We're Here to Help You Navigate
Year-End Successfully

As you enter the busy holiday season, we're here to guide you to end 2024 strong and step into 2025 with a great start. We make the tedious process of year-end easier for busy employers like yourself. We will take care of the details, and alert you of key dates and deadlines you should be aware of during this busy season. 

✨ Your 2024 Year-End Checklist ✨

Every business has unique year-end reporting needs, and you may need to provide ProService with additional information that affects W-2 Forms. Use this checklist to help you determine what you need to do this year-end season.

📌 Take 5 minutes to review the scenarios that apply to your business. Then, get all the answers you need on the drop downs below – including key action items and deadlines.

Are you planning to provide your employee(s) with a year-end bonus?

If you'd like to give your employees a special year-end bonus, complete and submit this Bonus Request Form to your Service Team by Friday, December 6. You can give your employee a year-end bonus as part of their regular payroll, or as a separate payment from their regular paychecks. We can also help you with gross-up calculations. If you want to deliver bonus checks in a fun and memorable way, read this article for tips and more.


Do you want to make a contribution to employee retirements plans?

Another way to celebrate your employees' hard work is to contribute extra employer contributions to their retirement plans. If you’d like to do this, please let your Service Team know by Friday, December 13. If you are the owner of your business, and you’d like to maximize your contribution to your own retirement plan for 2024, please also let your Service Team know by the date above.

Do you have any taxable employee benefits or payroll adjustments to report?

In general, the IRS has specific tax treatments for certain employee benefits that we need to apply and report accordingly on employee W-2 Forms. Additionally, we must adjust employee compensation based on any payroll adjustments you notify us about to ensure W-2s are prepared accurately. 

If any of the following items apply to your business, please report them to your Service Team and provide appropriate documentation by Friday, December 13. If you are unsure, please consult your CPA or tax advisor and see if any of the items below apply to your company and should be shared with us.

Employee Benefits

  • Use of a Company Vehicle
  • Moving Expenses 
  • Group Term Life Coverage (exceeding $50,000)
  • Long-Term Disability Payments
  • Any Schooling/Course paid by your company that’s unrelated to the employee’s job
  • Non-Accountable Business Expense Reimbursements or Allowances
  • Non-Cash Payments (e.g. gift cards)
  • Other Compensation (Any compensation paid outside of ProService)

Employer Contributions

  • To Healthcare Premiums (not administered by ProService)
  • To Retirement Plans (not provided by ProService/TransAmerica)
  • Health Insurance Premiums by an S-Corp to 2% Shareholder/Employees (not administered by ProService)

Payroll Adjustments

  • Checks paid through your A/P (that were not reported to ProService)
  • Checks for overpayments or bonuses that should not be paid/voided

Information for S-Corporations

  • For all of our S-Corp Principals that are on our health plans, we will report the health insurance on the W-2 forms. If you have an outside health insurance plan, please report your amounts to your Payroll Coordinator to be recorded on your W-2 by December 13.
Is your employer information out-of-date?

Has your company’s legal name, ownership status, mailing address, or taxpayer ID numbers changed in 2024? As a best practice, please ensure this information is correctly reported in your HR platform. If any, please share updated information with your Service Team by Friday, December 13. This information is necessary for us to prepare employee W-2 Forms and file corresponding forms with the IRS, SSA, and state/local tax agencies on your behalf.  

Are employee names, mailing addresses, and SSN out-of-date?

Have your employees changed their legal name, mailing address, or social security number? If so, please remind employees to update their information by Friday, December 13

As a best practice, we recommend all employees double-check that their correct information is reported in their HR platform. For assistance on how to log in to their HR platform to make updates, employees can call the ProService Employee Service Center at 808-394-4162 from Monday – Friday, 8 am – 5 pm,  for assistance.

📣 Help us stay on track! Outdated employee information could result in delays in preparing employee W-2 Forms or Form W-2 C, which is a corrected wage and tax statement that will be issued in February. Additionally, since W-2 Forms contain sensitive information, mailing this tax form to an employee’s old address is a situation we’d like to avoid but we need your support to remind employees. 

Do you have third-party sick/TDI payments to report?

If you have third-party sick or Temporary Disability Insurance (TDI) payments to report, please send your 2024 Disability Income Report(s) from your third-party administrator to your Service Team by Friday, December 27. Third-party sick/TDI pay will be reported on employees’ W-2s.

