Does My Business Have To Provide Part-Time Employees with Benefits?

“Does My Business Have To Provide Part-Time Employees with Benefits?"

By Tiffani Clements

If you’re looking to hire part-time employees to avoid offering benefits, you might want to read the information outlined in this article.  While many employee benefits – such as paid time off - are not mandated by federal law, there are benefits which you are legally responsible for providing any employee working for your business, whether they work full-time or part-time.

Benefits Required By Law

The following are required benefits that employers must extend to part-time employees.  For a primer on employment laws and regulations, see SBA.gov’s Labor Law Guide.

• Employment and Labor Laws- Employment laws, such as discriminationand workplace safetyregulations, apply to part-time workers. Additionally, under the Fair Labor Standards Act (FLSA), part-time and full-time employees have equal rights concerning minimum wage, overtime pay, recordkeeping and child labor.
• Unemployment Benefits –You will likely need to comply with unemployment benefit obligations for part-time employees.  Contact your state department of laborto understand your local requirements.

Voluntary Benefits

• “Fringe Benefits”- The majority of common leave benefits offered by employers are not required by federal law, and are instead offered to employees as part of an overall compensation and benefits package. These leave benefits include retirement plans, holiday/vacation paid time off, jury duty, personal leave, sick leave, and funeral/bereavement leave. 

Other Considerations

• Taxes -According to IRS.gov, part-time and seasonal employees are subject to the same tax withholding rules that apply to other employees. For details on your tax reporting responsibilities, refer to the IRS.gov regulations on businesses with employees.

• State Labor Laws –Some states have enacted requirements stricter than what the Federal regulations require.  Check with your state department of laborto understand if there are additional or different benefit regulations for part-time employees in your area.

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