New laws, regulations and ever-changing filing deadlines can make preparing for the new year a challenge. We’ve made it a little easier with a checklist highlighting a few important HR tasks, related to payroll, benefits, compliance, and general HR, to help your small business prepare for first quarter of the coming year. Here’s your guide.
PAYROLL & TAX
File FICA and FUTA. IRS (FICA) Form 941 for Q4 and federal unemployment tax (FUTA) Form 940 are due Jan. 31, 2023. However, if you deposited all FUTA tax when due, you have until Feb. 10, 2023, to file.
File Forms W-2 and W-3. The due date for filing 2022 Forms W-2 and W-3 with the Social Security Administration is Jan. 31, 2023, for filing paper or electronically. Feb. 1, 2023, 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 2022, you must file IRS Form 1096, Annual Summary and Transmittal of U.S. Information Returns, by Feb. 28, 2023, or March 31 if filing electronically. Form 1096 is a summary of all your 1099 forms, including Form 1099-MISC for payments made to contractors and Form 1099-DIV for dividends paid to shareholders.
Prepare Tax filings for Nonemployee Compensation. By Feb. 1, 2023, employers must distribute appropriate tax forms to individuals who received cash payments during 2022, 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, 2023, to send corresponding copies to the IRS if filing by paper and March 31, 2023, if filing electronically.
Update Federal & State Labor Posters. Make sure required federal and state labor posters are up to date, including the new EEOC “Know Your Rights” poster. All required posters must be displayed prominently in your workplace.
Check OSHA Record-Keeping Requirements. Each February through April, applicable employers must post a summary of the injuries and illnesses recorded the previous year. The records must be maintained at the worksite for at least five years. Applicable employers are required to post OSHA Form 300A, summary of workplace injuries and illnesses, through April 30, 2023. The completed summary must be filed electronically by March 2, 2023.
2022 EEO-1 Component 1 Data Collection (Employer Information Report). The 2022 EEO-1 Component 1 data collection for employers with 100 or more employees is tentatively scheduled to open in April 2023. Updates regarding the 2022 EEO-1 Component 1 data collection, including the opening date, will be posted to www.eeocdata.org/eeo1 as updates become available.
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 ALE and must comply with ACA’s coverage, affordability, and reporting requirements in 2023, audit your FTEs for each month of 2022 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 2022 tax year is March 2, 2023. Forms 1094-C and 1095-C must be filed by Feb. 28, 2023, if filing by paper, and March 31, 2023, if filing electronically. Also, check with your benefits broker for any changes in reporting and that required annual notices are distributed to employees, such as Medicare Part D, HIPPA, and CHIPRA.
Watch for Updates on New Rule on Gig Workers. A new rule could see more gig workers added to employer payrolls. The Department of Labor said the proposal would affect millions of workers particularly in industries such as ride-share transportation, construction, restaurants, and healthcare. The new rule would also put into place stricter testing to determine when employers should count contractors as employees.
Prepare ERISA Plan Report. Applicable employers are required to file an employee benefits plan report, Form 5500, with the Department of Labor 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.
Prepare Medicare Part D Disclosure. Employers providing prescription drug coverage to Medicare-eligible individuals must also disclose to the Centers for Medicare and Medicaid Services (CMS) whether the coverage is creditable or non-creditable. This annual disclosure must be made no more than 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.
Review New Rules for Health Plan Transparency. Most group health plans and issuers of group or individual health insurance coverage must make available or disclose personalized pricing information for all covered items and service to their participants, beneficiaries, and enrollees through an online consumer tool, or in paper form, upon request.
Cost estimates must be provided in real-time based on cost-sharing information that is accurate at the time of the request to participants, the public, and the federal government, including making cost-sharing information available online. Some rules are applicable starting with the first plan year beginning on or after Jan. 1, 2022, while others are applicable on July 1, 2022, or as of the first plan year beginning in 2023. Some rules have been delayed indefinitely. Compliance for Price Comparison Information is required on the first day of the plan year beginning on or after Jan. 1, 2023.
Monitor State Developments. State laws can vary. If your business has locations in multiple states, be sure to stay up to date on any state-specific changes which may impact your organization, such as minimum wage increases, expanded leave provisions, and posting requirements.
Consider a Job Posting Audit. An increasing number of states have added pay transparency laws that include regulations in areas such as disclosing pay in job postings and/or during the applicant screening process. This is especially important if your job postings permit out of state applicants and remote workers.
Conduct a Pay Equity Audit. Audit compensation components to ensure there is no unintended wage disparity.
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 3, 2023, make plans to celebrate your most valuable asset - your employees.
Need Help? We've got you covered. Depending on your business and industry, your HR checklist may be different and even more complex. As an IRS-certified Professional Employer Organization (PEO), Propel HR has been a leading provider of Human Resources and payroll solutions for more than 25 years. We partner with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. If you need help, just give us a call at (800) 446-6567 or to learn more, visit www.propelhr.com.
PLEASE NOTE: This information is for general reference purposes only. As we continue to work during an active pandemic, 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 company may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated December 14, 2022)