As 2025 comes to a close, many organizations are already feeling the year-end push — wrapping up projects, preparing budgets, evaluating performance, and resetting for the new year. While December often moves fast, it’s also one of the most important windows for employers to ensure compliance, strengthen operations, and set their teams up for a strong start in 2026.
To help you navigate the finish line, we’ve put together MBR’s 2025 Year-End HR & Compliance Guide — a checklist of the critical tasks businesses should address before year’s end.
Update Employment Law Compliance for 2026
Employment regulations continue to evolve at the federal, state, and local levels. Before 2025 wraps up, ensure you are ready for any policy changes taking effect in the new year. Key areas to review include:
- Ohio & federal minimum wage changes
- Columbus salary history ban
- 2027 Columbus pay transparency posting requirements
- Updates to EEOC guidance, I-9 compliance, and pregnancy & lactation accommodations
- State or local paid leave laws impacting your workforce
- OSHA or industry-specific compliance updates
If your business operates across multiple states, it is essential to confirm changes in each location.
Review and Refresh Employee Handbooks
Year-end is an ideal time to audit your handbook for:
- Updated policies
- Required notices
- New state or federal laws
- Remote work and hybrid expectations
- Updated harassment, discrimination, and DEI language
- Performance management and corrective action processes
- PTO, holiday, and inclement weather policies
MBR recommends conducting a full handbook review annually to maintain compliance and support consistent culture and communication.
Finalize Year-End Payroll and Benefits Tasks
As you prepare W-2s, 1095-Cs, and other annual reporting, make sure:
- Employee information is accurate (addresses, names, SSNs)
- All taxable fringe benefits are reported (gift cards, bonuses, wellness benefits, etc.)
- PTO balances are updated and paid or carried over appropriately
- Benefit elections and deductions are correct for January
- Open enrollment changes have been processed
- ACA reporting is scheduled and prepared
If you rely on a PEO or payroll provider, confirm deadlines early — many close sooner than expected during year-end.
Conduct Performance Reviews and Set 2026 Goals
A thoughtful year-end review process helps reinforce expectations, clarify priorities, and strengthen engagement. Key steps include:
- Completing annual performance evaluations
- Updating job descriptions where responsibilities have evolved
- Setting measurable goals for 2026
- Identifying training, coaching, and development opportunities
- Evaluating compensation adjustments for competitive pay and retention
- Recognizing wins and closing the year with appreciation
If you don’t have a formal performance review process, year-end is the best time to start.
Audit HR Documents and Recordkeeping
An end-of-year file review can help reduce risk and improve organization. Consider:
- Purging records that have met their retention requirements
- Ensuring I-9 forms are stored and completed correctly
- Organizing personnel, benefits, and payroll files
- Verifying all required postings are up to date
- Backing up digital HR systems and databases
This ensures accuracy and protects your business in the event of audits or legal inquiries.
Plan for Hiring and Workforce Strategy in 2026
With budgets set and goals established, now is the time to plan for talent needs and team development. Consider:
- Forecasting 2026 hiring needs
- Reviewing recruitment processes for efficiency, compliance, and equity
- Evaluating roles that may need restructuring
- Updating onboarding programs to improve retention
- Aligning staffing strategies with strategic business goals
- Preparing for Columbus pay transparency posting requirements
With a tighter labor market predicted for 2026, proactive planning is essential.
Strengthen Culture and Employee Engagement
Year-end is a powerful moment to reinforce your culture and re-energize your team. You may want to:
- Communicate the company’s year-end highlights and accomplishments
- Review employee feedback or engagement survey results
- Celebrate team wins and individual milestones
- Set or refresh core values and expectations
- Plan early for 2026 training, leadership development, and team-building
A strong finish builds momentum for a strong start.
How MBR Can Support You
From compliance reviews to handbooks, from recruiting to performance management, My Business Resource is here to support your year-end needs and position your business for a successful 2026. If you’d like help completing your year-end review or building your HR strategy for the new year, we’re here for you.