Note: If you have Pacific Guardian or USAble, they will issue their last claims check of the year on December 18 and Year End reports will be issued to clients on December 20.

Do you have out-of-state employees?

Starting in December, you will receive notifications from state agencies about your 2025 State Unemployment Insurance (SUI) rates in that state. Please share these state UI rate notifications with your Service Team by Friday, December 27. This information will be used to prepare your first payroll of the year.

Note: Each state has a different way of delivering rate notifications to businesses. You may receive a letter in the mail or be able to retrieve this information online if the state agency notifies you that SUI rates are only available electronically. If you have employees in Washington State, notifications aren’t distributed until January 1, 2025.

Learn about new laws that may impact you and your employees in the FAQ section.

🗓️ Important Year-End Deadlines to Know
  • Fri, 12/6 – Submit your Bonus Request Form if you plan to give a bonus
  • Fri, 12/6 – Make an employer contribution to retirement plans
  • Fri, 12/13 – Submit taxable employee benefits or payroll adjustments
  • Fri, 12/13 – Update or change employee contact/mailing addresses  
  • Fri, 12/20 – Submit employee SSN changes
  • Fri, 12/20 – Submit third-party sick/TDI reports 
  • Fri, 12/27 – Submit any out-of-state unemployment rate notices

📣 Help us stay on track! The deadlines listed in our 2024 Year-End Payroll Checklist are critical for helping us get accurate W-2 Forms into the hands of your employees by January 31, 2025. Missing a deadline could result in your employees receiving their W-2 after January 31. It may also result in Form W-2 C, corrected wage and tax statements, which will be prepared and sent to employees in February.

📢 Important Information for S-Corporations

For S-Corp Principals who are on our health plans, we will report the health insurance on the W-2 forms for you. If you have an outside health insurance plan, please report your amounts to your Payroll Coordinator to be recorded on your W-2 by December 13.

The cost of premiums for health insurance coverage provided by an S-Corporation to its 2% shareholders, will be recorded on the W-2s. Family members of the shareholders will have their health insurance coverage reported on the W-2s for taxation purposes. Family members will include spouse, child, grandchild, or parents, per the rule of attribution of ownership rules in section 318(a)(1)(A) of the IRS code. 

A 2% shareholder is someone who directly or indirectly owns more than 2% of the corporation’s stock or stock with more than 2% of the voting power. S-Corp Principals enrolled in a ProService Hawaii administered health care plan will have health care premiums reported on their W-2.

Get Your Holiday Payroll Calendar

Please make note of changes in pay dates and timesheet submissions! Let’s work together to ensure employee paychecks are processed on-time and stress-free during the holidays.

Get Your 2025 Payroll Calendar

2025 Weekly, Bi-Weekly, or Semi-Monthly schedules can be downloaded here! 

Please read the description below each graphic to confirm that it matches your pay schedule for the coming year. For additional assistance with payroll calendars, please reach out to your Service Team directly.

Weekly Pay Schedules

  • Pays weekly, every Thursday
  • First Pay Date in 2025: Jan. 2
  • Pays weekly, every Friday
  • First Pay Date in 2025: Jan. 3

Bi-Weekly Pay Schedules

  • Pays every 2 weeks on a Friday
  • First Pay Date in 2025: Jan. 3
  • Pays every 2 weeks on a Friday
  • First Pay Date in 2025: Jan. 10

Semi-Monthly Pay Schedules

  • Pays on 5th and 20th of every month
  • First Pay Date in 2025: Jan. 5
  • Pays on 7th and 22nd of every month
  • First Pay Date in 2025: Jan. 7
  • Pays on 15th and end date of every month
  • First Pay Date in 2025: Jan. 15

Year End FAQs

 More questions? Read our FAQ for employers and employees.

Year-End FAQs For Employers:

Here is the list of new caps and limits for 2025:

Wage Caps for Payroll Taxes

Wage caps refer to the maximum amount of an individual's income that is subject to a particular tax or benefit calculation.

  • Social Security Increases from $168,000 to $176,100
  • Medicare (no change) – $200,000
    • Anything over $200,000, employees pay an additional 0.9%
  • FUTA (no change) – $7,000.00
Retirement Plan Contribution Limits

Retirement plan contribution limits refer to the maximum amount of money an individual can contribute to a retirement savings account within a given tax year. They are designed to ensure that individuals do not disproportionately benefit from tax advantages for retirement savings. If contributions exceed these limits, there may be tax penalties or consequences.

