Santos, Postal & Company, P.C., Here Are Your Articles for Thursday, October 12, 2017
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Know the Tax Rules for Part-time or Seasonal Help

 

As an employer, you normally have to file a quarterly Form 941 to report your employees' wages and withholding. Each quarter, if you pay wages subject to income tax withholding (including withholding on sick pay and supplemental unemployment benefits) or Social Security and Medicare taxes, you must file a Form 941, although there are some exceptions.

However, seasonal employers don't have a Form 941 for quarters where no wages have been paid and therefore no tax liability. You will find a line on Form 941 that lets you check a box noting that you are a seasonal employer and thus will not have to file a return for every quarter of the year.

The preprinted label on Form 941 doesn't include the date the quarter ended. You need to enter it yourself when you file the return. The IRS doesn't inquire about unfiled returns if at least one taxable return is filed each year. However, you need to check the seasonal employer box on every Form 941 you file.

Some businesses often need to hire workers on a seasonal or part-time basis for help with things such as sporting events, holidays, harvest season or commercial fishing. They even may hire temporary help for fireworks stands. Seasonal work is especially common in the hospitality industry. The IRS also has special guidance on independent contractors and employees, and there are detailed rules for farm workers.  

You are required to keep good records so that you can file accurate returns. It's a good idea to keep all receipts, payment information and tax data in one location to make filing your taxes easier. At the end of the day, the IRS doesn't care how casual or irregular your hiring practices are, but your record keeping must be clear and you must follow all the rules.

Let us know how we can help you keep track of all your employees, no matter what their status is.

 

 
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Santos, Postal & Company, P.C.
Santos, Postal & Company, P.C.
240-499-2040
bgreenfest@santospostal.com
11 North Washington Street
Suite 600
Rockville, MD 20850
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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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