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Finish Strong: Your HR Checklist for a Smooth Year-End and a Powerful 2026
Dec 22, 2025
As a small or medium-sized business owner, you wear a lot of hats…by the time year-end rolls around, it can feel like all of them are stacked on your head at once. Between payroll deadlines, compliance updates, open enrollment, and employees asking whether their PTO rolls over, this season can get overwhelming fast.
But it doesn’t have to be.
With a little preparation, the end of the year becomes a launchpad, not a finish line. Use this year-end HR checklist to wrap up 2025 with confidence and set your business, your team, and your payroll processes up for a powerful 2026.
1. Confirm Employee & Contractor Information
Before tax forms and year-end payroll are processed, make sure all employee records are accurate. This prevents costly reprints, returned forms, and delayed reporting.
Verify and update:
Legal names (including recent name changes)
Social Security numbers
Addresses for mailed W-2s and 1099s
Emergency contacts
Work locations (important for state tax and labor compliance, especially remote workers!)
New hire and termination dates
Helpful tip: Send a quick online form or secure employee self-service portal reminder so employees can review and update their information themselves.
2. Review Payroll & Tax Reporting Requirements
This is one of the most critical year-end steps. You’ll need to ensure every paycheck and taxable earning is captured correctly so your W-2s and 1099s are accurate.
Review:
Bonus and holiday pay plans (and whether bonuses will be grossed up)
Fringe benefits such as:
Personal use of company vehicles
Group-term life insurance over $50,000
Gift cards (always taxable!)
PTO payouts (if applicable)
401(k)/retirement contribution limits
Preparation timelines for W-2s and 1099s
Deadline reminders:
Employee W-2s due: January 31
Contractor 1099-NEC due: January 31
If you want help, Accurate Pay Systems (APS) can manage year-end payroll, tax filing, and reporting to keep everything smooth and compliant.
3. Audit Employee Files & Required Documents
Year-end is the perfect time to make sure personnel records are complete and secure.
Check for items such as:
Form I-9s stored properly and completed for every employee
State-required documentation
Signed employee handbook acknowledgements
Expiring certifications or licenses
Updated job descriptions
Digital storage tip: Create a consistent folder structure and naming format to save hours of time later.
4. Benefits & Open Enrollment Wrap-Up
If you renewed benefits for 2026, make sure everything aligns across your systems.
Confirm:
Correct plan selections for each employee
Dependent coverage updates
HSA and FSA contribution elections
Beneficiary designations
Carrier invoices match what employees should be enrolled in
Employee reminder examples:
“Don’t forget! If you have an FSA, unused funds may expire. Check your balance before year-end.”
5. PTO, Time-Off Rollover & Accrual Management
PTO laws vary significantly by state, and payout/rollover rules can get tricky.
To review:
Does unused time roll over, expire, or get paid out?
Are policies consistent with state regulations?
Have managers approved all outstanding requests?
Communication template:
“Here’s what happens to unused PTO at year-end and what you need to know before scheduling any remaining time off.”
6. Update Policies & Your 2026 Employee Handbook
This is one of the best annual cleanup steps you can take.
Consider updating:
Remote/hybrid work policies
Payroll & timekeeping procedures
AI tool usage policies (or create this if you don’t have it yet)
Meal & rest break compliance (especially multi-state employers)
Attendance/leave policies
Safety and cybersecurity practices
7. Plan for Performance Reviews, Compensation & Stay Interviews
Even if you don’t conduct formal annual reviews, year-end is the ideal time to reflect, recognize, and realign.
Plan for:
Merit or market compensation adjustments
Promotions or career path opportunities
Stay interviews to support retention
Training and development plans for 2026
Stay interview sample questions:
What do you enjoy most about your work?
What would make your experience here even better?
What might cause you to consider leaving?
8. Training & Compliance Requirements
Look back at what your team completed in 2025 and what’s required for 2026.
Potential annual or bi-annual training:
Harassment prevention
OSHA / safety
Cybersecurity awareness
Industry-specific or licensing training
9. Technology & System Cleanup
A little digital housekeeping goes a long way.
Complete an end-of-year tech sweep:
Remove or deactivate former employee logins
Update access permissions for promotions or role changes
Clean up shared drives
Archive or reorganize digital HR files
Review HR, payroll, timekeeping, and benefits integrations
10. Celebrate Success & Strengthen Team Culture
Year-end isn’t just reporting and compliance, it’s a chance to reinforce community and morale.
Ideas to appreciate your team:
Personalized thank-you notes from leadership
Highlight accomplishments and projects completed
Host a small gathering or virtual celebration
Share business wins and goals for 2026
Final Thoughts: End Well, Begin Better
A strong year-end process reduces payroll stress, improves compliance, and builds trust with your team. With clear systems in place, you start 2026 not catching up but leading forward.
If you’d like support with year-end payroll processing, tax filings, timekeeping, or HR best practices, the APS team is here to help your business thrive.