  • 401K, 403b, 457 plans – $23,500
  • 401K, 403b, 457 catch-up plans – $7,500 (no change)
  • Simple IRA/401K plans – $16,500
  • Simple IRA/401K catch-up plans – $3,500 (no change)
  • IRA after-tax – $7,000
  • IRA after-tax catch-up – $1,000 (no change)
  • Qualified Plans Compensation Limit – $350,000
  • Defined Contribution Maximum Annual Addition – $70,000
Flexible Spending Account (FSA) Contributions Limits

FSAs are tax-advantaged financial accounts that allow employees to set aside a portion of their pre-tax earnings to cover eligible medical expenses. FSA contribution limits refer to the maximum amount an individual can elect to contribute to their FSA during a specific plan year.

  • Health Care FSA – $3,300
  • Dependent Care Account  – $5,000.00 (no change)
  • Parking/Transit Account – $325/month
Health Spending Account (HSA) Contributions Limits

HSAs are tax-advantaged financial accounts available to individuals enrolled in a high-deductible health plan (HDHP). It allows them to set aside money on a pre-tax basis to pay for qualified medical expenses. HSA contribution limits refer to the maximum amount an individual or family can contribute to their HSA in a tax year.

  • Single Coverage – $4,350
  • Family Coverage – $8,550

The next increase for Hawaii is on January 1, 2026, when the minimum wage and tip credit in Hawaii will increase to $16 per and $14.75 per hour for tipped employees.

Resource for employers:

Starting January 1, 2024, Hawaii's new pay transparency law goes into effect. This law applies to employers with 50 or more employees and mandates that the hourly rate or salary range be included in all job listings. Hawaii's pay transparency law follows similar laws recently enacted in California, Colorado, and New York, intending to reduce pay inequality in the workplace. Not only does it benefit job applicants, it also benefits current employees by giving them visibility into wage ranges of open positions, enabling them to seek higher compensation, thereby helping to further reduce pay inequalities.

Resources for employers:

As your HR partner, we're delighted to offer you a complimentary Hawaii Labor Law poster to share with your employees. A printed poster will be mailed to your company and a digital version will be available online by January 31, 2025.

2024 W-2 forms will be mailed directly to employees and postmarked no later than Friday, January 31, 2025. Electronic copies will also be available to employees on their HR platform. Please remind your employees to ensure we have their current name, mailing address, and SSN on file by Friday, December 13. If they need assistance updating their information in their HR platform, employees can call the ProService Employee Service Center at 808-394-4162 from Monday – Friday, 8 am – 5 pm, for assistance.

Your employees can update their contact information and mailing address in your HR platform. If your employees have changes to their SSN or need assistance logging in to their HR platform, please have them contact the ProService Employee Service Center at 808-394-4162 from Monday – Friday, 8 am – 5 pm.

Yes, employers should review their accommodation policy and procedures. The Pregnant Workers Fairness Act (PWFA) went into effect in June 2023. The PWFA requires a covered entity to provide reasonable accommodations to a qualified employee's or applicant's known limitations related to, affected by, or arising out of pregnancy, childbirth, or related medical conditions, absent undue hardship on the operation of the business of the covered entity. The PWFA applies to private and public sector employers with 15 or more employees. To ensure compliance with the PWFA, employers should review their accommodation policy and consider additional training for employees that manage accommodation requests. More information on the PWFA can be found here. If you have any questions, please contact your ProService HR Consultant for support and tailored guidance.

Beginning on January 1, 2025, the Executive Order 14026 minimum wage rate that generally must be paid to workers performing work on or in connection with covered contracts will increase to $17.75 per hour. More information regarding minimum wage can be found here.

Depending on the state and the language of the agreement, non-compete agreements may or may not be permissible. In Hawaii, non-compete agreements for technology businesses are prohibited. Outside of the technology sector, a non-compete agreement must follow criteria set forth in Hawaii law. Specifically, the agreement: (1) must be reasonable in duration, geographic scope, and scope of restricted activities, (2) must protect a legitimate business interest, such as trade secrets and confidential information and (3) cannot violate public policy.

