Staying compliant with federal regulations is crucial for businesses, particularly as the year...
As we near the end of 2024, it's an opportune time for companies to remind employees about using any remaining benefits before they expire. Ensuring employees understand the implications of unused funds in their accounts can help them maximize their benefits while remaining compliant with company policies. Below are some proactive steps to take as we approach the close of the year.
Year-End Compliance Reminder
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Health Spending Accounts: Remind employees about the policies governing unused balances in their health-related accounts, including Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs), and Dependent Care FSAs. Many calendar-year plans require that unused funds be forfeited if not used by the end of the year. By reminding employees now, you encourage them to use these funds effectively and avoid any last-minute rush or loss of resources.
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Paid Time Off (PTO) Balances: This is also a great time to review employee PTO balances and communicate the company’s policy regarding unused time off. Some companies allow limited carryover of PTO, while others may cap or eliminate unused time entirely. This reminder now helps employees plan accordingly and manage their remaining PTO in a way that aligns with company guidelines.
Conclusion
Taking these compliance steps helps ensure a smoother transition into the new year for employees and HR teams. By providing these reminders, you’re not only helping employees maximize their benefits but also reinforcing transparent and proactive management of company policies. These simple actions can make a significant difference in employee satisfaction and benefit utilization as we close out the year.
To learn more about the upcoming year's compliance important dates for 2025 contact one of our TPG Payroll & HR Specialists at 909.466.7876 today, and find out how our Payroll Solutions have helped dozens of businesses!
Also, check out the New 2025 Notice Requirement for Fixed Indemnity Coverage and find out: What are Prorated Salaries?
