Out with the Old, in with the New (Year)!

As we near the end of the year, it is time to close out 2024 and get ready for 2025. As 2024 comes to a close, HR professionals and employers have a hefty checklist to complete before the holiday celebrations begin.  

Communicate End-of-Year Activities to Employees 

Although certain plans may provide a carryover or grace period, FSA funds, in contrast to Health Savings Accounts (HSAs), typically expire at the end of the plan or calendar year. Remind your employees of important deadlines related to your plan and encourage them to submit receipts for any FSA-approved purchases for reimbursement. 

If January 1 is the effective date of your group health benefits, ensure your team members have finished their elections. 

This is a great time to have your employees verify and update their personal information in your payroll/HRIS system. Important fields to review are their home addresses, personal phone numbers, personal emails, and emergency contacts. This will help avoid any confusion or lost mail, especially before W-2 forms are generated and sent to their homes. 

Remind employees to review their tax information. If they had any changes throughout the year, they may want to complete a new federal and/or state tax form.  

Communicate the updated 2025 maximum contribution limits, including the increased 401(k) cap of $23,500, and highlight how these changes may impact retirement planning strategies. 

Ensure employees have submitted any pending expenses for timely payment.  

Year-end communications to your employees can help set them up for success heading into the new year. Reach out to our team for additional guidance.