Many businesses rely on seasonal employees. However, in order to maintain compliance, properly process payroll, and find success, employers need to pay close attention to how they manage their season workforce.
Here is everything you need to know about seasonal employment:
What Is Seasonal Employment?
There are many reasons why a particular business may hire seasonal workers. Generally, it's because there is a particular period in the year in which workforce / product demands are greater.
For instance, a farm may hire more hands to help during harvest season. A popular retail store may need additional workers during busy shopping seasons such as Christmas.
The Internal Revenue Service (IRS), however, defines "seasonal employment" as annually recurring work periods of less than 12 months each year. Seasonal employees are permanent employees who are placed in non-duty/non-pay status and recalled to duty in accordance with pre-established conditions of employment.
Payroll for Seasonal Employees
First and foremost, employers must still pay employees the applicable minimum wage in their state. This could be the federal minimum wage of $7.25 per hour, or a higher state or local minimum wage rate.
Seasonal employees are also entitled to overtime benefits. Specifically, nonexempt seasonal employees are entitled to overtime pay—1.5x their regular rate of pay for all hours worked over 40 in a workweek. Some states may have more protective laws in place as well.
Lastly, seasonal employees are subject to the same tax withholding and reporting rules as full-time employees.
Tips for Managing Seasonal Employees
Employers who have a seasonal workforce should consider the following to make workforce management easier.
Predict Staffing Demands
To prepare for the busy season, it’s essential to forecast staffing needs early by analyzing past data to identify peak times and required roles.
Collaboration with departments like logistics ensures alignment on timing and skill requirements. Starting recruitment and onboarding early helps secure and train the right seasonal workers, preventing last-minute challenges and ensuring readiness for the holiday rush.
Establish a Hiring Process
Using hiring technology can make the recruitment process more efficient by automating administrative tasks through tools like applicant tracking systems.
Pre-screening tools help quickly identify qualified candidates, allowing HR teams to focus on strategic tasks such as interviewing and selecting top talent—ultimately speeding up hiring and improving the quality of new hires.
Maintain Scheduling Flexibility
Managing schedules during busy seasons is easier with scheduling software that supports shift-swapping, automated time-off requests, and instant updates, ensuring all shifts are covered.
Allowing employees to choose preferred hours can boost engagement and attendance, while planning for absenteeism with backup staff helps maintain smooth operations despite unexpected absences.
Establish a Smooth Training Process
Effective training for seasonal workers involves creating a streamlined onboarding program that equips them with the necessary skills for their roles.
Cross-training across multiple functions increases flexibility and ensures coverage during busy periods. Using online learning platforms can standardize training, deliver it efficiently, and help maintain consistent operational quality.
Maintain Strong Communication
Maintaining open communication with seasonal employees ensures they stay informed about schedules and policy changes, reducing misunderstandings.
Using apps or messaging platforms helps coordinate last-minute updates efficiently. Regular check-ins and feedback sessions boost morale, keeping employees engaged, motivated, and committed to performing well.
Get Help Managing Seasonal Employees
If you are an employer who relies on seasonal workers but is having trouble managing your seasonal workforce, you may want to consider seeking help from an experienced payroll company.
Or, some companies may want to consider HR outsourcing as an alternative solution.
Contact us today to learn more.
