The end of the year brings excitement and growth planning, but it also comes with high-risk compliance obligations that too many businesses overlook. In fact, nearly 60% of small businesses admit to missing a year-end filing in the last three years, which can lead to costly fines and operational headaches.
Here are the five most overlooked compliance tasks and how you can tackle them before Q4 ends.
1. Updating Employee RecordsIt sounds simple, but outdated employee files are a common compliance risk. Missing addresses, outdated emergency contacts, or unrecorded changes to work status can all create problems when filing taxes or managing benefits.
Quick Record Audit Checklist:
2. Recalculating Overtime Classifications
The Department of Labor’s overtime thresholds change, and many businesses forget to revisit their employee classifications. A small oversight here can trigger wage disputes and back pay liabilities.
Tip: Review job roles and pay structures to confirm exempt vs. non-exempt status is still compliant with current laws.
3. Verifying Independent Contractor Status
With the IRS and states cracking down on misclassification, ensuring your contractors are truly independent is a must. Misclassifications can result in steep fines and tax penalties.
Tip: Reassess contractor agreements and duties; if they look more like employees, you could be at risk.
4. Reviewing Benefit Plan Compliance
From ACA reporting to retirement plan nondiscrimination tests, year-end is the perfect time to make sure benefit plans are properly managed and reported. Missing filings can lead to penalties and employee dissatisfaction.
Did You Know?
Unclear PTO policies are one of the top 3 causes of employee disputes brought to HR in Q1.
5. Preparing for State and Local Filings
Federal compliance often gets the spotlight, but state and local requirements, like business license renewals, workers’ comp audits, and payroll tax filings, can sneak up at year-end.
Essential Year-End Filings:
Final Thoughts
Year-end doesn’t have to mean compliance headaches. By addressing these five overlooked tasks now, you’ll avoid unnecessary penalties, protect your business, and start the new year with peace of mind.
And if you’d rather not juggle compliance on your own, TEL Staffing & HR is here to help. From payroll and workers’ comp to HR and benefits administration, our team ensures you stay compliant and efficient so you can focus on growing your business.
Want a deeper dive into compliance efficiency? Download our free premium resource: The 2025 Compliance & Efficiency Playbook.