November 17, 2022
Marie J. Ignozzi
Hard to believe but it is the middle of November which means 2022 is closing in on the last turn and 2023 is right around the corner. With the end of the year upon us, this is the time for employers to tie up loose ends and begin to prepare for the new year. Here is a brief list of “to dos” to ensure your company is ready to roll right into the new year.
Sounds so basic, right? But this can be easily overlooked. Perhaps your office relocated or got a new tax identification number but checking your company’s information to ensure accuracy for tax forms and state registrations so that all documents are correct is important and often overlooked. Similarly, review the contact and payroll information for all employees and contractors for name changes, tax identification or social security numbers, and addresses. This information is necessary to complete W-2s and 1099s so you want to ensure what you have is accurate.
The new year is frequently a time when benefits and insurance plans change which can be unsettling for employees. If your company will have a new 401k plan, insurance carrier or bonus plan, now is the time to communicate those changes before the new plan begins. If your company offers a Flexible Spending Account (FSA), send reminders to your employees when the plan year ends so that they can make sure to utilize their benefit, and remind employees when their insurance deductibles renew so that they can plan accordingly. Any changes to pay structure in Maryland require advance notice.
The end of a calendar year is the perfect time to revisit and update your company’s policies and employee handbook. Although Maryland and Washington DC recently encountered some new laws that took effect on October 1, January 1 is a common date when new laws also take effect. You will want to ensure your company policies are compliant and up to date with any relevant changes and are consistent with an employer’s actual practices.
Depending on your industry, your company might need to maintain its certifications or licensing. Employees might need to complete education credits. Find out now who is up for renewal and when all relevant deadlines are to ensure that your company and employees have those dates marked on their calendars well in advance.
It is always a good practice to take the time to pause and plan ahead. The end of the year is a great time to think about ways in which your company can get and stay organized. Perhaps you have old files sitting in a storage room that need to be shredded or unread emails that have created a backlog. Was employee turnover high or are you struggling to find new talent? As 2022 comes to an end, take the time to reflect on how this past year went and identify areas of improvement to get a jump on your company’s goals for 2023!
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