Seasonal holiday jobs: what to know about the paycheck, taxes, and benefits

Every fall, millions of employers hire extra workers to handle the holiday rush. Retail stores, shipping companies, and warehouses all need more hands from about October through January. These jobs can be a real lifeline if you need extra cash for gifts, groceries, or bills.

But before you take a seasonal job, it helps to know what to expect. The paycheck, the taxes, and how that income affects any benefits you receive can all surprise you if you are not prepared.

Where to find seasonal jobs

Some of the biggest hirers every year include major retailers, online shopping warehouses, delivery and package services, grocery stores, and shipping hubs. You can find openings by:

• Searching company career pages directly (Amazon, UPS, FedEx, Target, Walmart, and others post thousands of openings)
• Using free job boards like Indeed, LinkedIn, or your local workforce development center
• Walking into stores in your area and asking for a seasonal application
• Visiting your state's unemployment office website, which often lists seasonal work

Many of these jobs do not require a resume or prior experience. Some offer same-week or next-day pay.

What your paycheck will look like

Seasonal pay is usually hourly. Some positions pay close to or above minimum wage for your state. Others, especially warehouse and delivery roles, may pay more.

Here is what gets taken out of your check:

• Federal income tax (how much depends on what you put on your W-4 form)
• State income tax if your state has one
• Social Security tax (6.2% of your wages)
• Medicare tax (1.45% of your wages)

Your employer will give you a W-2 form by January 31. You will use that to file your taxes in the spring.

If you work a seasonal job and also have a regular job, your total income for the year goes up. That could mean you owe more in taxes than usual. It is a good idea to set aside a small amount from each seasonal paycheck, maybe 10 to 15 percent, just in case.

How extra income can affect government benefits

This is one of the most important things to think about before you take a seasonal job.

If you receive SNAP (food stamps), Medicaid, housing assistance, SSI, or other income-based benefits, extra earnings may affect your eligibility or benefit amount. Rules vary by state and by program.

Before you start, contact your local benefits office or call 211 to ask how extra income would be counted. Some programs have rules that protect short-term or seasonal earnings. Others count every dollar. Knowing ahead of time helps you plan.

Do not assume your benefits will stay the same just because the job is temporary.

How to avoid job scams

Holiday hiring scams spike every year right along with real job openings. Here is how to protect yourself:

• Never pay money to apply for a job or to get hired. Real employers do not charge fees.
• Be very careful with job postings that only communicate through text or messaging apps and never ask you to come in.
• Do not give out your Social Security number, bank account, or debit card number until after you have been officially hired through a verifiable company.
• If a job promises very high pay for very easy work with no experience, slow down and research the company name before responding.
• Use company websites directly instead of clicking links in unsolicited emails or texts.

If something feels off, trust that feeling. Report suspected scams to the FTC at reportfraud.ftc.gov.

Making the money work for you

A seasonal job is a short-term tool. The goal is to come out of the holidays without new debt.

Decide before your first paycheck how you will use the money. Cover necessities first. Then set a gift and holiday spending limit and stick to it. Even putting a small amount into savings creates a cushion for January, when bills from holiday spending can hit hard.

You worked for that money. Make sure it goes where you need it most.