Casual labor is a term derived from some state employment agencies, referring to any type of work that does not promote or advance the business of the employer. Casual labor has no federal employment tax significance. Seasonal help is what's often needed for sporting events, holidays, and commercial fishing or harvest seasons. Whether you are getting paid or paying someone else, questions often arise over the tax treatment of payments for casual labor, temporary help, and seasonal help.
Casual or seasonal employees are subject to the same tax withholding rules that apply to other employees. For additonal information on your tax responsibility as an employer, refer to our section on businesses with employees. These rules are also explained in IRS Publication 15, Circular E, Employer's Tax Guide.
If you employ farm workers, follow the rules in IRS Publication 51, Circular A, Agricultural Employer's Tax Guide .
Seasonal Employer Tips for Filing Form 941:
- Seasonal employers who no longer file for quarters when they regularly have no tax liability because they have paid not wages are not required to file Form 941, Employer's Quarterly Federal Tax Return (PDF) for tax periods during which they paid no wages. To alert the IRS, check the "Seasonal Employer" box above line 1 on Form 941. The IRS will mail two Forms 941 a year to you after March 1.
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The preprinted label for your Form 941 will not include the date the quarter ended. You must enter that yourself when you file the return. Generally, the IRS will not inquire about unfiled returns if at least one taxable return is filed each year. However, you must check the "Seasonal Employer" box on every Form 941 you file.
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