Part Time Employees
Assorted Do’s and Don’ts
Do withhold FICA on part-timers, including retirees. Even if someone who works for you part-time also has a full-time job where they have had 100% of their FICA withheld for the year, you must withhold the full amount of FICA from their pay. These individuals can obtain a refund of any overpaid FICA on their 1040. Similarly, if a retiree receiving Social Security benefits works for you, say, one day a week, you must withhold FICA.
Don’t assume former employees who return part-time are ICs. If they do the same job they did before they left, especially in the same tax year, they are employees, not independent contractors.
Don’t base worker status on length of service. A worker who fits the definition of “employee” is an employee and all employment taxes apply—even if he or she works for you only for a few hours on only one day, is still an employee.
Don’t assume you must give benefits to part-timers, or summer help or those hired for holidays. Nor are you required to include temps and part-timers in health, pension and other benefits. But to exclude them, have a written plan stating which benefits are not available to these workers.
As always, if you need help or want more information about this process, please call 760-722-6839 or visit http://tinyurl.com/ybg6fy2 and enter "Part Time Employees" in the additional Comments box and we will contact you.