The scorching sun has signalled the start of summer, and that brings with it the need for seasonal workers.
Seasonal workers are a vital part of many businesses, particularly those that deal with a high number of tourists.
However, seasonal workers bring with them their own payroll challenges and it is essential that businesses handle them effectively to avoid becoming noncompliant.
What are the main payroll concerns for seasonal workers?
One of the most common pitfalls is misclassification.
Seasonal hires must have clearly defined, time-limited contracts that state their work period, pay rate and employment status just as full-time employees would have.
All seasonal workers must receive at least the National Living Wage (NLW) or the National Minimum Wage (NMW), depending on their age.
If someone turns 18 or 21 during the time they are working with you, you will need to immediately adjust their pay accordingly.
Keeping a record of when seasonal workers’ birthdays are might seem like a chore, but dealing with HM Revenue and Customs (HMRC) is a more tedious process.
You also need to maintain a tight focus on time-recording.
Seasonal workers may end up working additional hours if the needs of the job require it, and you will need to compensate them for this effort.
On the other hand, the lack of long-term employment prospects can make some seasonal workers shirk work, and you wouldn’t want to find yourself paying for work that was never completed.
How can you be efficient when handling payroll for seasonal workers?
Understanding your obligations is the best way to ensure that you can stay efficient when payrolling seasonal workers.
You need to effectively onboard seasonal workers as there should not be any delay in determining how much they need to be paid and when payment should take place.
Offboarding matters just as much.
When a seasonal contract ends, final payslips, holiday pay and P45s should be issued by the next payroll run as any delays risk costly penalties.
What records should you keep and for how long?
Being proactive with record keeping is one of the best ways to maintain efficiency with seasonal workers.
Alongside the mentioned payroll data that should be kept on file, it is also important to keep employment agreements and contracts.
These need to be stored for at least seven years, as you do not know when it will be necessary to refer back to them.
Although unlikely, if you offered any benefits to your seasonal workers, then it will also be necessary to retain a record of these.
Seasonal workers are a valuable resource but only when they are treated with the same considerations and respect afforded to regular workers.
We are on hand to help you deal with the unique challenges that seasonal work can present in terms of the administrative burdens placed on your business.
We can help you factor in the necessary employment costs so that hiring seasonal workers does not negatively impact the financial health of your business.
If you are looking into seasonal workers, you must expect good revenue over the summer, and we can help you maximise this opportunity.
Keep your summer of seasonal workers stress-free. Speak to our team today!
