Pages
Start the new year with a clean slate by auditing your HR and recruiting websites. Update job postings, contact information, benefits descriptions, and compliance statements. A fresh, accurate online presence reinforces your brand and ensures candidates and employees receive consistent information.
Prepare for Labor Law Changes in 2026
With each new year comes a wave of federal and state labor law updates. Minimum wage increases, new posting requirements, and evolving compliance obligations are common. Make sure your HR team is briefed and ready for changes going into effect on January 1 to avoid fines or administrative confusion.
Clarify Holiday and Winter Work Policies
Clear communication is key during the winter season. Review your holiday schedules, snow day protocols, and paid time-off policies with managers and employees alike. Let your team know:
Proactive communication helps avoid confusion and sets expectations for the busy holiday period.
Celebrate the Season
End the year with a bit of joy! Consider hosting a company holiday gathering to celebrate achievements and strengthen team culture. Ideas include: 🎁 Ugly sweater contest 🍪 Cookie decorating 🎲 Holiday trivia or scavenger hunt 🎁 Secret Santa or gift exchange 🥗 Potluck lunch
These small traditions help employees feel appreciated and connected as the year wraps up.
✨ Wrapping Up 2025 ✨
Taking care of these year-end HR essentials ensures you enter 2026 organized, compliant, and ready to focus on strategy — not catch-up.
From all of us at Ignite HR Solutions, thank you for an incredible year of partnership, growth, and resilience. Wishing you a joyful, peaceful, and gratitude-filled holiday season.
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