Jun 03, 2025

Is This Your Situation: Managing Tax Rules for Part-Time or Seasonal Help

Do you have questions about the tax treatment of payments for part-time and seasonal help? These employees are subject to the same rules that apply to all employees — with some twists. Click through for some help on tax rules regarding part-time and seasonal help.

As an employer, you normally have to file a quarterly Form 941 to report your employees' wages and withholding. Each quarter, if you pay wages subject to income tax withholding (including withholding on sick pay and supplemental unemployment benefits) or Social Security and Medicare taxes you must file Form 941, although there are some exceptions.

However, seasonal employers don't have a Form 941 for quarters where no wages have been paid and, therefore, there is no tax liability. You will find a line on Form 941 that lets you check a box noting that you are a seasonal employer and thus will not have to file a return for every quarter of the year.

The preprinted label on Form 941 doesn't include the date the quarter ended. You need to enter it yourself when you file the return. The IRS doesn't inquire about unfiled returns if at least one taxable return is filed each year. However, you need to check the seasonal employer box on every Form 941 you file.

Some businesses often need to hire workers on a seasonal or part-time basis for help with things like sporting events, holidays, harvest season or commercial fishing. You even may hire temporary help for fireworks stands. Seasonal work is especially common in the hospitality industry. The IRS also has special guidance on independent contractors and employees, and there are detailed rules for farm workers.  

You are required to keep good records so that you can file accurate returns. It's a good idea to keep all receipts, payment information and tax data in one location to make filing your taxes easier.

This is just a summary of what can be a complex series of issues, especially in the era of remote workers where lines can be blurred. If you have part-time or seasonal workers, give us a call today, and we'll help make sure you're on track with state and federal taxing authorities. We'll work with you on setting up a record system to keep track of your staff—both permanent and seasonal.

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