July 1, 2009
It Bears RepeatingFor many businesses, summer traditionally brings an influx of part-time or seasonal workers into the work force. Employers are responsible for treating these workers properly for employment tax purposes.
Generally, workers are either employees or independent contractors, based upon the facts and circumstances of the relationship between the business and the worker. For federal income tax withholding, Social Security, Medicare, and federal unemployment tax purposes, neither the number of hours worked nor the amount earned determines the status of an individual as independent contractor or employee.
For example, an individual can be an employee even though the individual works one hour a week or one day a year. Part-time or seasonal workers who are employees are subject to the same tax withholding rules that apply to other employees.
More information about treating these workers properly is on the "Part Time or Seasonal Help" Web page on www.irs.gov. The page contains helpful tips for filing Form 941, Employer's Quarterly Federal Tax Return, other information about seasonal/part-time workers and links to other resources to help businesses with employees.
Contact our firm if you have any questions or comments about this article.
The technical information here is necessarily brief. No final conclusion on
these topics should be drawn without further review and consultation. Please
be advised that, based on current IRS rules and standards, the advice contained
herein is not intended to be used, nor can it be used, for the avoidance of any
tax penalty assessed by the IRS.
© 2009, CPAmerica International. All Rights Reserved.
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