Blog: 2025 year-end HR compliance checklist for employers
December 04, 2025
Presented by Paychex
Maintaining HR compliance is crucial for business success, but it can be a complex process with many moving parts. With ever-changing employment laws and regulations, non-compliance poses a significant risk of penalties and fines.
Research from Paychex showed that 34% of business leaders spent more than 10 hours a week on HR administration, and 56% of leaders found record-keeping and documentation to be the most challenging aspect of compliance work (2025 Priorities for Business Leaders, Paychex).
A structured HR compliance checklist helps translate these shifting requirements into a clear plan, ensuring every policy, record, and report stays up to date. It can simplify the process so employers can close out the year confidently and start the next one ready for success.
Payroll and Tax Compliance Review
When completing taxes and payroll for year-end, employers can reference the HR end-of-year items for payroll and tax reporting below to help reduce the risk of mistakes during year-end:
- Verify Employee Information
- Double-Check W-2s
- Prepare Year-End Documents Required for Tax Filings
- Update Payroll Tax Rates for the New Year
- Gather Payroll Records
Employers should also consider doing a review of company policies and benefits, including:
- Employee Benefits Compliance Review
- Compensation Policy Review
- Confirm Year-End Bonuses
- Review Wage and Hour Updates
Start 2026 HR Compliance on the Right Path
The 2026 compliance landscape introduces new complexities — from expanding pay transparency laws across more than a dozen states to evolving AI hiring regulations and increased oversight of multi-state work arrangements. Employers that take time now to document policies, update systems, and train managers will be better positioned to meet these expectations with confidence.
Read the full article on 2025 Year-End HR Compliance Checklist at go.paychex.com/ficpa-YE25.