KIM: Hello.
My name is Kim from the IRS.
If your business
is dependent on income
during peak periods of the year,
you may have
a seasonal business.
If so, we have
some rules and advice
to help guide you through the
unique tax issues that you face.
Seasonal businesses
often hire temporary help
for such diverse ventures
as fireworks stands,
Christmas-tree lots,
haunted houses
and pumpkin patches,
or for sporting events,
holidays,
commercial fishing,
and harvest seasons.
Questions often come up about
the tax treatment of payments
for casual labor,
temporary help,
and seasonal help.
The main rule is
seasonal employees
are subject to the same
tax withholding rules
that apply
to all other employees.
As an employer,
you normally have to file
a quarterly Form 941
to report your employees´ wages
and withholding.
However, seasonal employers
do not have to file a Form 941
for quarters
where you haven´t paid wages
and don´t have a tax liability.
To tell the IRS that
you will not file a return
for one or more quarters
during the year,
check the box on Form 941
"seasonal employer"
for every quarter
you file Form 941.
All employers
must keep good records
to file accurate returns.
It´s a good idea
to keep all receipts,
payment information, and
tax information in one location
to make your filing taxes easier
when the time comes.
For more information
on seasonal employment,
visit our website at IRS.gov
and type the words
"Seasonal Help"
in the search box.
You can also refer
to IRS Publication 15,
Circular E, Employer´s Tax Guide
to learn more about your tax
responsibilities as an employer.
And if you hire farm workers,
follow the rules
in Publication 51, Circular A,
Agricultural Employer´s
Tax Guide.
For more on your record-keeping
requirements,
you can visit us on IRS.gov
and type the words
"Employment Tax Recordkeeping"
in the search box.
You can also download
our helpful Publication 583,
titled "Starting a Business and
Keeping Records" at our website.