As the calendar edges toward December 31, HR and payroll teams face a perfect storm of deadlines, open enrollment wrap-ups, compliance updates, and tax reporting requirements. Without a clear plan, small oversights can lead to costly mistakes in the new year.
That’s where a year-end HR checklist becomes your best friend. For growing companies using Paylocity, it’s even more essential. At EmphasisHR, we work exclusively on the Paylocity platform, giving our clients the confidence that every detail, big or small, has been addressed before January 1.
Here’s our expert-recommended Year-End HR Checklist for Paylocity users.
1. Verify Employee Data Accuracy
Before tax forms go out, ensure employee records are correct. Double-check names, Social Security numbers, addresses, and email information. In Paylocity, run an Employee Data Audit Report to flag any missing or inconsistent data. Incorrect records can delay W-2s and create compliance headaches.
2. Audit Earnings, Deductions, and Benefit Elections
Confirm that all benefit elections, deductions, and earnings codes are set up properly for the new plan year. This includes health insurance, retirement contributions, and any voluntary benefits. Paylocity’s Benefits Module makes it easy to review these details and avoid payroll miscalculations in January.
3. Review Paid Time Off (PTO) Balances and Policies
Many companies have PTO accrual resets or carryover limits at year-end. Review your policies in Paylocity to ensure accrual caps are correctly configured. Communicate with employees about their balances so there are no surprises.
4. Close Out Open Enrollment
If you’ve just wrapped up open enrollment, make sure all elections are finalized in Paylocity. Verify that carrier connections are active and transmitting correctly so employees’ benefits start smoothly on January 1.
5. Confirm Compliance with State and Federal Tax Changes
New tax rates or wage bases often take effect January 1. Use Paylocity’s compliance updates and tax setup tools to ensure you’re aligned with the latest regulations, especially for multi-state employers.
6. Prepare and Distribute Year-End Forms
Ensure W-2s, 1095-Cs, and other required forms are scheduled for timely distribution. In Paylocity, use the Year-End Processing Checklist to track your progress. This is also a good time to test employee self-service access so they can retrieve their forms online.
7. Reconcile Payroll Records
Run year-to-date payroll reports in Paylocity and reconcile against your general ledger. Look for discrepancies in gross wages, taxes, and deductions. Year-end reconciliation reduces the risk of IRS notices and ensures clean financial reporting.
8. Evaluate Overtime and Classification Compliance
Review your exempt vs. non-exempt employee classifications, overtime calculations, and state-specific pay rules. Paylocity’s time-tracking and scheduling tools make it easier to confirm compliance before the new year begins.
9. Update Job Titles, Pay Rates, and Org Structure
If you’ve made end-of-year promotions, raises, or structural changes, update these in Paylocity before the first payroll of the new year. This ensures accurate reporting for compensation statements and performance reviews.
10. Plan for January Payroll
The first payroll of the year sets the tone. Confirm processing dates, check for holiday-related banking delays, and verify that all year-to-date resets in Paylocity (such as accruals and tax limits) are configured correctly.
Why Partnering with EmphasisHR Matters
Our team of Paylocity experts has guided countless businesses through year-end with zero missed deadlines and zero compliance penalties. Because we work exclusively on the Paylocity platform, we know its tools, updates, and best practices inside and out. From running reports to configuring benefits, we take the work off your plate so you can focus on growing your business, not chasing down year-end loose ends.
Schedule Your Free Consultation:
✅ Ready to have your year-end HR checklist handled start-to-finish? Schedule a free consultation with EmphasisHR today and let us do the work.
