New Year, New Rules: 5 Payroll & HR Tasks Florida Businesses Should Tackle in January
- lacey3425
- Jan 22
- 3 min read
New Year, New Rules: 5 Payroll & HR Tasks Florida Businesses Should Tackle in January
The first few weeks of the new year might feel quiet—but behind the scenes, it’s one of the most important times for small business owners to get their payroll and HR in order.
January sets the tone for the rest of the year. If your records are messy, your classifications are off, or your deadlines are missed, those issues won’t stay quiet for long—and they’ll be harder (and more expensive) to fix later.
At AYS Employee Leasing, we work with Florida businesses every day to make sure their back office runs as smoothly as their front. Here’s your essential January 2026 checklist to stay compliant, reduce risk, and start the year strong.
1. Make Sure W-2s Are Sent by February 1 (No, That’s Not a Typo)
Due to January 31 falling on a Saturday in 2026, the official IRS W-2 deadline is Monday, February 2, 2026.
But don’t wait until the last minute. W-2 forms must be postmarked or electronically delivered by the deadline—not “in progress.” And don’t forget about W-3 forms (summary transmittal to the SSA), which are due at the same time.
Also double-check that each employee’s address, SSN, and wage totals are correct. A small error can delay their filing and create headaches for your team (and yours truly).
Need help? AYS clients have these forms generated, filed, and handled. It’s part of the package.
2. Confirm Employee Classifications (W-2 vs. 1099)
Misclassifying employees is one of the most common—and costly—mistakes Florida businesses make. And January is the best time to catch it before new hires or rehires get processed the wrong way.
Here’s the difference in a nutshell:
W-2 employees: You control how, when, and where they work. You’re responsible for payroll taxes.
1099 contractors: They control their work, their schedule, and use their own tools. You don’t withhold taxes.
Watch out for these red flags:
1099s working full-time hours
Contractors using company tools or email
Workers you let go who come back in “as a 1099”
If you’re not sure, AYS helps reclassify roles and correct codes, especially for workers’ comp accuracy. It’s better to fix it now than face penalties during an audit.
3. Review Workers’ Comp Codes and Payroll Totals
Workers’ compensation audits often begin with your reported class codes and payroll amounts. If these don’t match your actual records, you could be looking at surprise charges, fines, or worse.
In January, take time to:
Check that each employee is assigned to the correct class code (especially if they wear multiple hats)
Update payroll totals to reflect actual hours worked
Ensure accurate OT and tipped wages are included in your calculations
Why it matters: Carriers use this data to calculate your premium—and if your info is off, your rate will be too.
At AYS, we reconcile this monthly for our clients, so audits are low-stress and accurate. If your provider doesn’t offer that, let’s talk.
4. Update PTO Policies and Carryover Balances
If your business offers paid time off, now is the time to update carryover balances, reset banks (if applicable), and notify employees of their remaining or renewed hours.
Florida doesn’t require PTO payout or rollover—but your internal policy does. Make sure:
You have documentation of your PTO policy in your employee handbook
Employees receive written confirmation of their balance
Any changes (like switching to accrual-based PTO) are clearly communicated
A lot of January HR confusion comes from untracked vacation hours and unclear policies. Don’t start the year off with a paperwork mess.
5. Revisit Your Payroll Schedule, Deductions, and Rates
The start of the year is ideal for adjusting:
Pay rates (minimum wage in Florida rises annually on Sept 30, but many raises roll out in January)
Deductions (health insurance, garnishments, retirement contributions)
Pay frequency (some employers adjust schedules in Q1 to align with cash flow or seasonal staffing)
And while you’re at it, run a quick audit:
Are all tax rates and SUTA rates up to date?
Have any banking or routing numbers changed?
Is your payroll provider responsive and accurate?
Because if they’re not, it’s going to be a long year.
Start 2026 With a Strong Payroll Foundation
January is the month of fresh starts. And while it’s easy to get distracted by marketing goals or growth plans, the best thing you can do for your business this month is clean up what’s under the hood.
Let AYS Employee Leasing help you do it right. We’ll make sure your W-2s are filed, your classifications are clean, your PTO is tracked, and your compliance is locked down.
No surprises. No stress. No scramble in Q4.
Contact AYS Today
(772) 360-4195
Let’s make 2026 your cleanest, easiest year yet.