CPA Practice Advisor - 18

A YEAR IN THE LIFE: PAYROLL

ACCOUNTANT

THE PROS AND CONS OF

Temp vs. Seasonal Workers
AS AN EMPLOYER, bringing in reinforcements at your small
business is sometimes necessary. To keep up with customer
demands during peak seasons, you might need to hire additional
employees, such as seasonal or temporary workers.
Both seasonal and temporary
employees can give your business a boost
and support you during busy times. But,
what option is best for your company?
Read on to find out how temporary vs.
seasonal employees compare.

TEMPORARY VS. SEASONAL
EMPLOYEES
Many small business owners think
temporary and seasonal employees are
one and the same. However, this is not
true. Although seasonal and temporary
jobs may have similar characteristics,
they also have many differences.
So, what is the difference between
seasonal and temporary employment?
Take a look at how they differ below.
A Year in the Life of a
PAYROLL Accountant
is sponsored by

18

TEMPORARY EMPLOYEES
Temporary employees, or temps, are typically hired to cover for absent employees
or to fill gaps in the business's workforce.
You may need to hire temporary work-

NOVEMBER 2019 ■

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ers to cover your bases during peak
seasons. Or, you might hire a temp due
to an employee's leave of absence (e.g.,
maternity leave).
You can hire temps on your own or
through a temporary staffing agency.
If you opt to use a staffing company,
the temp workers are on lease with the
staffing company and don't directly work
for your business. And, you must pay the
agency fees for placement.
Healthcare, IT, clerical, and labor
industries typically hire temporary workers to fill vacancies. Depending on the
business's hiring needs, temp workers
might be full-time or part-time employees. In some cases, temp workers are
not eligible for benefits. However, some
temporary staffing agencies might offer
health care or other benefits to temps.
Some businesses might hire temp workers for permanent positions if they find
they're a good fit for the job.

SEASONAL EMPLOYEES
Generally, seasonal employees are hired
temporarily when a company needs
extra help during a particular season
(e.g., holidays). Businesses might need to
hire seasonal workers to keep up with
the shopping demands during the busy
season.
Certain kinds of businesses, like
retail, sales, and shipping companies,
might need to hire seasonal employees
to keep up with the heavy workload.
Seasonal businesses (e.g., pool cleaning company) may also hire seasonal
employees each year during the months
they are open for business.
Seasonal employees are usually

By Maria Tanksi

hired on a part-time basis, thus reducing payroll costs. And, seasonal workers
might need to work irregular hours (e.g.,
late shifts), depending on the business's
needs.
If you hire a seasonal worker, you
still must follow applicable labor laws.
When hiring seasonal employees, be sure
to meet minimum wage requirements
and follow seasonal employment laws.

PROS AND CONS OF
TEMPORARY VS. SEASONAL
EMPLOYEES
Now that you're familiar with temporary
and seasonal employees, let's take a look
at their advantages and disadvantages.

TEMPORARY
Check out a few pros and cons of temporary workers.
Pros:
■ Fill gaps in the workplace
■ Fill permanent positions (if the temp is
a good fit)
Cons:
■ Fees (with staffing agencies)
■ Few or no benefits for employees

SEASONAL
Take a look at a few hiring seasonal
employees pros and cons below.
Pros:
■ Lower payroll costs
■ Less risky hiring
■ Flexible workforce
Cons:
■ Less time for training
■ Uncommitted employees
■ Employees lacking loyalty ■
This article first appeared on the
Patriot Software blog.
https://www.patriotsoftware.com/
payroll/training/blog/
https://www.patriotsoftware.com/payroll/training/blog http://www.CPAPracticeAdvisor.com
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