Payroll for a seasonal crew

• Seasonal workers are usually W-2 employees, not contractors. The IRS looks at how much control you have over the work.
• The IRS lets seasonal employers mark Form 941 as seasonal, so you don't file in quarters when you pay no wages.
• FUTA's $7,000 wage base and most state unemployment bases reset every January, so early-season wages carry the most tax.
• Workers comp is priced per $100 of payroll, so a short season costs less in total.

Sources: IRS Form 941 instructions, IRS contractor vs employee.

Updated Nov 2, 2026.