Employers: What you can do to prepare for 2022

This year has been rife with challenges for businesses and individuals. Turning the page to a new year gives everyone a chance to start again and refocus on their goals.

If you are an employer, now is an excellent time to prepare yourself, your employees and your business for 2022. 

Review your employment policies and agreements

You need not wait until an issue or dispute arises with your employees to review your existing policies and contracts. Factors employer may want to examine include:

  • Severance agreements
  • Employee categorization
  • Employee handbooks
  • Payroll data
  • Employment contracts

Going over these components now allows you to make changes that align with new rules or regulations that go into effect next year, such as the expansion of rights under the California Family Rights Act. Being proactive can also help you prepare to meet the March 2022 deadline for providing pay data reports.

When you review these things now, you can prevent employment disputes and compliance issues.

Address tax requirements

In the coming weeks, employers will need to make tax payments, provide employees with tax reports and file taxes. You can make this much less stressful by starting preparations now. Depending on your business and financial resources, you might:

  • Address financial inefficiencies
  • Take advantage of year-end opportunities for tax deductions
  • Examine options for deferring payments or expenses
  • Organize financial paperwork
  • Closeout debts

Employers can work with financial professionals to address these tax-related matters to prepare for 2022.

Examine plans for 2022

If the last two years have taught California business owners anything, it is that there can be immense value in flexibility. Allowing for remote work opportunities, expanding digital or virtual services and increasing pay to attract workers are all ways businesses have pivoted over the last year.

Thus, now can be a good time to review the operational plans and resourcing strategies that are in place for next year. Are they still appropriate, given today’s business climate? Are there solutions that may be more or less desirable in 2022 based on the successes or challenges of this year?

No one knows exactly what 2022 will hold. However, taking these steps now can allow employers to better position California businesses for success in the coming year.