2026 is off and running. Are these key items on your “first-of-the-year” HR to-do list? The priorities below highlight some of the most important action steps to address early in the year.

• Update and/or post new state and federal Labor Law posters in plain view for employees to be able to read in common areas used by employees. Upload posters to HR folder for employees to be able to access digitally.
• W-2s and 1099s are due out no later than January 31, 2026.
• Affordable Care Act (ACA) information forms 1095-C or 1095-B must be distributed to employees. See your insurance broker and/or provider for assistance with distribution of these forms.
• Review your Workforce for proper classification according to EFCA (Employee Fair Classification Act) law focusing on the appropriate classification of workers, employee vs independent contractor.
  – Exempt vs. Non-Exempt
  – Contractors; include new contracts with defined start and end date for the contract
• Policy and/or Employee Handbook annual updates for the new year applicable to your business. Be sure to have all employees sign new Acknowledgement Agreements:
  – Employee Handbook
  – Harassment Policy
  – Company IT Policy
  – Confidentiality Policy
• Closing out 2025 is a good opportunity to review and purge outdated company files. Retaining HR records beyond required timeframes can pose potential risks during audits or legal reviews. Older documents may also contain information that is no longer accurate or relevant. Maintaining proper records is an important part of protecting your business.
• Examples of common record retention timelines include:
  – Invoices, receivables, checks, payables = 5 years
  – Audit reports and Annual Statement = permanently
  – Payroll = 6 years
  – HR Files = 3 years
  – Insurance Records = 5 years

These are just a few of the key action items to focus on as 2026 begins. Staying on top of your company records helps ensure compliance while protecting your organization.

If you have any questions or need assistance with any of the “To Do” items, Close HR
Connections is happy to be a resource for guidance and counsel.