As the year winds down, HR professionals may find themselves juggling a large number of tasks, from wrapping up payroll to organizing holiday schedules and planning for the upcoming year. In the year-end chaos, some essential compliance tasks could slip through the cracks. Neglecting these to-dos, however, can lead to penalties, legal issues, and additional costs for the organization.

The following are some commonly forgotten compliance tasks that HR must complete by the end of the year on top of their other responsibilities:

Certain confidential documents, such as old employee records or outdated performance reviews, may need to be securely purged to comply with recordkeeping laws. Ensure purging is done in line with federal, state, and company policies for proper data retention and confidentiality.

The end of the year is an ideal time to audit HR records. Verify that employee files contain necessary documents, such as performance reviews and disciplinary records. For digital records, ensure they are encrypted and stored according to data protection laws.

Year-end payroll processing and tax filing preparation are critical. Ensuring that W-2s, 1099s, and other required documents are accurate and ready for distribution by early January prevents last-minute errors.

Federal law requires that all employees complete an I-9 form to verify their identity and work authorization. At year-end, reviewing I-9 documentation helps catch missing or incomplete information, especially for remote employees or contractors.

An often-overlooked task is preparing a schedule of deadlines and important dates for the upcoming years, such as payroll processing dates, tax filing deadlines, and compliance training sessions. This schedule helps HR teams stay organized and ensures that no essential compliance deadline is missed.

With regulations frequently changing, it’s essential to review employee classifications and wages to ensure compliance with Fair Labor Standards Act (FLSA) guidelines. Misclassifying employees or not adhering to minimum wage and overtime laws can lead to costly penalties. A quick year-end audit of exempt and non-exempt statuses, contractor roles, and wage rates will help keep your organization compliant.

Overlooking Family and Medical Leave Act (FMLA) balances or eligibility could lead to compliance issues, particularly when employees carry over unused leave into the new year. Reviewing these balances ensures accurate records and allows HR to update any changes to eligibility status in advance.

Labor laws frequently change, and year-end is the time to prepare for new regulations that may come into effect. These might include updates to minimum wage, overtime rules, or paid leave requirements. Proactively implementing policy adjustments, compliance posters, and HR procedures for the upcoming year reduces the risk of non-compliance.

Many states require annual sexual harassment prevention and compliance training for employees and managers. Conducting these sessions at year-end helps ensure that everyone is up-to-date on legal requirements. Online training platforms can simplify tracking completion and maintaining records.

Policies, codes of conduct, and procedures often evolve during the year, especially with changes around remote work, safety, or inclusivity initiatives. Review and update the employee handbook so that it reflects current laws and company policies. Distribute the updated handbook to all employees and obtain acknowledgment to make sure that everyone is aware of the latest guidelines.

The Affordable Care Act (ACA) requires that certain healthcare information be reported for full-time employees. HR must ensure all forms, such as the 1095-C, are prepared and submitted on time to avoid penalties. This is also an ideal time to review benefit records to make sure that they align with employee enrollments and that any changes are documented accurately.

Staying on top of year-end compliance tasks can be challenging, especially with the many responsibilities HR teams juggle at this time of year. Here are some practical tips to help you manage year-end compliance smoothly and set your team up for success in the coming year.