Additionally, several federal agencies have issued positions regarding non-compete provisions in employment agreements. In April 2024, the Federal Trade Commission (FTC) issued a new rule banning nearly all non-compete clauses nationwide. The ban was supposed to go into effect in September 2024. However, a court ruled that the ban could not go into effect. The FTC has challenged this ruling on appeal. In late 2024, General counsel for the NLRB issued a memorandum to her staff outlining her plan to penalize employers for illegal non-compete agreements. NLRB General Counsel has determined that it is unlawful for employers to maintain non-compete agreements with non-supervisory employees, except in narrow circumstances involving employees with proprietary information. The full memorandum can be found here. The General Counsel’s memorandum is part of the NLRB’s larger position regarding agreements with employees. The NLRB has determined it is unlawful for employers to enter into confidentiality or non-disclosure agreements in certain situations for NLRA-covered employers. The NLRB has also found it unlawful for employers to prohibit non-supervisory employees from discussing their terms of employment with third parties.

In light of recent agency actions, employers take inventory of all employment agreements. To ensure compliance, employers should take a closer look at non-compete or “stay to pay” provisions. Non-compete provisions should be supported by a legitimate business interest, which should be articulated in the policy. Employers should consider offering training regarding non-compete or “stay or pay” employment agreements. If you have any questions, please contact your ProService HR Consultant for support and tailored guidance.

Employers should use the version of the I-9 Form released in August 2023, which can be found here: https://www.uscis.gov/i-9. The expiration date for the form was extended to May 31, 2027. While forms with the July 31, 2026 and May 31, 2027 expiration dates may be used, the USCIS recommends using the forms with the May 31, 2027 expiration date.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 is a law that was signed into effect at December of 2022 to encourage Americans to save for retirement. The law includes a number of changes that affect retirement plans, including 40(k), 403(b), IRA, and Roth accounts. This Transamerica flyer covers the key highlights of Secure Act 2.0. You can also visit Transamerica’s website for more information.


If you have a 401(k) plan under the ProService Hawaii multi-employer plan, we will continue to communicate to you any updates that may impact your plan. You may also contact the Retirement Department at [email protected] or at 808-394-4169 for any questions regarding Secure Act 2.0.
If you are maintaining a retirement plan with another recordkeeper, we recommend that you reach out to them directly for more guidance.

Year-End FAQs For Multi-State Employers:

California – In 2025, there are several new laws and expansion of existing laws going into effect, including but are not limited to:

  • California State & Local Minimum Wage Increase
  • California Worker Freedom from Employer Intimidation Act
  • Expanded leave for victims of violence
  • Driver’s license requirements in job postings
  • Expanded access to Paid Sick Leave
  • Workers’ compensation notice to employees
  • Whistleblower posting
  • For more information, download the California Legislative Update here.

Colorado – In 2025, there are several new laws and expansion of existing laws going into effect, including but not limited to:

  • Protections for Delivery-Network drivers
  • Changes to non-compete laws
  • Changes in AI, privacy and health benefits coverage
  • Small employer health insurance designation
  • Stay tuned for additional information on Colorado legislative updates

Illinois – In 2025, there are several new laws and expansion of existing laws going into effect, including but not limited to:

  • Increased minimum wage
  • Pay transparency
  • AI restrictions
  • Pay stub requirements
  • Illinois Personnel Record Review Act
  • Illinois Worker Freedom of Speech Act
  • Right to Privacy in the Workplace Act
  • Secure Choice Savings Program
  • For more information, download the Illinois Legislative Update here.

Minnesota – In 2025, there are several new laws and expansion of existing laws going into effect, including but not limited to:

New York – In 2025, there are several new laws and expansion of existing laws going into effect, including but not limited to:

Oregon – In 2025, there are several new laws going into effect, including Oregon minimum wage increases and warehouse employee protections. For more information, download the Oregon Legislative Update here.

Washington – In 2025, there are several new laws and expansion of existing laws going into effect, including but not limited to:

Five states and Puerto Rico have mandated State/Temporary Disability Insurance paid by the employer or employee. The Temporary Disability Insurance is part of a tax deduction and is paid with the Unemployment at the end of the quarter. Click here to learn more about 2025 Disability Chart for Employer and Employee Contributions.

