Stay on top of new laws and important tasks related to payroll, benefits, compliance, and general HR to help your small business prepare for 2024. Here’s your checklist for Q1.
PAYROLL & TAX
File FICA and FUTA. IRS (FICA) Form 941 for Q4 and federal unemployment tax (FUTA) Form 940 are due Jan. 31, 2024. However, if you deposited all FUTA taxes when due, you have until Feb. 10, 2024, to file.
File Form 720. If you own a business in goods and services that are subject to excise tax, you must prepare and file Form 720 by Jan. 31, 2024.
File Forms W-2 and W-3. The due date for filing 2023 Forms W-2 and W-3 with the Social Security Administration is Jan. 31, 2024, for filing paper or electronically. Feb. 1, 2024, is the deadline for all businesses to distribute Form W-2 to employees.
File Form 1096 Annual Summary and Transmittal of U.S. Information Returns. If your business paid independent contractors or freelancers in 2023, you must file IRS Form 1096, Annual Summary and Transmittal of U.S. Information Returns, by Feb. 28, 2024, or March 31, 2024 if filing electronically. Form 1096 is a summary of all your 1099 forms.
➡️➡️ READ MORE: Important Year-end Payroll Tasks
Prepare Tax filings for Non-employee Compensation. By Feb. 1, 2024, employers must distribute appropriate tax forms to individuals who received cash payments during 2023, including wages, non-employee compensation, dividends, royalties, and profit-sharing distributions. Additional copies must be submitted to the Social Security Administration at the same time. Employers have until Feb. 28, 2024, to send corresponding copies to the IRS if filing by paper and March 31, 2024, if filing electronically.
COMPLIANCE
Update Federal and State Labor Posters. Make sure required federal and state labor posters are up to date. All required posters must be displayed prominently in your workplace. Required federal and state labor posters must be made available to remote employees as well.
Review OSHA Record-Keeping and New Final Rule Requirements. Applicable employers are required to post OSHA Form 300A, Summary of Workplace Injuries and Illnesses, from Feb. 1. through April 30, 2024. The deadline for electronically filing the completed summary is March 2, 2024.
Beginning Jan. 1, 2024, a new final rule requires applicable employers with 100 or more employees in certain high-hazard industries to electronically submit information from their Form 300-Log of Work-Related Injuries and Illnesses and Form 301-Injury and Illness Incident Report to OSHA once a year. These submissions are in addition to the required Form 300A. OSHA will begin accepting 2023 injury and illness data on Jan. 2, 2024. The deadline to file Forms 300, 301, and 300A is March 2, 2024.
Submit Mandatory 2022 EEO-1 Component 1 Report. The deadline to submit the 2022 EEO-1 Component 1 Report was Dec. 5, 2023. Applicable employees have been given an extension and have until Jan. 9, 2024, to submit and certify the mandatory 2022 EEO-1 Component 1 Report.
➡️➡️READ MORE: Importance of Accurate Record-keeping for Small Business Payroll
Check All Required Compliance Training. Check all federal, state, and industry workplace training requirements that apply to your business, as well as workplace training mandated in your state. For example, many states require certain workplace safety training and best practices for sexual harassment training.
Audit FTEs and Prepare ACA Reporting. Under the Affordable Care Act (ACA), the responsibility to offer affordable healthcare coverage is on the employer, and reporting requirements depend on the number of full-time equivalent employees (FTEs).
To determine if your business is an Applicable Large Employer (ALE) and must comply with ACA’s coverage, affordability, and reporting requirements in 2024, audit your FTEs for each month of 2023 to determine if you have reached or exceeded 50 full-time and/or full-time equivalent employees. ALEs that fail to provide full-time workers with minimum essential coverage that meets the affordability threshold are subject to two different penalties, which the IRS refers to as shared responsibility payments.
The deadline for applicable employers to distribute Form 1095-C to their full-time employees for the 2023 tax year is March 2, 2024. Forms 1094-C and 1095-C must be filed by Feb. 28, 2024, if filing by paper, and March 31, 2024, if filing electronically. Also, check with your benefits broker for any reporting changes and ensure that required annual notices, such as Medicare Part D, HIPPA, and CHIPRA, are distributed to employees.
BENEFITS
Prepare ERISA Plan Report. Applicable employers are required to file an employee benefits plan report, Form 5500, with the Department of Labor (DOL) if, on the first day of an ERISA plan year (which is different than the policy year), 100 or more participants are enrolled in coverage.
Medicare Part D Disclosure. Employers providing prescription drug coverage to Medicare-eligible individuals must also disclose whether the coverage is creditable or non-creditable to the Centers for Medicare and Medicaid Services (CMS). This annual disclosure must be made 60 days after the beginning of each plan year. The disclosure is required regardless of whether the entity’s coverage is primary or secondary to Medicare.
GENERAL HR
Monitor Changes in State Laws and Regulations. State laws can vary. If your business has locations and employees working in multiple states, stay updated on any state-specific changes that may impact your organization, such as minimum wage increases and paid leave requirements.
Conduct an Annual Pay Equity Audit. Review compensation components to ensure there is no unintended wage disparity.
Check State Pay Transparency Requirements. An increasing number of states have added pay transparency laws that include regulations such as disclosing pay in job postings and/or during the applicant screening process. Be familiar with these laws if your job postings permit out-of-state applicants and remote workers.
Plan Ahead for Employee Appreciation Day. An annual holiday observed on the first Friday in March, Employee Appreciation Day recognizes employees for their commitment and hard work. On Friday, March 1, 2024, plan to celebrate your most valuable asset - your employees!
PLEASE NOTE: This information is for general reference purposes only. Because laws, regulations, and filing deadlines are likely to change, please check with the appropriate organizations or government agencies for the latest information and consult your employment attorney and/or benefits advisor regarding your responsibilities. In addition, your business may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated Dec. 13, 2023)
Need Help?
We've got you covered. Depending on the type of business and industry, your checklist may be different and even more complex. By partnering with an IRS-certified PEO, like Propel HR, you gain access to a team of HR experts to help you navigate the complexities of your business as well as stay compliant.
➡️➡️Download your one-page HR Checklist for Q1 2024 HERE.
About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for more than 25 years. Propel partners with small to midsized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. Visit our website at www.propelhr.com.
