Seasonal workers are the backbone of many British businesses during the busy summer months.
However, employers must understand the unique payroll responsibilities for these workers to ensure that they are being paid correctly.
Setting up seasonal workers
It can be easy to think of seasonal workers as temporary support, but from a payroll perspective they must be treated like any other employee.
Before a new starter is paid, employers should gather the correct information to set them up on payroll properly.
This includes obtaining the employee’s National Insurance number and ensuring the correct tax code is applied.
Where a student is taking on their first job, employers may need to use starter checklist information until HMRC provides the correct tax code.
Minimum wage requirements
Seasonal workers tend to be younger employees, meaning employers must pay close attention to the National Minimum Wage and the National Living Wage rates.
The amount an employee should receive depends on their age and employment status.
The current rates of minimum wage in England (excluding London) are:
- National Living Wage (21 and over): £12.71 per hour
- 18–20-year-olds: £10.85 per hour
- 16–17-year-olds: £8.00 per hour
- Apprentice Rate: £8.00 per hour
As younger workers may qualify for different rates, employers must ensure that any birthday taking place during their employment is reflected in their payroll calculations.
Careful attention should also be paid to deductions that could inadvertently reduce pay below the legal minimum.
Holiday pay requirements
For many seasonal workers, this is their break from the academic year and they may have holidays planned during this time.
A common misconception is that seasonal workers are not entitled to holiday pay.
Seasonal workers accrue holiday entitlement in the same way as other employees and should receive the correct holiday pay for any leave taken during their employment.
If employment ends before holiday entitlement has been used, employers may need to include payment for any accrued but untaken holiday in the worker’s final paycheque.
A fluctuation in hours
Summer roles are often linked to unpredictable demand. Hospitality venues, attractions and retail businesses may all experience spikes in activity depending on weather or events.
As a result, seasonal workers often work varying hours and employers should ensure their payroll processes can accurately capture changes in working time, overtime and shift patterns to guarantee employees are paid accurately and on time.
How can we help?
Payroll for seasonal workers can often be confusing, with shorter contracts creating unique issues for payroll processes.
We can manage your payroll processes to ensure that all of your seasonal employees can be paid correctly and on time.
For support with seasonal payroll, get in touch with our team for guidance.