Seasonal Employees - Small Business Tips

Seasonal Employees: Small Business Advice for Temporary Hiring

Starting a company is an exciting experience, but it is common for business owners to encounter situations that they don’t know how to handle. For example, it might seem simple to hire seasonal employees. But, you shouldn’t overlook important tax and accounting strategies that need to be used if you are bringing in temporary help.

Summer is a season when many companies need to hire seasonal employees. It is common for companies to have business plans that are busier during the summer months, resulting in the need for a bigger workforce. Do you run a restaurant in a tourist area that gets busier in the summer months? Or, maybe you have a company that caters to school-age kids when they are off for the summer.

There are a variety of business models that need more employee support during this time of year. You need to be sure that you are prepared with the right strategies for the beginning and end of the season.

Benefits of Temporary Workers

You need to keep the business moving forward, which means that you need the manpower to help with all of the tasks that should be addressed throughout the year. There are times when you might be short-handed. But, are you nervous about hiring full-time employees because you don’t need ongoing support later in the year? If you only need help for a few months, then temporary or seasonal hiring is the right solution.

Here are a few benefits you can expect if you are hiring summer employees:

  • Save Money: Your accountant is always looking for ways to help you save money, which is why they might suggest temporary hiring. Instead of paying money for a full-time employee and all of the overhead costs and expenses, you can choose a temporary option to reduce the amount that you will spend.
  • Flexibility: How long do you need help from the new employees? Temporary employees can be great if you are filling in the space while someone is out on maternity leave or you need a few months of help during the busiest times of the year. If you don’t want to hire someone permanently, then temp employees are a great option to try.
  • Find the Right Fit: Are you hiring someone on a temporary basis, with the possibility that you might want to extend for the future? Starting employees on a seasonal status can help you determine if the person is going to be a good fit for your team. Then, you can transition that person from temporary to full-time status in the future if you desire.

Circumstances vary, so you need to consider the needs of your company and the options that are available. It never hurts to hire seasonal employees, but make sure that you talk to your accountant and HR specialists to ensure that the situation will be right for your business needs.

Labor Laws and Temporary Employees

All of the state and federal labor laws still apply for your temporary workforce. Just because someone is not a permanent employee, it doesn’t mean that you don’t have to maintain the regular rules for breaks, meals, overtime payment and more. In fact, a seasonal employee should be treated in the same way as a long-term employee. The main difference between the two employees lies in the length of time that the person works for the company.

Familiarize yourself with the federal and local labor laws. Also, make sure that you are working closely with industry experts to guide the way you are handling payroll and employee management. A payroll company can help you navigate the pay schedule, pay rate, overtime pay, tax withholdings and more. These accounting services are valuable to ensure that your seasonal employees are paid in a timely manner. At the same time, you will stay ahead of the financial details that need to be addressed for the employees who are hired.

If you don’t want to manage the accounting and payroll side of things, another option is to hire seasonal employees through a temporary placement agency. Many times, the temp agency handles payroll and the HR side of employment. You simply need to pay an invoice for the work hours that are completed. But, choosing to hire employees through a temp agency often increases the amount of money that you will spend since you need to cover the fees that go to the agency.

Overtime and Minimum Wage for Seasonal Employees

How many hours will the seasonal employee be working each day and week? Familiarize yourself with the labor laws in your state to ensure that you are paying the correct rates for the hours that are worked. You need to make sure that the person is paid enough to meet minimum wage requirements as well as overtime if applicable.

The U.S. Department of Labor has published unique overtime laws for seasonal employees. For example, if you own a business in the recreation or amusement industry, then it might not be necessary to pay overtime if the operations are only happening fewer than seven months each year. Talk to your accountant when you are discussing payroll so that you can decide whether your company matches the criteria for these laws.

Contract Workers or Seasonal Employees

Why not consider the option to hire a contractor instead of a seasonal employee? This option might be a better solution depending on your industry and the tasks that need to be completed. Talk to your accountant to determine if the scope of work can fit the guidelines for contract workers.

When you are hiring a contractor, you don’t have full control over their schedule or the tasks that are completed each day. Instead, a scope of work needs to be determined. Then, it’s up to the contractor to determine the time and manner in which the work is completed. Hiring a contractor means that you don’t need to pay payroll taxes and the costs of benefits. Plus, you can choose the amount of work that is needed, without having an obligation to pay a part-time or full-time salary for a specific number of hours.

On the other hand, there are times when it is better to hire seasonal employees instead of contractors. For example, if you need someone to be in the office at certain times of the day, then that person will probably fall under the seasonal employee category. If you need to oversee the ongoing tasks that are completed by the worker, then you should choose a seasonal employee instead of a contractor.

Trained Employees Set Your Company Up for Success

Hiring the right talent can have a major impact on the future success of your company. Instead of spending your time on busy work and entry-level tasks, bring in the staff that is needed to handle these projects. Seasonal employees can free up your time so that you can focus efforts on higher-level business strategies. These steps will increase profit margins and increase the likelihood that you will have a need to maintain a working relationship with the seasonal employees.

But, you should be sure that you are hiring employees who are qualified to complete the work. At the same time, these people must receive proper training on the tasks they will be assigned to. Even though an employee has related skills and experience, it doesn’t mean that they understand how to handle your unique business tasks. In-house training will ensure that you have a cohesive team that is optimizing the results for the company.

Additionally, seasonal employees with the right training are often interested in returning to work for future seasons. If you create a good relationship with these employees, then it increases the likelihood that they will want to come back when more work opportunities are available. You will have the workforce that is needed during the busy season, and your seasonal employees will enjoy another opportunity for income again. The training that is completed each season can build on the skill sets that will be required for future projects.

Guidance for Payroll and Employee Hiring

Regardless of the number of employees that you have, it is essential that you have a good accounting team to help you keep up with payroll processing, bookkeeping, tax strategy, and other financial tasks that need to be addressed. These accounting services will make it easy for you to stay ahead of the cash flow. You can rest assured to know that your business is in good hands.

Our team at Easier Accounting is here to assist with the financial tasks for your small business. We focus our services on startups and entrepreneurs, ensuring that we have the specialized skill set that is needed to improve your results. As a business owner, you shouldn’t take a DIY approach to accounting and bookkeeping. Instead, you need to lean on the experience that we can offer for your company. Call us today if you would like to learn about our accounting team and see if our services are a good fit for your needs: (888) 620-0770

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *