Your Best January 1 Compliance Checklist Move
Starting the new year with the right compliance steps can save businesses from costly mistakes and penalties down the road. This checklist covers two critical items that HR and benefits teams need to address on January 1, backed by insights from compliance experts and industry professionals. From staying current with new state requirements to handling HSA contributions correctly, these actions set the foundation for a compliant year ahead.
Review New State Requirements
As the Director of Business Development at InCorp Asia, one start-of-year compliance task we always prioritize for our multi-state clients is reviewing all updated state regulations and requirements. Taking this proactive approach helps us to catch changes early and avoid any compliance issues right at the beginning of the year.
For example, we recently worked with a customer operating in several states who was not aware of this newly introduced tax filing deadline in one of their jurisdictions. By identifying the change early and updating their compliance process on time, we helped them avoid missing the deadline and incurring penalties. This support not only protects our clients but also strengthens trust by showing our commitment to staying ahead on their behalf.
Fund HSAs First January Paycheck
I boost engagement by timing a small employer HSA contribution in early January. At Advanced Professional Accounting Services we deposited funds within the first payroll after the deductible reset. The message focused on covering early year medical costs. Participation jumped 27 percent. Members used accounts sooner. That early action built trust. It also reduced confusion around how HSAs actually help.
Issue Updated Policies And Handbook
Start the year by issuing updated policies and a fresh employee handbook. Use clear language that shows what changed and why it matters. Collect signed acknowledgments through an e-sign tool so tracking is simple.
Include short quizzes or quick videos to prove understanding. Make sure translations and accessibility needs are met for every worker. Send the updated handbook today and require signed acknowledgments by a set date.
Run Companywide Access Recertification
A January 1 access review sets the tone for least privilege all year. Confirm who has access to each system and remove rights that are not needed. Close old accounts for former staff and contractors.
Check for risky combinations like the power to create vendors and pay them. Record approvals and keep a clear trail for auditors. Launch your companywide access recertification today.
Validate Vendor Contracts Plus Insurance
Vendor risk often hides in expired contracts and old insurance documents. Check each active vendor for a current agreement that matches today’s work. Confirm coverage limits, additional insured terms, and dates on the certificate of insurance.
Review data protection terms if the vendor touches personal or sensitive data. Hold new work until gaps are fixed and file all proofs in a central place. Contact vendors today for updated contracts and certificates.
Lock Records Then Reapply Retention
Close the prior year by locking records so they cannot be changed. Apply the right retention rules by record type and set clear destruction dates. Pause deletion for items under a legal hold.
Store key financial files in write-once locations to avoid edits. Train staff on how to tag records so the system holds them correctly. Lock your records now and reset your retention schedule before new data piles up.
Refresh Risk Register Align Calendar
A refreshed risk register helps leaders see what could go wrong this year. Add new laws that took effect on January 1 and rate the impact on your work. Update owners, due dates, and mitigation steps so each risk has a clear path.
Align the compliance calendar with audits, filings, and training that are due this quarter. Share the plan with managers and set reminders so tasks do not slip. Update your risk register and calendar today.