FUTA Reduction Credit
FUTA stands for the Federal Unemployment Tax Act, a federal law that imposes a tax on employers to fund unemployment benefits. The standard FUTA tax rate is 6.0% on the first $7,000 of each employee's wages. However, if a state has no outstanding federal loans for unemployment benefits, the FUTA tax rate is effectively 0.6% due to the FUTA tax credit (6.0% – 5.4% credit). Currently, there are two states that have not fully paid back their federal loan and will lose the full FUTA tax credit: California and New York. If you have employees in California or New York, you could be charged an additional 0.9% on employees’ wages, which comes to approximately $63.00/employee.

Note: As a ProService client, you don't have to make any changes. We will reconcile the employees in each of those states once the final list comes out around the week of Nov. 11. Billing for the extra $63.00/employee will appear on your invoice in December. The extra amount will be reported and paid on your normal FUTA 940 return by January 31, 2026.

Outside of Hawaii, several states including California, Minnesota, North Dakota, and Oklahoma have banned non-compete agreements. Other states, such as Colorado, Illinois, Maine, Maryland, New Hampshire, Oregon, Rhode Island, Virginia, and Washington, have prohibited non-compete covenants for certain categories of employees.

Additionally, several federal agencies have issued positions regarding non-compete provisions in employment agreements. In April 2024, the Federal Trade Commission (FTC) issued a new rule banning nearly all non-compete clauses nationwide. The ban was supposed to go into effect in September 2024. However, a court ruled that the ban could not go into effect. The FTC has challenged this ruling on appeal. In late 2024, General counsel for the NLRB issued a memorandum to her staff outlining her plan to penalize employers for illegal non-compete agreements. NLRB General Counsel has determined that it is unlawful for employers to maintain non-compete agreements with non-supervisory employees, except in narrow circumstances involving employees with proprietary information. The full memorandum can be found here: NLRB Memo. The General Counsel’s memorandum is part of the NLRB’s larger position regarding agreements with employees. The NLRB has determined it is unlawful for employers to enter into confidentiality or non-disclosure agreements in certain situations for NLRA-covered employers. The NLRB has also found it unlawful for employers to prohibit non-supervisory employees from discussing their terms of employment with third parties.

In light of recent agency actions, employers take inventory of all employment agreements. To ensure compliance, employers should take a closer look at non-compete or “stay to pay” provisions. Non-compete provisions should be supported by a legitimate business interest, which should be articulated in the policy. Employers should consider offering training regarding non-compete or “stay or pay” employment agreements. If you have any questions, please contact your ProService HR Consultant for support and tailored guidance.

In addition to Hawaii, California, Colorado, Connecticut, Illinois, Massachusetts, Maryland, Minnesota, Nevada, Nevada, New York, Rhode Island, Vermont, Washington and Washington D.C. have enacted pay transparency laws. Some cities including those in New York, New Jersey and Ohio have their own requirements. Here are new laws going into effect in 2025:

  • Illinois: Effective January 1, 2025, amendments to the Illinois Equal Pay Act will require that employers with 15 or more employees disclose “pay scale and benefits” in all job postings. An employer must make and keep records of the pay scale and benefits for each position, as well as the job posting for each position. Records must be kept for a minimum period of five years.
  • Massachusetts: Effective October 29, 2025, employers with 25 or more employees will be required to disclose pay ranges. Additionally, employers with one hundred or more employees and subject to EEO-1 reporting obligations will be required to report aggregated wage data as a supplement to the EEO-1 report to the state. First report must be submitted by February 1, 2025.
  • Minnesota: Effective January 1, 2025, employers with 30 or more total employees in Minnesota will be subject to Minnesota’s new pay transparency requirements.  Covered employers will be required to include in all job postings a starting salary range, or if no range, a fixed pay rate.
  • Vermont: Effective July 1, 2025, employers of 5 or more employees must ensure that any advertisement for a Vermont job opening includes the compensation or range of compensation for the job opening.
Minimum Wage

Minimum wage is increasing for most states in 2025. Employees that are working in those states will automatically be updated with the new state minimum wage effective on January 1, 2025. You can learn more about out-of-state minimum wage increases here.

Local Minimum Wage

There are states that have local minimum wage increases for the 2025 year. Employees that work in these cities/counties will automatically be updated with the new locality minimum wage effective on January 1, 2025. To see which locality has an increase in minimum wage refer here.

