The IRS has reminded businesses that seasonal and part-time employees must generally follow the same federal tax withholding, Social Security and Medicare tax rules as full-time employees. The agency said employers must withhold and pay employment taxes on wages paid to these workers to avoid penalties and stay in compliance with tax rules. In addition, seasonal employers who do not owe employment taxes during certain quarters usually do not have to file Form 941, Employer’s Quarterly Federal Tax Return, for those quarters. Employers can let the IRS know by checking the “seasonal employer” box in Part 3 of every Form 941 they file. If they check this box and file at least one taxable return during the year, the IRS generally will not ask about quarters when no return was filed because no taxes were due.
The IRS also said businesses that hire farm workers should follow the rules in Publication 51, (Circular A), Agricultural Employer’s Tax Guide, when filing Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees. Finally, the IRS advised businesses to understand their tax responsibilities before hiring seasonal or part-time workers so they can file the correct forms, pay taxes on time and avoid unnecessary problems throughout the year.
