Business Owners Guide to Seasonal Hiring

Summer is here and with it brings a multitude of teens, college students and many others looking for employment. Better Business Bureau reminds employers that hiring seasonal workers – regardless of age, involves following many of the laws and regulations that apply to full-time employees.

If you’re hiring seasonal employees, keep in mind:

• State child labor laws differ so it’s important to become familiar with what is allowed – and not allowed in regard to ages, restrictions and allowable types of work for youths and teens 9 and older. Check your state’s website fir specifics.
• Interns – paid or unpaid – should not be treated as replacement employees (even if just for a few months). Have specific tasks or activities designated just for them that would not ordinarily be done by a paid employee. Internships need to be for a specific length of time with no guarantee of a paid position later on.
• Be specific about the job, what it entails and how it should be performed. Don’t differentiate between seasonal and year-round employees, everyone should adhere to company policies and rules and everyone should have their own copy of the company handbook.

Provide safety training at the beginning of employment to ensure seasonal employees understand workplace risks and hazards and what to do if they’re injured on the job.

Seasonal and part-time employees are subject to the same tax withholding rules that apply to other employees.

What other tips can you offer about managing seasonal hires?

Employment Tax Schemes – A Way to Save Money and Land in Prison

BBB encourages business owners to be intimately involved in tax filing and payment processes – including knowing all of the details if a third-party is handling the process on behalf of the business.

Also, BBB is advising businesses to be aware of six common ways companies have gotten into hot water for employment tax non-compliance. 

Hiring unreliable third-party payers
Most payroll service providers and professional employer organizations provide upstanding service. But there are some less-than-reputable third-party payers who fail to pay the collected taxes to the IRS. Employers should check with BBB (www.bbb.org) to find a trustworthy third-party payer, and once hired, regularly verify that payments are being made on their behalf.

Believing frivolous arguments
Unscrupulous promoters use misleading arguments to encourage businesses to avoid paying employment taxes. Don’t fall victim to incorrect interpretations of tax laws or the improper use of Form 941c to attempt to secure a refund of previously-paid employment taxes.

Offshore employee leasing schemes
Don’t do business with shady promoters affiliated with offshore companies who misuse the otherwise legal business practice of employee leasing. Consult with reputable legal and tax experts before entering into employee leasing arrangements.

Misclassifying worker status
Don’t be tempted to incorrectly treat employees as independent contractors to avoid paying employment taxes. If the employer has the right to control what work will be done and how it will be done, the worker is an employee.

Paying employees in cash
There is nothing wrong with compensating an employee in cash, as long as the business recognizes that employment taxes are owed regardless of how the employee is paid.

Filing false payroll tax returns
Preparing false payroll tax returns or understating the amount of wages on which taxes are owed is illegal.