If your business employs seasonal or part-time employees, it’s important to remember that these individuals are subject to the same federal income tax withholding, Social Security, and Medicare tax rules as other employees. As an employer, you must withhold and pay employment taxes on wages paid to these workers. While it can be easy to overlook this area, doing so can be at your detriment.

Their important role

Part-time and seasonal workers play an important role across many industries. Retail businesses often hire extra staff during the holiday shopping season, restaurants and hospitality businesses may increase staffing during peak travel months, and landscaping and construction companies frequently expand crews during warmer weather. Even professional service firms and nonprofits may bring on interns, temporary administrative support, or event staff during busy periods. Regardless of the industry or the length of employment, these workers are generally subject to the same federal employment tax requirements as your full-time workforce, making proper payroll procedures and tax compliance essential.

Seasonal employers and Form 941

Seasonal employers generally do not have to file Form 941, Employer’s Quarterly Federal Tax Return, for quarters in which they have no tax liability because no wages were paid. As an employer, you can let the IRS know they may not file a return for certain quarters by checking the “seasonal employer” box in Part 3 of every Form 941 filed.  

If this box is checked and at least one taxable return is filed during the year, the IRS generally will not inquire about quarters for which no return was filed. For additional details on this, see Section 12 of Publication 15.

Filing Form 943 for agricultural employers

If you employ part-time or seasonal agricultural employee, you may have additional special considerations. Learn more about in Publication 51, (Circular A), Agricultural Employer's Tax Guide. For questions specifically related to agricultural employees, please reach out to our Agribusiness team.

We’re here to help

If you have questions about your seasonal or part-time employees, please contact our Business Tax and Advisory team.

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