Year End Compliance Checklist for HR Teams in 2026

As December 2025 draws to a close, HR professionals must prioritize year-end tasks to ensure compliance with evolving federal, state, and local regulations. Proactive compliance not only mitigates risks—like I-9 penalties ranging from $250 to $2,500 per form (USCIS guidelines)—but also strengthens the foundation for talent acquisition, onboarding, and retention. Retaliation claims continue to dominate, comprising over 56% of EEOC charges (EEOC data), while OSHA penalties highlight the need for robust safety protocols. 

At EMP Trust HR, we deliver an integrated platform that spans the full employee lifecycle: from ATS (Applicant Tracking System) and CRM for talent sourcing, to seamless onboarding, electronic Form I-9 and E-Verify compliance, HR policy management, and tools designed to boost employee engagement. Our solutions automate workflows, reduce errors, and create engaging experiences that improve retention—helping HR teams shift from administrative tasks to strategic impact. 

Here’s your updated 2025 Year-End HR Compliance Checklist, with ties to how integrated systems like EMP Trust support ATS-CRM, onboarding, I-9/E-Verify, policies, and engagement: 

1. Payroll and Tax Reporting

• Distribute Form W-2 to employees by January 31, 2026 (extended to February 2, 2026, for SSA filing if needed due to weekend). 

• File with SSA by February 2, 2026 (electronic recommended). 

• Issue 1099-NEC to contractors by January 31, 2026. 

• Audit payroll for accuracy, including 2025 wage base updates. 

• EMP Trust Integration: Seamless data flow from our ATS and onboarding modules to payroll systems ensures accurate employee records from hire, minimizing year-end discrepancies. 

2. Form I-9 Compliance and E-Verify

• Audit all active I-9 forms; reverify expiring authorizations. 

• Use the latest Form I-9 (edition 01/20/25, expiring 05/31/2027); prior editions (08/01/23) remain valid until their dates. 

• Leverage E-Verify for compliant verification. 

• Key Risks: Penalties up to $2,500 per form (USCIS). 

• EMP Trust Advantage: Our DHS-certified electronic I-9 and fully automated E-Verify integration handles remote/in-person verification, error checks, audits, and reminders—ensuring 100% compliance while feeding data directly from ATS/CRM hiring decisions into onboarding. 

3. Affordable Care Act (ACA) Reporting

• Furnish Forms 1095-B/C to employees by March 2, 2026. 

• File with IRS: Paper by February 28, 2026; electronic by March 31, 2026 (mandatory for 10+ returns). 

• EMP Trust Support: Onboarding workflows capture benefits enrollment data early, streamlining ACA tracking and reporting preparation. 

4. EEO-1 and Diversity Reporting

• Monitor EEOC for 2025 EEO-1 Component 1 collection opening (typically early 2026; prepare demographic data now). 

• Ensure accurate workforce data by race/ethnicity, sex, and job category. 

• EMP Trust Tie-In: Self-service portals and policy acknowledgments during onboarding help maintain up-to-date employee demographics and support diversity initiatives. 

5. Benefits, HR Policies, and Open Enrollment Preparation

• Audit benefits data and resolve issues. 

• Update and distribute revised HR policies (e.g., pay transparency, harassment prevention). 

• Prepare for 2026 open enrollment amid state-specific changes. 

• EMP Trust Strength: Digital policy management allows easy updates, electronic acknowledgments, and tracking—ensuring employees review and sign off during onboarding or year-end reviews, reducing compliance gaps. 

6. Onboarding and Employee Engagement Review

• Evaluate 2025 onboarding processes for new hires. 

• Assess engagement metrics; address PTO carryover or use-it-or-lose-it policies. 

• Why It Matters: Effective onboarding boosts retention by up to 50% and productivity by 62% (industry studies). 

• EMP Trust Advantage: Our platform creates personalized, multilingual onboarding journeys with branded portals, task assignments, training modules, and engagement tools (welcome messages, coworker connections, feedback surveys). Integrated ATS-CRM ensures smooth transition from recruitment to Day 1, fostering immediate belonging and long-term engagement. 

7. Workplace Posters, Trainings, and General Audit

• Update federal/state posters and conduct mandatory trainings. 

• Self-audit personnel files, classifications, and record retention (e.g., I-9s for required periods). 

• EMP Trust Holistic Support: From ATS-sourced candidate data to engagement dashboards, our system provides audit-ready trails, secure backups, and analytics to identify compliance or engagement risks. 

Tackling these tasks now positions your organization for success in 2026. Integrated platforms like EMP Trust reduce administrative time—allowing focus on what matters: attracting talent via ATS-CRM, delivering compliant and engaging onboarding, enforcing policies, and driving employee satisfaction. 

Transform Your HR Lifecycle with EMP Trust: Hundreds of enterprises rely on us for end-to-end solutions, including ATS integrations, automated E-Verify, policy management, and upcoming advanced employee engagement features. 

Ready to streamline compliance while enhancing engagement? Schedule a demo today!

Stay compliant, engaged, and ahead in 2026!