As we head into the final stretch of 2024, your HR teams face important deadlines and changes related to payroll, benefits, compliance, and HR. Here's your checklist.
PAYROLL & TAX
✅File Form 941. File IRS Form 941, Employer’s Quarterly Federal Tax Return, if you paid wages subject to employment taxes. If you deposited all taxes due on time, you have ten additional calendar days to file. IRS Form 941 is due Oct. 31, 2024, for Q3 2024, and Jan. 31, 2025, for Q4.
✅Schedule Special Bonus Payrolls. Schedule all special bonus payrolls before year-end and verify that all taxable fringe benefits were withheld from paychecks during the year.
COMPLIANCE
✅Prepare for the Second Phase of DOL Threshold Increases. Part two of the Department of Labor's final Overtime Rule goes into effect on Jan. 1, 2025, which increases the weekly salary threshold to $1,128 per week ($58,656 annually). This adjustment is expected to affect many employees and could significantly increase the number of employees eligible for overtime pay.
Prepare for this second phase by increasing employee pay or reclassifying employees as nonexempt. When reclassifying employees, make sure you have reliable timekeeping methods and time-labor-management tools in place for hourly employees. Employers should monitor updates on this rule for changes in pending litigation at dol.gov.
Multi-state Employers: Use this opportunity to ensure state-specific exempt thresholds are met. For states with higher exempt salary thresholds than the federal amount, adjust accordingly.
✅Distribute FSA Covered Expenses Reminder. If you offer a Flexible Spending Account (FSA) as part of your benefits program, remind employees to submit receipts and supporting documentation for incurred covered expenses. The deadline to submit 2024 receipts for reimbursement is Dec. 31, 2024. Be aware that some plans may differ, so review your plan’s submission deadlines and other requirements.
✅Prepare for New Federal, State, and Local Employment Laws. New employment laws and changes often go into effect on Jan. 1, 2025. Review applicable laws, including state and local laws where your employees are working.
✅Review new DOL Guidance Using AI in Recruitment and Hiring. Are you using AI in the hiring process? If so, review new DOL guidance, the AI & Inclusive Hiring Framework, to prevent algorithmic discrimination. This new tool outlines ten important areas employers should consider when leveraging AI technology for recruiting and hiring.
✅Conduct Non-discrimination Testing. Non-discrimination testing is a set of IRS tests that reviews the fairness of an employer’s benefit plan. Employers who offer a 401K, 125 Premium Only Plan (POP), and flexible spending account (FSA) must conduct non-discrimination testing on the last day of their plan year to ensure that benefits are available to all eligible employees under the same terms. By performing early tests, you can modify plans accordingly. The deadline for calendar year plans is Dec. 31, 2024.
✅Prepare for Secure 2.0 Auto-Enrollments (if applicable). Employers with 10+ more employees and employer-sponsored retirement plans added after December 29, 2022, should prepare for the mandatory 401(k) auto-enrollment requirement for new hires beginning January 1, 2025. Employers should consult their 401(k) provider to determine if this provision applies and if proper auto-enrollments are set up.
BENEFITS
✅Prepare for 2025 ACA Threshold Increase. Review your health plan to ensure it meets the Affordable Care Act (ACA) affordability threshold requirements. The IRS has increased the 2025 threshold requirement for employer-sponsored health coverage to 9.02% of an employee's household income. The adjusted threshold percentage applies to the plan year — not a calendar year.
✅Distribute Annual Medicare Part D Notice and Prepare for Changes in 2025. If you provide prescription drug coverage, you must distribute a creditable coverage notice, Medicare Part D Notice of Creditable Coverage, to plan participants by Oct. 15, 2024. Employers offering prescription drug coverage must disclose the plan's creditable status to CMS annually within 60 days of the start of the plan year.
Next year, a new benefit could change the creditable status of employer-sponsored prescription drug coverage. Under the Inflation Reduction Act, employers providing Medicare Part D plans, including standalone Medicare prescription drug plans and Medicare Advantage plans with prescription drug coverage, are required to offer the option to pay out-of-pocket for prescription drug costs in the form of capped monthly installment payments instead of all at once at the pharmacy. The new law goes into effect Jan. 1, 2025. Employers should determine if coverage remains creditable or becomes non-creditable for the upcoming plan year and communicate any change to employees.
✅Review New HIPAA Compliance Requirements and Update Privacy Manuals. A new HIPAA final rule strengthens the privacy of reproductive healthcare information. For employers sponsoring health plans, including self-funded medical plans, FSAs, and HRAs, ensure this update is included in your HIPAA Privacy Manual by the end of 2024 to safeguard employees' health information and avoid potential compliance penalties.
✅Distribute Annual Compliance Notices. Each year, applicable employers are required to distribute certain compliance notices to employees. Examples include a Summary of Benefits and Coverage (SBC), privacy practices on personal health information (HIPPA), the Children's Health Insurance Program Reauthorization Act on health coverage assistance (CHIPRA), and Women’s Health and Cancer Rights Act (WHCRA). Also, make sure that your wellness program follows the compliance requirements under the Equal Employment Opportunity Commission (EEOC), Americans with Disabilities Act (ADA), and Genetic Information Non-discrimination Act (GINA).
GENERAL HR
✅Distribute Annual Internal Documents. Update all annual documents that need to go out to your employees before the end of the year, such as employee handbooks, updated workplace policies, and the calendar of company-observed holidays for 2025.
✅Review State Voting-Leave Laws. With the election approaching in November, review the voting-leave laws in the states where your business operates and where your employees work to determine if you need to give employees time off to vote. While federal law does not mandate that employers give employees time off to vote, most states and some local ordinances have their own rules about voting leave, including whether nonexempt employees must be paid for the time off. Also, review all laws related to politics in the workplace, such as state political expression protections.
✅Update Illness and Attendance Guidelines. Given the typical increase in flu/RSV/COVID during 4th quarter, review and update your company’s illness and attendance protocol and communicate it to employees to prevent confusion and reduce the risk of a workplace outbreak. Check the CDC website for current guidance.
✅Hurricane Relief for Employers. If your business suffered loss or damage due to the recent hurricanes, you may be eligible for help from the following:
FEMA. FEMA offers disaster assistance to help with costs not covered by insurance or other sources. FEMA also helps small businesses with federal procurement and provides resources about small business programs. To apply, visit DisasterAssistance.gov.
Disaster Unemployment Assistance (DUA). DUA is available for small business owners, self-employed, 1099 contract workers, and individuals living or working in the following SC counties: Aiken, Anderson, Bamberg, Barnwell, Cherokee, Greenville, Greenwood, Lexington, Newberry, Oconee, Pickens, Saluda, and Spartanburg. DUA is effective from Sept. 29, 2024, through April 5, 2025. The deadline to apply is Dec. 2, 2024. Visit dew.sc.gov and click the MyBenefits Login to apply. Or call 1-866-831-1724
Low-interest SBA Loans. Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets. The deadline for physical property damage is Nov. 29, 2024. The deadline to return economic injury applications is June 30, 2025. To apply online and for more info, visit sba.gov/disaster. Or call 800) 659-2955.
✅Need Help? 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 help you stay compliant. Download your free 2024 Year-end HR Checklist HERE and for more info, visit propelhr.com
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 company may be exempt from certain requirements and/or be subject to different requirements under the laws of your state. (Updated Oct 18, 2024)
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.
