--- title: "Payroll Tax Requirements: What Every Small Business Should Know This Summer | LedgerFi" description: Hiring summer help? Learn how payroll taxes apply to interns, students, and seasonal staff—and how to stay compliant with IRS & state rules. image: https://www.ledgerfi.co/hubfs/LedgerFi-OG-Default.png --- Expense Management # Payroll Tax Requirements: What Every Small Business Should Know This Summer Hiring summer help? Learn how payroll taxes apply to interns, students, and seasonal staff—and how to stay compliant with IRS & state rules. [ Nathan Hodgens ](https://www.ledgerfi.co/resources/author/team-ledger) Jul 2, 2025 [mailto:?subject=Check%20out%20https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer&utm_medium=social&utm_source=email%20&body=Check%20out%20https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer&utm_medium=social&utm_source=email](mailto:?subject=Check%20out%20https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer&utm_medium=social&utm_source=email%20&body=Check%20out%20https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer&utm_medium=social&utm_source=email) [Expense Management](https://www.ledgerfi.co/resources/tag/expense-management) #### TABLE OF CONTENTS - [What Are Payroll Taxes?](https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer#What) - [Do Seasonal Employees Trigger Payroll Tax Requirements?](https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer#Do) - [Key Payroll Tax Forms & Deadlines for Summer](https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer#Key) - [Special Considerations for Summer Hiring](https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer#Special) - [Avoiding Payroll Errors During the Busy Season](https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer#Avoiding) - [Penalties for Payroll Tax Non-Compliance](https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer#Penalties) - [Bottom Line](https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer#Bottom) ![Payroll Tax Requirements: What Every Small Business Should Know This Summer](https://www.ledgerfi.co/hubfs/AI-Generated%20Media/Images/A%20friendly%20summerthemed%20image%20of%20a%20small%20business%20owner%20eg%20shopkeeper%20or%20caf%20manager%20reviewing%20payroll%20documents%20with%20seasonal%20employees%20nearbysuch%20as%20interns%20or%20teens%20in%20casual%20uniforms%20Include%20visual%20cues%20like%20a%20clipboard%20with%20Payroll%20Forms%20IRS%20tax-3.jpeg) × Need Help Fast? Talk to an Expert Instantly [** Call now ** ](tel:+18886026210) [ Schedule call ](https://meetings.hubspot.com/jeremy721/web-consultation?uuid=72d6ad92-b616-4404-8180-05ac0a3a20cd) Hiring during the summer? Whether you're bringing on interns, students, or part-time help, **payroll taxes don’t take a vacation**. As a business owner, it’s your responsibility to know what payroll taxes apply, when they’re due, and how to stay compliant; especially with seasonal employees.  In this blog, we’ll explain what payroll taxes are, how they apply to summer hires, which forms and deadlines matter, and how to avoid costly payroll mistakes during your busiest months.  ## **What Are Payroll Taxes? ** Payroll taxes are the taxes you’re required to **withhold from employee paychecks ***and ***pay as an employer**. These taxes fund essential programs like Social Security, Medicare, and unemployment benefits.  Here’s what typically makes up your payroll tax obligations:  - **FICA Taxes**: Social Security (6.2%) and Medicare (1.45%) withheld from employees—and matched by the employer  - **Federal Income Tax**: Withheld from the employee’s wages based on their Form W-4 (varies by state; some don’t require it)  - **FUTA**: Federal Unemployment Tax paid by the employer (typically 6% on the first $7,000 per employee)  - **State Income Tax**: Withheld from the employee’s wages based on their Form W-4 (varies by state; some don’t require it)  - **SUTA**: State Unemployment Insurance, paid by the employer  ## **Do Seasonal Employees Trigger Payroll Tax Requirements?** **Yes, in most cases**. If you hire seasonal or summer employees and classify them as employees (not contractors), you’re on the hook for payroll tax obligations just like you would be for full-time staff.  That means you must:  - **Withhold Federal and State income taxes ** - **Pay the employer share of payroll taxes ** - **File payroll tax forms **like Form 941 (quarterly) and Form 940 (annually)  ### **Some Exceptions May Apply: ** - **Student interns **may be exempt under specific programs or schools - **Family employees under age 18 **working for sole proprietorships or partnerships - **Independent contractors **(if properly classified)  But don’t assume your seasonal hire qualifies for an exception—**check first or ask your accountant**.  ## **Key Payroll Tax Forms & Deadlines for Summer ** Hiring in the summer? Here are the forms you’ll likely need:  | **Form** | **Purpose** | **Due Date** | | --- | --- | --- | | **Form 941** | Reports federal payroll taxes | Due quarterly (July 31 for Q2) | | **Form 940** | Reports federal unemployment tax | Due Jan 31 annually | | **Form W-4** | Employee’s withholding election | On or before hire date | | **Form I-9** | Verifies employment eligibility | Within 3 days of start date | | **State Forms** |  Withholding, new hire reporting | Varies by state | ## Still Have Payroll Tax Questions? Talk to an expert directly! Call now at (888) 602-6210 [** Call now ** ](tel:+18886026210) ## **Special Considerations for Summer Hiring ** ### **Interns and Students ** - Still may be considered employees under the IRS guidelines  - Often subject to FICA unless working under a qualifying school program  ### **Minor Employees (Teens) ** - You’re required to withhold and pay payroll taxes—even if they’re just 16 - Follow state child labor laws and tax rules  ### **Family Members ** - Children under 18 working for a **sole prop or partnership **owned by parents may be exempt from certain payroll taxes  - But still report wages properly and issue W-2s  ## **Avoiding Payroll Errors During the Busy Season ** Summer is hectic. Here are **common mistakes **small businesses make with seasonal payroll—and how to avoid them:  - **Misclassifying workers **as 1099 contractors to avoid payroll taxes - **Skipping state payroll registration **when hiring in new states  - **Missing payroll tax deposit deadlines ** - **Using outdated payroll software **that doesn’t reflect current tax rates or thresholds  Tip: If you’re hiring quickly, make sure your onboarding process includes **W-4s, I-9s, and state forms **to avoid compliance gaps. ## **Penalties for Payroll Tax Non-Compliance ** Getting payroll wrong isn’t just an inconvenience—it can be **expensive**:  - **Late deposits**: Penalties up to **15% **of the unpaid payroll tax  - **Failure to file forms**: Penalties range from **$50 to $280+ per missing form ** - **Misclassified employees**: You could owe **back taxes, penalties, and interest ** - **IRS or state audits**: These can be triggered by missing reports or inconsistent filings  ## Still Have Questions? Talk to an expert directly! Call now at (888) 602-6210 [** Call now ](tel:+18886026210) [ Schedule a call ** ](https://meetings.hubspot.com/jeremy721/web-consultation?uuid=27a565c2-a1b5-4aab-857e-4f61ccf3f514) ## **Bottom Line ** Payroll taxes don’t disappear just because your hires are temporary. Whether you're onboarding summer interns or teenage part-timers, it's essential to understand your withholding and filing responsibilities. The cost of ignoring them can be steep.  Need help staying compliant and on schedule this summer? LedgerFi offers stress-free payroll tax support for small businesses—seasonal or not. [Contact us today](https://meetings.hubspot.com/jeremy721/web-consultation?uuid=ca861878-cb0c-4847-bcce-aac584da8203) to keep your business penalty-free and fully compliant. ## Similar posts Business Structure ### [What is: Partnership?](https://www.ledgerfi.co/resources/what-is-partnership) Thinking of starting a partnership? Learn how business partnerships work, including types, taxes, pros, cons, and how to set one up—step-by-step. Nathan Hodgens May 22, 2025 Business Growth ### [Accounting vs. Bookkeeping: What’s the Difference & Why You Need Both](https://www.ledgerfi.co/resources/accounting-vs.-bookkeeping-whats-the-difference-why-you-need-both) What's the difference between accounting & bookkeeping? Learn how each supports your business & why you need both to stay compliant, and ready to... Nathan Hodgens Apr 21, 2025 Tax Optimization ### [QuickBooks Online: How to Report an SBA Loan Payment](https://www.ledgerfi.co/resources/quickbooks-online-how-to-report-an-sba-loan-payment) Learn how to record SBA loan payments in QBO with this step-by-step guide for small business owners. Simplify your bookkeeping with LedgerFi! Nathan Hodgens May 6, 2025 ## Talk to a Small Business Advisor Today ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Nathan Hodgens", "url" : "https://www.ledgerfi.co/resources/author/team-ledger" }, "dateModified" : "2026-04-13T19:05:51.907Z", "datePublished" : "2025-07-02T21:12:52.000Z", "headline" : "Payroll Tax Requirements: What Every Small Business Should Know This Summer", "image" : [ "https://www.ledgerfi.co/hubfs/AI-Generated%20Media/Images/A%20friendly%20summerthemed%20image%20of%20a%20small%20business%20owner%20eg%20shopkeeper%20or%20caf%20manager%20reviewing%20payroll%20documents%20with%20seasonal%20employees%20nearbysuch%20as%20interns%20or%20teens%20in%20casual%20uniforms%20Include%20visual%20cues%20like%20a%20clipboard%20with%20Payroll%20Forms%20IRS%20tax-3.jpeg" ], "mainEntityOfPage" : { "@id" : "https://www.ledgerfi.co/resources/payroll-tax-requirements-what-every-small-business-should-know-this-summer", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.ledgerfi.co/hubfs/ledger-logo-green%20(3).svg" }, "name" : "Ledger Fi" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.ledgerfi.co/#organization", "@type" : [ "AccountingService", "LocalBusiness" ], "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Cupertino", "addressRegion" : "CA", "postalCode" : "95014", "streetAddress" : "20065 Stevens Creek Blvd. Ste.B-1B" }, "areaServed" : [ { "@type" : "City", "containedInPlace" : { "@type" : "State", "name" : "California" }, "name" : "San Jose" }, { "@type" : "City", "containedInPlace" : { "@type" : "State", "name" : "California" }, "name" : "San Francisco" }, { "@type" : "City", "containedInPlace" : { "@type" : "State", "name" : "Illinois" }, "name" : "Chicago" }, { "@type" : "City", "containedInPlace" : { "@type" : "State", "name" : "California" }, "name" : "Irvine" }, { "@type" : "City", "containedInPlace" : { "@type" : "State", "name" : "Texas" }, "name" : "Austin" }, { "@type" : "City", "containedInPlace" : { "@type" : "State", "name" : "Arizona" }, "name" : "Phoenix" }, { "@type" : "City", "containedInPlace" : { "@type" : "State", "name" : "Florida" }, "name" : "Orlando" } ], "description" : "LedgerFi provides bookkeeping, payroll, and expert tax strategy coaching for small businesses. 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