HR year-end checklist: benefits, compliance, and goal setting

Executive overview

Q4 is the busiest season for HR professionals, with benefits deadlines, legal changes, and planning all converging at once. A clear three-step process covers the essentials: communicate reminders to employees, check for legal changes, and set HR goals for the new year.

Solo HR teams that get ahead of year-end deadlines reduce reactive firefighting and enter the new year in control.

Employee year-end reminders

• Send reminders early — the sooner employees get them, the fewer questions land on HR's desk.
• FSA funds expire December 31st (or plan year-end); remind employees to spend balances or submit receipts before the deadline.
• HSA balances roll over; FSA balances do not (unless the plan has a grace period or carryover — clarify which applies).
• Remind employees to use expiring PTO; if PTO rolls over, highlight that so employees don't pile up holiday requests unnecessarily.
• Encourage employees to check all ancillary benefit elections for end-of-year cutoffs.
• Remind employees to update contact information (addresses, phone numbers) before W-2 and ACA forms are generated.
• The IRS requires employers to notify employees to resubmit Form W-4 if they had a significant life change (marriage, divorce, dependents); this notice is due by December 1st.
• Prompt employees to finalize benefit elections for January 1st effective dates and to refill prescriptions before coverage transitions.

Year-end legal compliance checks

• Review IRS adjustments taking effect in the new year — contribution limits, overtime thresholds, and required form changes (e.g. 1095-C).
• 2023 HSA out-of-pocket limits increased: $3,850 for individuals (up from $3,650) and $7,750 for families (up from $7,300).
• Federal student loan repayment pause ended December 31st — employees resuming payments may need to reassess their benefits elections.
• Check state and local law changes; many take effect January 1st and receive little publicity.

Setting HR goals for the new year

• Reflect on the current year before planning ahead — list accomplishments and identify gaps.
• Identify employee pain points and process inefficiencies as starting inputs for goals.
• Goals should be specific and measurable; set calendar checkpoints to track progress through the year.
• Get involved with the budget — build financial literacy and start coordinating budget items to add strategic value beyond day-to-day HR.
• Cultivate culture — audit what is and isn't working; consider an anonymous employee survey on engagement and inclusion.
• Audit the PTO policy — remote work and inflation have shifted employee preferences; review whether the current policy still fits.