Starting a Small Business

5 Things to Remember When Hiring Seasonally

by
Julie Farless
on
9/29/2016
5 Things to Remember When Hiring Seasonally

Business is booming during the holidays, and it just makes sense to bring in seasonal workers to help you cover customer demands. Temporary staffers can help you serve more customers and keep everyone happy, but “temporary” doesn’t mean “unofficial.” Even though these workers are only seasonal, you’ll have to do the same amount of onboarding and complete the same paperwork required for a new hire. It is essential that you follow all labor, employment and tax laws when you hire seasonal help; cut corners here and you could end up with some costly fines or even a lawsuit to deal with.

Clearly Define the Seasonal Employment Period

Most seasonal helpers understand that they are being hired on a temporary basis, but it is important to clearly define this period in writing. Making the actual dates of employment clear now will help avoid any misunderstandings when the season comes to an end. If you are a large employer, then you may also need to provide health insurance for seasonal workers who put in more than 120 days.

Employee or Independent Contractor?

You both need to be sure what your seasonal helper is – are they an employee or an independent contractor?  You’ll need to withhold taxes for employees, but not independent contractors; learning about the differences between these types of workers can help you avoid expensive and time-consuming corrections later.

Complete Legal Paperwork

Even though you are only hiring seasonal help, you still need to fill out paperwork to comply with both state and federal rules; miss out on this and you’re in for a big headache at tax time. You need to show that your seasonal employees are legally eligible to work in the US and complete the required documents for withholding.

Fully Train Your New Team 

Even temporary workers need to follow your procedures and rules and understand the way your business works. You’re hiring them to help you during the busiest time of the year; if they are truly going to benefit your business, you need to make sure they are up to speed. An orientation at the beginning of the season can make sure everyone is on the same page and that your procedures are followed. 

Watch the Clock 

Your seasonal team will need to follow the same rules as your regular staff when it comes to overtime pay. If you hire minors, even on a temporary basis, you need to make sure you comply with any hour restrictions or wage requirements that apply to minor employees. If you’ve hired part-time employees, watch the clock – or they could become full-timers and require additional paperwork and benefits.

Protect Your Data

You’ll have more people than usual in and out of your office and potentially your files; provide access to secure data or your network only when it is essential. Your seasonal hires may not need to access proprietary information at all, but if they do, a confidentiality agreement should be part of your onboarding process.

Seasonal employees allow you the flexibility you need to cope with the increased demands you’ll encounter during the holiday period – without going to the expense of hiring more full-time workers. As long as you specify your terms correctly and comply with tax, hiring, and Affordable Care Act guidelines, those seasonal workers will truly be a benefit for your business.

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Julie Farless

Julie Farless

Martinez & Shanken, PLLC is a Certified Public Accountant (CPA) firm based in Gilbert, Arizona. We provide a full range of accounting, bookkeeping, consulting, outsourcing and business services, but we specialize in tax preparation. We work with you to ensure that your personal or business processes are conducted in a manner that ensures ongoing integrity in your financial transactions. We are available to answer your questions and help with your ongoing tax planning and changing business needs.

Deborah Martinez & Earl Shanken
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Arizona

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