Staying Ahead of HR Compliance Deadlines: January 2025

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The start of the year means a wave of compliance requirements for HR professionals. Staying on top of these deadlines helps to keep your organization in compliance, avoid penalties, and instill trust in your employees. A closer look at what you need to know about January 2025 HR compliance deadlines and planning for them.

January 1, 2025: Increase in Minimum Wage and Overtime Thresholds

What’s Required?

Minimum Wage Increases: New minimum wage rates will take effect in many state and local jurisdictions. It is important to confirm the changes applicable to your organization and share the information with relevant teams to update payroll system s as appropriate.
Overtime Exemption Salary Threshold: The Fair Labor Standards Act’s (FLSA) salary threshold for its “white-collar” exemptions is increasing to $1,128 per week ($58,656 on an annual basis). HR professionals need to ensure that any exempt employees meet this threshold to remain exempt from overtime pay.

Preparation Tips:

Payroll systems audit, updating wages in line with new rates.
Inform managers and employees, especially those impacted by the new exemption thresholds.
Ensure compliance by reviewing job classifications.

January 10, 2025: Yearly Review of Employee Handbook

What’s Required?

HR teams should review the employee handbooks and update them, keeping in mind recent changes to relevant employment laws, policies, and procedures. Distribute the new handbook to employees and obtain acknowledgments. To ensure compliance with any distribution regulations, HR professionals should consider having hard copies and even electronic copies of the updated handbook available.

Preparation Tips:

Copy and paste local, state, and federal law updates into current policies.
Support things like remote work, D EI, and leave.
Take the opportunity to clarify policies and reinforce company culture.
Add any new policies to the handbook and ensure employees are aware of the new policies and procedures.

January 15, 2025: Estimated Tax Payment for the Fourth Quarter of 2024

What’s Required?

Businesses must pay their estimated tax payments for the fourth quarter of 2024. That rests with the business, be it a corporation, partnership, or sole proprietorship.

Preparation Tips:

Protect the index of taxable income and confirm cash payment.
Work with the finance or tax team to ensure timely filing obligations.

January 31, 2025: Critical Filing and Distribution Deadlines

Key Deliverables:

Provide Employee and Contractor Copies of Forms W-2 and 1099:
- W-2: Report payroll tax withholdings of employees.
- 1099: Report payments over $600 to contractors.
Distribute Form 1099-R: For workers who get distributions from pensions, retirement accounts, or annuities.
File Form W-2, W-3, and 1096 with the IRS:
- W-3 summarizes W-2 forms.
- Form 1096 is filed with 1099 entries.
Quarterly Federal Tax Return (Form 941): For tax deposits covering Q4 2024.
Annual Federal Unemployment Tax Return (Form 940): Submit if FUTA tax liability is greater than $500 per month.
The Small Employer Annual Federal Tax Return (Form 944): For small employers with tax liabilities under $1,000 annually.
File Federal Excise Tax Return [Form 720]: If excise taxes apply to your organization.

Preparation Tips for January 31:

Work with payroll teams to finalize accurate W-2s and 1099s.
Perform a compliance audit to ensure all submissions and payments are made on time.
File electronically to bypass postal service delays.
Use system reminders or similar compliance management tools for tracking.

How to Stay Ahead

Employ Compliance Tools and Calendars: Compliance management software and synced digital calendars are some of the platforms that can assist in tracking looming deadlines, sending automated reminders, and lessening administrative burdens.
Utilize Expert Assistance: Working with payroll and HR compliance specialists ensures the right filings and a reduced risk of penalties that can be costly.
Keep Communication Clear: Keep employees in the loop on wage, tax forms, and benefits changes to help preserve transparency and trust.
Conduct Regular Audits: Regular reviews of internal systems, policies, and processes can prevent a scramble at the last minute by identifying gaps.

Looking Forward:

HR compliance can never be skipped, it is a year-long responsibility, but kicking off the year with an eye on January deadlines is the path to a smoother road ahead. By knowing these deadlines and what to do about them, HR professionals ensure compliance while maintaining the workplace as a friendly area that complies with the law. Be prepared, get educated, and make compliance a key tenet of your 2025 HR plan.