When the Alabama heat rolls in, so do summer hires. Whether you’re staffing a retail store, restaurant, clinic, landscaping crew, or hosting a few ambitious interns, adding temporary or part-time employees comes with unique payroll responsibilities. It’s not just about onboarding quickly—it’s about staying compliant, fair, and efficient.
At Payroll Complete, we know that seasonal employment can be a huge asset—when done right. Here’s what small business owners need to know about processing payroll for summer staff without breaking a sweat.
Why Summer Hires Aren’t As Simple As They Seem
Temporary hires may only be on the schedule for a few weeks or months, but that doesn’t mean they’re exempt from employment laws, payroll taxes, or reporting requirements. In fact, summer employees often fall into categories that make compliance trickier than standard full-time roles.
Common types of summer hires include:
- High school or college interns
- Seasonal part-time workers (retail, hospitality, landscaping, etc.)
- Teen workers (under age 18)
- Temporary contractors (which may or may not be classified correctly)
Misclassification, missing forms, or incorrect wage handling could land you with a penalty—even for a short-term worker. But don’t worry—here’s your playbook.
1. Proper Classification: Employee or Contractor?
One of the first things to determine is whether your summer hire is an employee or an independent contractor. (Spoiler alert: if they follow your schedule, wear your uniform, and use your equipment, they’re likely an employee.)
Misclassifying employees as contractors can lead to:
- Back taxes owed to the IRS
- Penalties for unpaid Social Security, Medicare, and unemployment taxes
- Exposure to wage and hour violations
Need a refresher? Check out our post on Strategies For Managing Seasonal Employees for classification tips and scheduling strategies to keep your seasonal team compliant and organized.
2. Interns: Paid or Unpaid? Know the Rules
Internships can be valuable learning experiences, but employers must tread carefully. Most for-profit businesses are required to pay interns at least minimum wage under the Fair Labor Standards Act (FLSA).
There are exceptions, but they’re narrow. If your business benefits more from the intern than they benefit educationally, they should be treated as employees—with all payroll taxes and documentation included.
Tip: Alabama minimum wage follows the federal rate of $7.25/hour—but don’t forget about overtime if they go over 40 hours a week!
For more insight, check out Three Tips For Summer Hiring: Understanding Your Payroll for advice on how to handle youth workers, interns, and short-term staffing.
3. Youth Workers: Special Considerations for Under-18 Employees
Hiring minors this summer? Here’s what you need to know:
- In Alabama, teens aged 14–15 can work limited hours and must have a work permit.
- Youth workers under 18 can’t work in hazardous occupations and are subject to specific hour restrictions (especially during the school year).
- You must keep records of birth dates and comply with both state and federal child labor laws.
When processing payroll, their wages and taxes are handled like any other employee—with proper W-4 forms, I-9 verification, and payroll tax withholdings.
4. Payroll Taxes Still Apply
No matter how short the employment, seasonal and part-time employees are subject to:
- FICA taxes (Social Security and Medicare)
- Federal and state income tax withholding (based on their W-4)
- Unemployment taxes (FUTA and SUTA)
Even if someone is only on your payroll for three weeks, skipping any of these steps can lead to costly corrections later.
5. Use a Reliable Timekeeping System
With fluctuating schedules, multiple part-timers, and variable hours, summer is not the time to rely on handwritten timesheets. Choose a timekeeping system that integrates with your payroll software to:
- Track hours accurately
- Flag overtime
- Manage multiple job codes or departments
This helps ensure employees are paid correctly, and you’re fully compliant with wage and hour laws.
6. Let Payroll Complete Take the Heat
Summer hiring doesn’t have to be a headache. With Payroll Complete, you get:
- Expert classification help (W-2 vs. 1099)
- Onboarding support and form management
- Accurate, timely payroll processing
- Compliance guidance for youth workers and interns
- Easy integrations with timekeeping and HR platforms
Whether you’re hiring your first high school student or scaling up for the season, we’re here to make sure payroll doesn’t slow you down.
Final Thoughts
Summer may be temporary—but payroll mistakes can linger well into the next season. Get ahead of the curve with the right systems, classifications, and guidance in place from day one.
Need help onboarding summer staff? Let Payroll Complete handle the details—so you can stay focused on growing your business.