Family & Medical Paid Leave Insurance

Every year, more states add Family & Medical Paid Leave Insurance benefits. As of 2025, 14 states and Washington D.C. have (or will have) state-required/voluntary paid leave for an employee's medical condition and/or paid family leave for bonding with a new child, caring for a seriously ill or injured family member, and certain other purposes. This includes California, Colorado, Connecticut, Delaware, Maine, Maryland, Massachusetts, Minnesota (effective 2026), New Hampshire (voluntary), New Jersey, New York, Oregon, Rhode Island, Virginia (voluntary), Washington, and Washington D.C. Despite some common elements, what is covered, who is eligible, and who contributes to the fund varies by state. Employee payroll deductions usually fund this benefit (except in Washington D.C. where employers fully fund it). In other states, Family & Medical Paid Leave Insurance is partially funded through employer payroll deductions based on employee headcount.

  • Delaware – Starting January 1, 2025, Delaware has been newly included in the list of states implementing a PFML tax requirement. Employers are responsible for 100% of the contributions under the plan, but the State allows the employer to require their employees to pay up to (but no more than) half of their contributions. The required coverages provided by each employer depends on their Employee Count that works in the state (click here to view table). Employers and employees pay a family-leave insurance contribution on wages up to the federal Social Security cap ($176,100) for 2025. PFML resources for Delaware: Employer Page | FAQs
  • Maine – Starting January 1, 2025, Maine has been newly included in the list of states implementing a PFML tax requirement. In January, all employers will be required to register in the Paid Leave Portal. If you have a payroll provider, you can designate them during the registration process. Employers with one or more employees working in the state between October 1, 2023 and September 30, 2024 are required to withhold the Paid Family Medical Leave tax. Employers are responsible for 100% of the contributions under the plan, but the employer may withhold up to 0.5% of your employees’ wages with advance notice. The wage base is capped up to the Federal Social Security cap ($176,100) for 2025. Rates access are by employee count (click here to view table). PFML resources for Maine: Employer Page | What Employers need to know | FAQs
  • Maryland – As has pushed back their start date of Paid Family Medical Leave. The FAMLI Division expects the online web application to open by the Spring of 2025. Beginning on July 1, 2025, employers with one or more employees working in the state are required to withhold the Paid Family Medical Leave tax. Reporting these contributions will begin on October 1, 2025. Employers will need to register with the State through an online web application. The wage base is capped up to the Federal Social Security cap ($176,100) for 2025. Rates access are by employee count (click here to view table). PFML resources for Maryland: Employer Page | Employer FAQs | Claims FAQs | Employee Page
  • Massachusetts –Effective January 1, 2025, Massachusetts premium rate will stay the same 0.88%, up to the Social Security cap ($176,100) for 2025. The contribution is divided into a medical leave contribution, which is 0.7% for 2025, and a family leave contribution, which is 0.18% for 2025. All of the family leave contributions can be withheld from employees’ pay, while up to 40% of the medical leave contribution, or 0.28%, can be withheld. Employers must pay at least the other 60%, or 0.42%, of the medical leave contribution. Employers with fewer than 25 employees do not have to pay the required employer share of the medical leave contribution, so their contribution rate is 0.46% for 2025.
  • Minnesota – Enacted Paid Leave contribution will start in 2026. Premium rates have not yet been set. Employers will contribute a minimum of 50% of the total premium, but can choose to pay up to 100%. More to come as information is available. Keep up to date by visiting the Employer Page.
  • Oregon – Beginning January 1, 2025, the premium rate stays the same 1% of wages, up to the Social Security cap ($176,100) for 2025. Employers pay 60% and the employees pay 40%. For employers with 24 or fewer employees, contributions are only paid by the employee. For employers with 25 or more employees working for them, contributions are paid by employer and employee.
  • Washington – Beginning January 1, 2025, Washington premium rate is increasing from 0.74% to 0.92%, up to the Social Security cap ($176,100) for 2025. For employers with at least 50 employees, the new arrangement mandates that they contribute 28.48% of the premium rate, with employees responsible for the remaining 71.52%. Employers with fewer than 50 employees are relieved from the obligation of paying the employer portion of the premium. However, they are still required to withhold and remit the employee portion..

