What to Consider for Year Start

Welcome to SMB Matters. I’m Tom Rose, Senior Vice President of Customer Success and Operations at TriNet. This podcast series takes a close look at the latest news and trends on a variety of topics related to running a successful small or medium sized business.

In a recent podcast, we discussed how you can prepare for the end of the year. Now, let’s dive into the important preparations you should take for the start of 2024.

First and foremost, review your employees’ time-off requests to ensure any that were submitted for 2023 are approved prior to the processing date for that payroll and paycheck date in 2023. This will help you avoid any last-minute payroll complications and make sure you close out 2023 with accurate time-off for your employees.

And, if you happen to be in the situation where your pay period includes both 2023 and 2024 dates, be sure that you are allocating the time-off to the correct year. If overlooked, it can have an impact on your employees’ time-off balances and your company’s books.

For those of you who apply a 10% salary reduction for exempt employees, as permitted in the Department of Labor 2019 Final Overtime Rule, take the time to review nondiscretionary payments to employees. You want to ensure the full salary basis requirement is met, so you stay in compliance with the regulations and don’t risk losing the 2023 exemption.

Here's an important reminder if any of your employees claimed an income tax exemption from tax withholding in 2023 – they need to renew their exemption by February 15, 2024. This can help prevent any unexpected tax surprises and keep things running smoothly for everyone.

Now, if you run a larger food or beverage company, there's a specific task to consider – you may be required to report tip allocations. This is a compliance matter that's vital for your business, so make sure you're aware of the rules and regulations in your region.

Finally, as a reminder from our year-end podcast, other items to consider as you look ahead to 2024:

• While regulatory changes happen throughout the year, we typically see a high number of changes that take effect on January 1. Review the state, city, and local regulatory and tax information where your employees work to see what changes have an effective date of January 1. Then, make sure to adjust policies, procedures or other items to remain in compliance.
• Review and make any updates needed to your 2024 company holiday schedule. Make sure to communicate any changes so your employees know what to expect in the coming year.
• Encourage employees to review their 401k contribution elections prior to January 1, 2024.

Additional items to review in January include federal tax rates and limits. Updates typically take effect then, and it’s critical to keep an eye out for any updates that may impact your business.

Taking care of these essential tasks will set the stage for a successful and organized year ahead.

As a reminder, if you are a TriNet customer, you can find year-end/year-start resources like checklists, deadlines and FAQs by visiting the Year-End/Year-Start Resources site on our platform.

Thanks for listening to SMB Matters. If you enjoyed this show, please leave a review on Apple Podcasts, Spotify or wherever you listen to your podcasts. And please share it with a colleague or make sure to subscribe to our newsletter at TriNet.com/Insights. While you're there, you can learn more on this topic by reading our blog. Also, we’d love to hear from you, so please feel free to drop us a line at SMBMatters@TriNet.com. SMB Matters by TriNet is committed to providing small and medium-size businesses with timely and relevant insights. Thanks again for listening.

Legal Disclaimer:

This podcast is for educational purposes only. With decades of experience supporting small and medium-size businesses, TriNet has unique insight into HR best practices for businesses. TriNet does not provide legal, tax or accounting advice. The materials in this podcast and the options and opinions expressed herein may not apply to your company or scenario, so you should consult with your own advisors on how best to proceed. Reproduction in part or in whole is not permitted without express written authorization from TriNet.