The second half of the year can sneak up on busy employers, but it’s also a strategic window to ensure your HR practices are ready for what’s next. From mid-year audits to open enrollment prep and year-end reporting, a proactive approach now can reduce risk, prevent last-minute scrambles, and create a better experience for your team.
Here’s a look at what employers should be doing each quarter to stay on track through December:
July–August: Mid-Year Check-In & Enrollment Prep
Summer is an ideal time for a mid-year compliance check. Start by reviewing ACA tracking if you’re an Applicable Large Employer (ALE), especially as full-time employee status must be carefully monitored for annual reporting. It’s also a great time to audit how employees are classified, ensuring W-2 vs. 1099 distinctions are accurate and that exempt and non-exempt roles align with DOL standards.
Other key action items for this period include:
- Reviewing I-9 forms for accuracy and purging those beyond the retention window
Download our free I-9 Audit Checklist here.
- Ensuring OSHA 300 logs are current and accurate
- Scheduling mandatory harassment prevention training (especially in states with annual/biannual requirements)
- Meeting with brokers or your PEO to review benefit offerings
- Evaluating changes and drafting updated Summary of Benefits and Coverage (SBCs)
- Starting open enrollment communication planning to give employees ample time to review their options
September–October: Training, Policies & Reporting
As fall approaches, it’s time to shift your focus to policy reviews and employee education. If you haven’t updated your employee handbook recently, now’s the time to reflect legal updates and refine relevant points. This is also the time to start talking about open enrollment and ensure employees are aware of upcoming changes and deadlines.
Action items include:
- Distributing updated handbooks and collecting signed acknowledgments
Download our toolkit for Updating Employee Handbooks here.
- Scheduling or conducting mandatory compliance training (e.g., safety, DEI, harassment prevention)
- Monitoring the EEOC website for EEO-1 Component 1 reporting deadlines, if applicable
- Completing non-discrimination testing for FSA or Section 125 plans to ensure compliance before year-end
- Begin open enrollment communications
November–December: Year-End Reporting & Final Audits
As the year wraps up, attention turns to data, documents, and deadlines. Launch open enrollment for employee benefits and begin preparing for ACA reporting, including Forms 1095-C and 1094-C, which must be distributed to employees by January 31.
Additional tasks to focus on:
- Verifying employee data: Social Security numbers, addresses, hours worked
- Preparing and reviewing W-2 and 1099 forms
- Reviewing wage and hour compliance for holiday pay and year-end bonuses
- Confirming PTO balances and carryovers are in line with policies and local laws
- Completing performance reviews and preparing any merit increases or year-end compensation changes
- Monitor and plan for 2026 state or municipal changes to minimum wage, paid leave, or required postings
- Update internal systems and communications to reflect any new regulations effective January 1
Looking Ahead
Staying compliant doesn’t happen all at once—it’s the result of consistent, intentional actions throughout the year. By spreading out your compliance priorities and planning proactively, you’ll protect your business, support your team, and avoid unnecessary year-end pressure.
Need help mapping out your next steps? At Tilson, we partner with small to midsized businesses to simplify their compliance, streamline HR processes, and keep people at the center of every decision. Reach out today if you’re ready to finish the year strong, and start the next one with confidence.
