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

Why Payroll is One of the First Things You Should Outsource

The quality of your staff is the foundation of a successful business. If you have skilled employees and contractors, then you can rest assured to know that things will get done and the business will keep moving forward. On the other hand, unmotivated employees can quickly bring down a company because of the poor customer service that is reflected.

As an employer, you need to be sure that you are proactively working to improve company culture. Happy employees will treat your customers right, helping you to increase sales and productivity. Payroll is an important aspect of employee satisfaction because your team needs to know that they will receive a correct paycheck in a timely manner. When payroll problems happen, it starts a domino effect that negatively impacts attitude and culture in your business.

Mistakes of Do-It-Yourself Payroll

If you are just getting started with your small business, then it makes sense that you are carrying many responsibilities. It is common for small business owners to carry the bulk of the responsibility, instead of handing some of these things off to employees and contractors. Not only are you looking for ways to cut overhead costs, but you also want to maintain control over the business.

Even though it might seem like a simple solution to handle the payroll by yourself, be aware that you could be causing potential problems for your company. Too often, small business owners don’t have the experience or knowledge to manage the business financial details. As a result, things slip through the cracks and mistakes are made.

Compare the costs of hiring a payroll service to help with your company, and you will see that it is cheaper to pay for this monthly service instead of dealing with the aftermath of a failing business because of payroll mistakes. These mistakes could cost thousands of dollars in employee turnover, back taxes, IRS fines, and more.

Is Payroll Software a Good Idea?

Using a reputable software program is a great place to start, but the software won’t overcome the human mistakes. The computer is only as good as the information that is entered into the software. So, you need to be sure that you are using accurate information when setting up the payroll details for your employees.

Depending on the software without using regular checks and balances could cause a domino effect of problems in the future. So, it is important that you have an experienced accounting and bookkeeping team in place to stay ahead of the details. The combination of the right software program and a knowledgeable team will set your company up for success.

Accounting Employee or Outsourced Payroll Services?

Now that you see the importance of hiring an experienced financial professional to help with payroll, the next step is to compare the options of an in-house employee or an outsourced payroll service. When you look at the numbers, it is easy to see why many small business owners turn to outsourced services to solve this problem.

If you hire an employee to manage payroll, you will need to pay their salary with extra costs on top for benefits. These benefits can cost thousands of dollars per year for health insurance, life insurance, paid time off, and more. Plus, you have the employee taxes and worker’s compensation fees calculated based on the amount that is paid to each employee.

Not only do you need to cover these taxes and benefits for an employee, but you also need to carry the cost burden of paying for office space to accommodate that employee. Other expenses might include office furniture, computer equipment, and office supplies that are needed so that they can do their job.

There is no doubt that it can be expensive to hire an employee. So, many small business owners are looking at options to bring on contractors for support instead. These outsourced payroll services offer all of the expertise that you need, without the burden of having an employee in your office. You get the best of both worlds: you can save money and have reliable, accurate payroll processing at the same time.

Benefits of Outsourcing Your Payroll Processing

Are you considering the option to outsource your payroll? Here are a few benefits that you can expect if you choose to invest in this service:

  • Save Time: There is no reason for you to spend your limited time on payroll processing. As a business owner, your time is better spent on employee management and company growth. Let someone else handle the busy work for payroll processing. Outsourcing these tasks will free up your time so that you can focus on more important responsibilities for the company.
  • Boost Productivity: How often do you feel like your day is taken up with busy work and seemingly mundane tasks? As the owner of the company, it can be hard to maintain productivity if you are constantly interrupted throughout the day. Plus, your productivity will go down if you are wasting your time on busy work. Outsource this busy work so that you can improve your productivity each day and maximize your results.
  • Decrease Expenses: As mentioned above, there are many costs associated with bringing another employee into your company. By working with a payroll provider, you can reduce the direct costs of payroll processing. Even if you have a large company that can support the salary of an in-house accountant, you still might consider the benefits of outsourced payroll services to minimize costs.
  • Avoid IRS Penalties: If tax filings and paperwork are turned in late, then the IRS will charge expensive fees and interest costs. Your risk of these fees will go up if you are handling the payroll without the support of an experienced accounting team. Small business owners often make mistakes, which can result in costly problems in the future.
  • Financial Security: Is your bank account and employee information secure in your office? Payroll processing can be risky if you aren’t using the right security features to protect the information. There are many security threats that you can run into in the digital age in which we live. So, it is a good idea to hire a company who will go above and beyond to protect your financial security.
  • Keep Employees Happy: One of the fastest ways to make an employee upset is by making a mistake on their paycheck. Reliable, accurate paychecks are the foundation of employee satisfaction. So, you need to make sure that you have a payroll team that will ensure accuracy for every pay period.
  • Expert Financial Advice: Hire the right payroll processing team, and you will have expert financial advice throughout the year. These accounting services can be much more than just writing the paychecks! The right accounting service will offer services for tax filing and management, as well as all other types of business financial support that you need. Take advantage of this expertise to help your company grow.
  • Regular Reconciliations: There are many benefits to having an outside party handle the reconciliations for your payroll and business transactions. These checks and balances will decrease the possibility of fraud or theft within the company. Instead of leaving this responsibility with an in-house employee, bring in an outsourced expert who can look for potential signs of employee fraud.
  • Current Expertise: Payroll services make it their job to stay ahead of the changes in the industry. If the IRS makes adjustments to tax rates, then you can rest assured to know that your company will stay up-to-date with these changes. You don’t have time to study the industry and keep up with these changes by yourself. Instead, bring in an outsourced service which is entrenched in the industry and retains current knowledge for mandates on the federal, state, and local levels.
  • Lower Stress Levels: How much do you stress every time you need to calculate payroll for your employees? This task can increase your stress levels and make it hard for you to relax during your free time. Instead of burdening yourself with high stress levels, outsource the work so that you can sit back and relax while the experts handle the details.

Hiring an outsourced payroll team is one of the best things that you can do for your company! Not only will you free up your time, but you can also have the peace of mind to know that you are missing some of the mistakes that are commonly made by small businesses.

It is important that you build the right team to support the future success of your company. If you are looking for ways to improve your financial systems, then you need to talk to us to learn more about the services that are available.

At Easier Accounting, we specialize in all types of business financial services, including payroll processing and tax filing. We invite you to call to schedule a consultation to learn more about the ways that we can support your small business. We are here to help with anything that you need! (888) 620-0770