Seasonal Employees

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Hi. I'm Tamara, and I work for the IRS.

Did you know there are special tips for seasonal businesses?

Many business ventures throughout various times of the year are considered seasonal.

Seasonal help is what's often needed for sporting events, holidays, and commercial fishing or harvest seasons.

So, just what are the tips for seasonal businesses?

Keep in mind, seasonal employees are subject to the same tax-withholding rules that apply to other employees.

If you're a seasonal employer having paid wages resulting in no tax liability, you're not required to pay quarterly taxes.

In this case, you should check the box for seasonal employer on Form 941 to let the IRS know you don't have a filing requirement.

The IRS will then mail two Forms 941 per year after March 1st.

Remember also that good recordkeeping is very crucial.

Keep all receipts, payment information, and tax information in one location to make filing your taxes easier when the time comes.

Although you're required to keep tax records for three years, in some cases, you may want to keep them even longer.

Publication 583, titled "Starting a Business and Keeping Records," has some really good information on recordkeeping.

You can find more information on seasonal employment at www.IRS.gov.

Just type the words "seasonal help" in the search box.

However, if you have farm workers, follow the rules in Publication 51, "(Circular A), Agricultural Employer's Tax Guide."

For more information on your tax responsibilities as an employer, refer to IRS Publication 15, "(Circular E), Employer's Tax Guide."

You can download these publications from our Website.