This is the season for engaging extra help to handle anticipated holidays sales. Big retailers, such as Walmart and Macy’s, announced their holiday hiring plans — down from 2021 but still significant numbers. Other companies, due to the nature of their business (e.g., ski resorts; amusement parks), may use seasonal workers as their core staffing solution. Whatever reason drives your decision to hire seasonal employees, be sure to understand tax and legal rules for this work arrangement.

Your payroll costs

What will it cost you to hire seasonal employees? Add up the usual payroll costs, which include:

• Wages and overtime for hour employees (seasonal employees usually aren’t employees exempt from the Fair Labor Standards Act minimum wage and overtime rules; these rules apply).
• Employment tax taxes (7.65% of wages for FICA, plus federal and state unemployment taxes)
• Workers’ compensation (see below)
• Perks, which may include employee discounts for goods or services.

Your employee benefit plans

If your business has employee benefit plans, such as group health insurance and a retirement plan, determine what impact seasonal employees have on these plans and their eligibility to participate.

• Health insurance. Seasonal employees are excluded from the formula for determining whether you are an applicable large employer required to provide health coverage to full-time employees or pay a penalty. The IRS says a seasonal worker is generally defined for this purpose as an employee...

Read Full Story: https://news.google.com/__i/rss/rd/articles/CBMiRmh0dHBzOi8vc21hbGxiaXp0cmVuZ...