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How Temporary Summer Employees Will Affect Your Businesses’ Bookkeeping June 2, 2014

Flatiron District, Manhattan
How Temporary Summer Employees Will Affect Your Businesses’ Bookkeeping, Manhattan, New York

Are you looking to hire temporary or seasonal employees this summer? If so, it is important to keep in mind that hiring seasonal workers, or an extra help of hands for a limited time, does involve very specific regulations. Even if it's a family member, many laws and regulations that apply to full-time employees may also apply to seasonal or part-time employees, and as such should be followed if you plan on taking up a summer staff.

Mark's Bookkeeping Services is one of NYC's premier professional bookkeeping services, dedicated to offering small and medium-sized, as well as not-for-profit organizations the opportunity to get expertly trained QuickBooks and Excel professionals to manage their business's finances. However, even before you seek bookkeeping help, it is important for you to understand how certain changes to your business may impact your finances and operations, like hiring summer workers.

In order to plan your seasonal workforce properly, here's what you should know:

1. Temporary/Part-Time Employees Still Have Rights

While some laws that apply to independent contractors may be different, a lot of laws that apply to full-time employees also apply to seasonal and temporary employees. This includes employment and labor laws that cover harassment, discrimination, and workplace health and safety. In addition, if you hire seasonal part-time employees, it is also important to note that these employees have equal rights to full-time employees in terms of minimum wage, overtime pay, and record keeping under the Fair Labor Standards Act (FLSA).

2. Independent Contractors Are Not Employees

If you are hiring freelancers or independent contractors, keep in mind that they are essentially self-employed, and work unsupervised as a part of your time. These workers tend to be responsible for GST, and VAT taxes themselves. You also are not required to provide benefits, withhold tax/Medicare/Social Security, or pay unemployment taxes either. However, since you are not their employer, you also can’t dictate the hours the contractor works. At the same time, you are required to report compensation of $600 or more to the IRS as necessary.

3. Hiring Children and Family Members

There are specific rules you must follow if you have a sole proprietorship and/or partnerships that is parent-owned and hires children. In these situations, children of the owner can work as many hours as they wish, but cannot work near flames or hazardous materials according to child labor laws. In addition, in a 100% parent-owned business where the only employees are family, relatives are not required to be paid minimum wage. Keep in mind, this is only true when the only employees are relatives, and non-family members are not involved in the business operations. Children who are not the owner’s child also must obtain and present an age certificate recognized by the Department of Labor (DOL) and the state’s Wage and Hour Division (WHD) to be employed by your business.

If not properly followed, managing your business’s books can get messy. To make sure that all laws and procedures are followed properly, consult the accounting experts at Mark’s Bookkeeping Services in the Flatiron District for assistance. Call the non-profit accounting team at (212) 243-5757 to schedule your free consultation!