Complete these 5 must-do work tasks before 2024

December 27, 2023 11:00 AM

In the few days left before the new year, employees can make sure they're on track for success by checking off the most impactful boxes on their employer's HR platform — and seeking help when needed.

Whether checking that tax withholdings are correct, or reviewing health insurance options, employees have some house-keeping to do to avoid any confusion in the new year. Forty-two percent of employees say the taxes and withholdings on their paychecks are difficult to understand, according to Score.org, and a new survey from Charles Schwab found over half say their 401(k) investments cause more confusion than their health insurance benefits.

But out of sight, out of mind is no way to approach these essential areas. In addition to financial circumstances, personal information provided during onboarding often changes throughout employment. By staying informed and keeping things current, employees can be sure they are getting the most out of their experience with an employer.

"If the employer has an HR platform where all employee information is stored, employees should double-check their information on the platform at least once a quarter to ensure it's up to date," says Shelly Michaels, director, people business partner group at payroll solutions company Justworks. "If employees have any questions, they should reach out to their HR team or customer support on their HR platform."

To make sure that employees know which are the most important areas to review and revise, Justworks shared their guide to closing out the work year. Michaels walks employees through the following steps:

Verify personal information

Whether you've moved or just changed banks, it's essential that employers are made aware so as to avoid any issues with payment or communication.

"Beyond tax purposes, personal information like an employee's name, home address, mailing address, phone number, emergency contact and bank information for payroll is important to keep up-to-date in case an employer needs to mail any pertinent documents or forms, or contact the employee or their emergency contacts," Michaels says. "Managers and HR departments should prompt employees to review and update their personal information via email and/or by sending a notification through the company's HR platform to ensure all employee records are accurate throughout the year."

Review tax withholdings

"Employees can avoid issues like incorrect tax deductions, tax refund delays, and unnecessary penalties and interest payments by making sure that their withholding information is accurate at the end of the year," Michaels says. "Financial situations change throughout the year, and especially in an uncertain economic environment, it's all the more important to review the amounts being withheld for federal, state and local taxes."

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Verify 401(k) contributions

"The beginning of the year is the time to plan properly so that you can take full advantage of the pre-tax benefits of a 401(k) and max out your contributions, either through your salary or final bonus or commission payments of the year," says Michaels. "If you missed this at the top of the year, you can still take advantage at the end of the year by doing a catch-up.

Employers can be proactive in communicating educational materials about 401(k)s from the company's 401(k) provider and send reminders throughout the year to review and/or update 401(k) contributions. Within the company, employees can seek out these resources from their HR department, and outside of a company, employees can tap their financial advisors or work directly with the 401(k) provider for help with the ins and outs of contributing."

Use up your flexible spending account

Employees have forfeited billions in unused FSA funds over the past few years, according to data analyzed by Money.com. Keeping track of how much is available, what it's good for, and whether your employer allows any rollover can help avoid losing money.

"Many household health and wellness products like sunscreen, bandaids or over-the-counter medication, in addition to the more obvious health expenses like contact lenses or glasses, are typically included as eligible expenses for FSAs," Michaels notes. "With FSAs, it can be advantageous to start small if you haven't had an FSA before, because if you don't use the funds within the calendar year, you lose them. Keep this top of mind throughout the year so you're not scrambling to deplete your funds at the end of the plan year."

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Check your paid time off balance

Consider taking a much-deserved day off if you have any PTO left for the year, especially if it expires.

"Using PTO for personal wellness and rejuvenation helps improve work-life balance and prevent burnout," Michaels reminds employees. "The end of the year can be extremely busy and difficult, so after working hard to end the year strong, take some time off to rest and return to work hopefully feeling refreshed in the new year. Employees should be encouraged to take advantage of the paid time off that's provided by their employer. If employees have PTO that will expire at the end of the year, talk to your manager about setting a day aside for a mental health day, a staycation, or by spending a day off however you'd like to recharge."