There is no federal legal requirement for paid sick leave. To fill this gap, several states and localities have enacted their own job-protected paid leave. Arizona, California (Berkley, Emeryville, Long Beach, Los Angeles, Oakland, San Francisco, San Diego, Santa Monica and West Hollywood) Connecticut, District of Columbia, Illinois (Chicago and Cook County), Maine, Maryland (as well as Montgomery county), Massachusetts, Michigan, Minnesota (Bloomington, Duluth, Minneapolis, Saint Paul), Nevada, New Jersey, New Mexico (Bernalillo County), New York (New York City and Westchester county), Oregon, Pennsylvania (Allegheny County, Philadelphia and Pittsburgh), Rhode Island, Vermont, Virginia, and Washington (SeaTac, Seattle and Tacoma) are among the states and localities with paid sick leave laws. There are several expansions of laws going into effect in 2025:

  • Alaska: In the most recent election, a majority of Alaska voters appeared to have voted in favor of creating a new statewide paid sick leave law that would go into effect on July 1, 2025.
  • California: Effective January 1, 2025, California will expand sick leave protections. California passed AB-2499 which expanded safe time uses of paid sick time, extended the types of crimes covered by sick leave and added leave for employees with a family member who is a victim of a crime. California also pased SB 1105, which allows agricultural workers to use sick time in case of smoke, heat or flooding conditions caused by local or state emergency. More information on California sick leave can be found here: https://www.dir.ca.gov/dlse/paid_sick_leave.htm.
  • Connecticut: Effective January 1, 2025, Connecticut will expand the number of employers covered by its paid sick leave law and increase the number of hours employees can earn. Starting January 1, 2025, employers with 25 employees must provide their employees with paid sick leave. Under the new law, employees will accrue one hour of paid sick leave for every 30 hours worked, up to a maximum of 40 hours per year. Employers may grant more time off or allow accrual at a faster rate. More information on Connecticut’s sick leave law can be found here: https://portal.ct.gov/governor/news/press-releases/2024/05-2024/governor-lamont-signs-legislation-expanding-paid-sick-days-laws?language=en_US.
  • Chicago, Illinois: Beginning in July 1, 2024, the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance entitled eligible employees to accrue up to 40 hours of paid leave and up to 40 hours of paid sick leave in a 12-month period and carryover certain leave into the next year. Eligible employees will begin to accrue 1 hour of paid leave and 1 hour of paid sick leave for every 35 hours worked after July 1, 2024, or their first day of employment, whichever is later. Employees may carry over up to 80 hours of paid sick leave and up to 16 hours of paid leave from one 12-month accrual period to the next. In the alternative, employers may frontload either or both paid leave and/or paid sick leave by giving the employee the full 40-hour paid leave or paid sick leave benefit upfront. New pay out leave requirements for medium employers and new enforcement remedies, including ability to initiate litigation, go into effect on July 1, 2025. More information on Chicago’s paid sick leave can be found here: https://www.chicago.gov/content/dam/city/depts/bacp/OSL/PLPS%20One%20Pager.pdf.
  • Michigan: Effective February 21, 2025, all Michigan employers must comply with Earned Sick Time Act. The Earned Sick Time Act will entitle all employees to accrue one hour of earned sick time for every 30 hours worked. Accrual begins on February 21, 2025, or upon commencement of the employee's employment, whichever is later. Any unused earned sick time carries over from year to year. However, an employer is not required to permit an employee to use more than the annual allowed maximum time (paid or unpaid) in a 12-month period. Although not clear in the law, it appears the employer may provide the total amount of paid sick leave at the beginning of the benefit year, provided it complies with the accrual, use, carryover, and other provisions of the ESTA during the benefit period. More information on Michigan’s Earned Sick Time Act can be found here: https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/paid-medical-leave-act.
  • Minnesota: Effective January 1, 2025, all paid time off and other paid leave made available to an employee by an employer in excess of the minimum amount required for absences from work due to personal illness or injury (excluding short-term or long-term disability or other salary continuation benefits) must meet or exceed the law’s minimum standards and requirements. An employee earns one hour of sick and safe time for every 30 hours worked and can earn a maximum of 48 hours each year unless the employer agrees to a higher amount. More information on sick leave can be found here: https://www.dli.mn.gov/sick-leave.
  • Missouri: In the most recent election, a majority of Missouri voters appeared to have voted in favor of creating a new statewide paid sick and safe time law that would go into effect on May 1, 2025.
  • Nebraska: In the most recent election, a majority of Nebraska voters appear to have voted in favor of creating a new statewide paid sick leave law that would go into effect on October 1, 2025.
  • New York: In addition to sick and safe leave, employers must provide paid prenatal leave. Effective January 1, 2025, employers must provide qualifying employees with up to 20 hours of paid prenatal leave per 52-week period. The state's budget for fiscal year 2025 also includes new requirements for employers to provide paid lactation breaks. More information on New York paid leave can be found here: https://paidfamilyleave.ny.gov/.
  • Washington: Effective January 1, 2025, there are several expansions to the Washington. The expanded law will allow the use of sick leave when there is a closure as the result of the declaration of an emergency by a local or state government or agency, or by the federal government. The expanded law also revises the definition of family member to “any individual who regularly resides in the employee’s home or where the relationship creates an expectation that the employee care for the person, and that individual depends on the employee for care.” More information on Washington’s paid sick leave can be found here: https://www.lni.wa.gov/workers-rights/leave/paid-sick-leave/.

