Year-End HR Checklist: What to Wrap Up Before January 1

As the year comes to a close, it’s the perfect time to review key HR processes and set the stage for a smooth start to the new year. A thorough year-end review helps ensure compliance, strengthens your recordkeeping, and allows you to catch policy or data gaps before January 1.

Review Payroll and Benefits

Confirm that all wages, taxes, and benefit deductions are accurate for the year. Make sure taxable fringe benefits such as gift cards, bonuses, and personal use of company vehicles are reported correctly. California employers with remote staff in multiple states should also confirm that tax and benefit rules are applied correctly by location.

Confirm deadlines for W-2s, ACA filings, and other annual reports. This is a great time to have employees review their mailing addresses on file to avoid delays in receiving important tax documents.

Confirm Compliance Updates

Each January brings a wave of new employment laws, especially in California (keep an eye on our blog for our annual post on legal updates). Review state and federal changes that impact wage and hour requirements, workplace postings, exempt salary thresholds, and minimum wage adjustments. Update your employee handbook and required notices to reflect these changes and distribute the revised version to employees in early 2026.

Evaluate Time Off Balances

California’s paid sick leave and vacation policies have strict accrual and carryover rules. Review balances to ensure accuracy and compliance with your written policy. Communicate any year-end reminders clearly so employees understand how their time off will carry over into the new year.

Set Priorities for 2026

Take stock of what worked well this year and where your employment practices could be strengthened. Consider upcoming initiatives like pay transparency updates, manager training, or refining your safety programs under Cal/OSHA. Setting priorities now positions your team to enter 2026 organized, compliant, and focused.

If you’d like support reviewing your handbook, paid sick leave policy, or year-end HR checklist, our consulting team can help you start 2026 with confidence.