Hiring Temporary or Seasonal Workers?? A Few Considerations

The holidays are approaching and you might be looking for extra staff for your business or workplace.  Even when it’s not holiday season, your business might be cyclical, so you’ll need extra help for a period of time or maybe part-time help. The key is to remember that seasonal, temporary or part-time workers are employees not independent contractors.  Many of the laws and regulations that apply to full-time employees also apply to seasonal or part-time employees.

Here are some things to consider:

Laws that cover harassment, discrimination, and workplace health and safety will apply to your temporary and part-time workers just as they do to the other employees in your business.  These employees are entitled to minimum wage and overtime pay.  As an employer, you are also responsible for appropriate documentation and record keeping.  These employees are not entitled to any special protection and are subject to the same employment considerations as other employees, e.g., at-will status, performance management, etc. 

Here’s a brief list of your obligations and benefits that you must provide to your temporary, seasonal or part-time workers.

• Unemployment Benefits – click here to determine your obligations as a New York employer.
• Taxes/Social Security/Medicare – IRS Publication 15 provides that regarding “federal income tax withholding and social security, Medicare, and FUTA tax purposes, there are no differences among full-time employees, part-time employees, and employees hired for short periods. It does not matter whether the worker has another job or has the maximum amount of social security tax withheld by another employer.” See full text here.  See IRS Guidelines here.
• Workers’ Compensation – Businesses with employees are required to carry Workers’ Compensation insurance coverage through a commercial carrier, on a self-insured basis, or through a state Workers' Compensation insurance program.  Click here for information New York Workers' Comp information.

Misclassification of employees or failure to provide benefits listed above can result in an audit or investigation by the IRS or Department of Labor.  Contact me if you're considering hiring part-time, seasonal or temporary workers or visit my website for additional information.