By Heather Bright, Partner
The sun’s out and if your business is gearing up for a summer surge, then you might be hiring some seasonal workers.
Before the tide of temporary hires rolls in, you need to make sure that you understand your payroll obligations.
What payroll pitfalls do seasonal workers bring?
Misclassifying short-term hires is one of the most common mistakes that inexperienced businesses make.
Every seasonal worker needs a clear, time-limited contract detailing their dates, pay rate and employment status, just as you’d do for full-time or part-time employees.
All seasonal workers must receive at least the National Living Wage (NLW) or the National Minimum Wage (NMW), depending on their age.
The current rates are:
- £12.21 for people aged 21 and over
- £10 for people aged 18 to 20
- £7.55 for people aged under 18
- £7.55 is the apprentice rate
Keeping an eye out for birthdays is something that a lot of employers don’t consider.
As the pay rates are determined by age, if your employee has their birthday while working for you, they may need to go onto a new rate of pay.
This needs to happen on their birthday, so make sure you are not suddenly underpaying an 18-year-old.
How can you keep payroll smooth and efficient?
Onboarding and offboarding need to be handled quickly and efficiently, as there is no time for delay.
Get workers set up on your system before they start so that they do not end up doing any amount of unpaid work.
When their contract ends, issue final payslips, holiday pay and P45s in the very next payroll run.
Even a single missed deadline can land you with fines, so treat these wrap-up tasks as non-negotiable items on your to-do list.
Which records must you keep and for how long?
Contracts and agreements should be kept alongside payroll information for at least seven years.
You never know when you’ll need to dig up an old agreement for a tax audit or a benefits query.
It’s unlikely, but if you have offered any perks such as travel allowances, staff discounts, or free lunches, then keep supporting documents relating to these benefits too.
Being proactive with record‑keeping today saves you from a paperwork avalanche tomorrow.
Seasonal workers can be the lifeblood of your summer revenue, but they need to be managed appropriately to avoid becoming a headache.
You treat them with the same respect you give your core team.
We’re here to help you factor in every employment cost and streamline your payroll processes, so you don’t need to worry about becoming noncompliant.
Don’t let seasonal workers add to your summer stress. Speak to our team today!