Closing Out the Year with Confidence: A Practical Guide for HR & Payroll Teams

As the final quarter unfolds, HR and payroll professionals know what’s coming: deadlines, data validation, open enrollment, and a flood of year-end tasks that all need to be done- accurately and on time.

At Vintage Hill Consulting, we’ve seen it all. The end of the year can be overwhelming, especially when juggling compliance updates, system configuration changes, and the need to support employees during open enrollment. But with the right planning and tools in place, this season can be less of a scramble- and more of a strategic handoff into the new year.

Here are some proven ways to prepare your HCM systems and teams to close out the year with clarity and confidence.

Open Enrollment: Get Ahead, Stay Ahead

Open Enrollment tends to set the tone for year-end activity, and when it runs smoothly, everything else feels more manageable.

• Start with a System Audit: Review benefit plans, rates, eligibility rules, and vendor file configurations. Make sure everything is accurate and aligned for the upcoming year.

• Communicate Early and Often: Use automated notifications, quick-reference guides, and FAQs to support employees through the enrollment process.

• Test the Experience: Walk through enrollment as if you’re an employee. A few adjustments to the user journey can dramatically reduce confusion and support tickets.

Year-End Payroll Processing: Clean Data, Clean Close

Payroll is the heartbeat of year-end. One missed detail can have a ripple effect across W-2s, compliance reporting, and employee trust.

• Validate Employee Records: Double-check names, addresses, Social Security Numbers, and tax withholding elections. Incomplete or incorrect data now will cost time later.

• Reconcile Early: Don’t wait for the final pay period to balance your books. Reconcile wages, taxes, and deductions against internal reports and external filings.

• Plan for Special Runs: If you’re issuing year-end bonuses or off-cycle checks, confirm deadlines and tax treatment ahead of time. Last-minute changes create risk.

Configuration Updates: Set the Stage for 2026

Your HCM system isn’t just a record-keeper, it’s a living tool. Make sure it reflects the changes coming in the new year.

• Update Calendars and Schedules: Load the 2026 holiday schedule, update time-off accrual rules, and validate carryover limits.

• Adjust Limits and Thresholds: IRS contribution limits, benefit maximums, and local compliance thresholds often shift year to year- be sure your system is aligned.

• Back Up and Archive: Archive historical data and ensure secure backups are in place before any new-year processing begins.

Compliance: Stay Aligned, Stay Ahead

Regulatory deadlines don’t wait. The fourth quarter is a critical window to prepare for filings, audits, and changes in legislation.

• Track Changes in Tax and Labor Law: Stay informed about new state and federal legislation that could impact reporting or deductions- and keep an eye on those shiny new OBBB OT rules before they sneak up and clock out early!

• Run Compliance Reports: Use your system’s audit tools to confirm that all required documentation and certifications are complete.

• Prepare ACA and Year-End Filings: Don’t let 1095-Cs or other required filings become last-minute scrambles. Create a schedule and assign responsibilities now.

Use Year-End to Fuel Next Year’s Strategy

While the focus is often on closing the books, year-end is also an ideal time to lay the groundwork for the year ahead.

• Leverage Analytics: Year-end reports can offer insight into trends around headcount, turnover, absenteeism, and engagement. Use this data to inform your 2026 workforce strategy.

• Update Roadmaps: Whether you're planning to roll out a new module, clean up workflows, or revisit system training, now is the time to build that into next year’s plan.

• Gather Feedback: Ask internal teams what worked, what didn’t, and what they'd like to see improved in the coming year. These insights are gold for optimizing both process and system performance.

Finish Strong, Start Stronger

Year-end doesn’t have to mean chaos. With clear processes, proactive planning, and the right HCM strategies in place, you can bring this year to a close on your terms and start the next one with confidence.

At Vintage Hill Consulting, we specialize in helping organizations optimize their HR, payroll, and HCM systems during high-impact moments like these. Whether you need support with system configuration, compliance, or strategic planning, we’re here to help you finish strong- and start 2026 stronger.