As your HR partner, we're delighted to offer you a complimentary Digital Labor Law poster (PDF) which will be available by January 31 to share with your out-of-state employees. Please expect an email from us in mid-January letting you know when they are available.

For a workforce with only remote employees, providing a digital labor law poster will likely satisfy the compliance requirement in lieu of a physical poster if employees customarily receive information via electronic means and employees readily have available access to the electronic posting. If employees work exclusively on site, employers should display the poster in a physical workplace. If an employer has a hybrid of on-site and remote workers, employers should display a physical poster and post the poster electronically.

Year-End FAQs For Employees:

You can update your contact information, mailing address, and SSN in your HR platform. For assistance logging in to your HR platform, please call the ProService Employee Service Center at 808-394-4162 from Monday – Friday, 8 am – 5 pm. Please update your information by Friday, December 13

W-2 forms will be prepared using the information in our platform by mid-December. If your information is outdated or incorrect, it could impact the accuracy of your W-2 Form, and we may need to generate a Form W-2 C, a corrected wage and tax statement for you, which will be issued in February and affect when you can file your taxes. In addition, W-2 Forms contain sensitive information. We want to protect your privacy by not mailing your tax form to an old address. Please ensure your information is up-to-date in your HR platform by Friday, December 13, to ensure timely and accurate processing of your W-2. If you need assistance, please contact the ProService Employee Service Center at 808-394-4162 from Monday – Friday, 8 am – 5 pm. 

To change how much federal income tax is withheld from your paycheck, you can update your W-4 form. Typically, it’s recommended that you review your federal tax withholding every year. Why? This is because personal circumstances and financial situations can change. Life events such as marriage, divorce, having children, changes in employment, or significant changes in income can all impact your tax liability. By reviewing and potentially adjusting your W-4 withholdings, you can ensure that the right amount of taxes is taken out of your paychecks throughout the year. Please note that ProService cannot advise what you should select and indicate on your W-4 form. Should you have any questions about completing the form, we recommend consulting a licensed tax professional or using the IRS's Tax Withholding Estimator.

If you claimed “exempt”’ for Federal income tax withholdings last year, you must provide a new, completed 2025 W-4 Form to ProService. If you submit a paper form, please provide your completed W-4 Form to ProService by January 31, 2025, so we can submit the form to the IRS by the February 15 deadline. If you do not submit a new W-4 Form by the deadline, ProService will automatically change your Federal tax withholding to “Single” and federal income taxes begin to be withheld from your paycheck.

If you received unemployment benefits in 2024, you will receive a 1099-G Form from the State Unemployment Office to file with your 2024 individual tax returns. The 1099-G will be mailed directly to you before January 31, 2025. The form can also be found on your online UI account under “Claim Inquiry” and selecting “1099-G”.  As a reference, the Hawaii State UI Division tax withholding ID is 093-185-7408-01. This ID will appear on your Form 1099-G from the State Unemployment Office.

More Year-End Resources!

Get advice and information for businesses in Hawaii. 

Have Questions? We're Here to Help!

If you're a ProService client, contact your Service Team. They are happy to assist you! If you're an employee of a ProService client, call our Employee Support Center at (808) 394-4162 from Monday – Friday, 8 am – 5 pm, for assistance.

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