Overtime and Payroll Management: What Businesses Need to Know

Posted by Florida Resource Management on December 12, 2025

Managing HR in Florida means staying ahead of changing regulations, rising employee expectations, and seasonal hiring demands. As we enter the peak retail and hospitality months, the pressure on your payroll system intensifies. In this article, we’ll share key strategies small and mid-sized businesses can use to protect their teams and grow sustainably with the help of flexible HR solutions.

For many employers, the holiday season brings a surge in hours, extra staffing, and the complexity of year-end bonuses. Navigating these requirements without a robust system can lead to compliance errors and employee dissatisfaction. At Florida Resource Management (FRM), we provide the expertise needed to keep your payroll accurate and on time, regardless of seasonal fluctuations.

FRM at a Glance: Florida Resource Management is a family-owned business founded in 2012, specializing in customer service, payroll, benefits, workers’ compensation, and core HR functions. Headquartered in Sarasota, Florida, with satellite offices in Port St. Lucie and Pensacola, we proudly serve approximately 500 clients and support 10,000+ worksite employees. Our reach spans the greater Southeast region, including Florida, Georgia, Alabama, Louisiana, North Carolina, Tennessee, and Kentucky. With over 100 years of combined industry experience on our service team, we deliver flexible, high-touch HR solutions across a wide range of industries, enabling business leaders to stay focused on growth and success.

Navigating Overtime and Time-Off Compliance

In the Southeast's tourism-driven economy, "peak season" often means mandatory overtime and complex scheduling. Failure to track these hours properly can lead to violations of the Fair Labor Standards Act (FLSA).

Managing the Holiday Surge

  • Accurate Overtime Calculations: Under the FLSA, non-exempt employees must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rate of pay.
  • Holiday Pay vs. Overtime: Many employers offer "holiday pay" (extra pay for working on a holiday). It is vital to remember that under federal law, holiday pay is a matter of agreement between employer and employee; however, those hours still count toward the 40-hour workweek threshold for overtime purposes.
  • Tracking Time-Off: With many employees requesting time off during the holidays, maintaining a clear, documented PTO policy is essential to avoid staffing shortages and payroll disputes.

Payroll Tips for Seasonal Staff and Bonuses

Handling a temporary workforce and performance-based bonuses requires a meticulous eye for detail to ensure tax compliance and timely distribution.

Managing Seasonal Staffing

Hiring seasonal workers in Florida often involves rapid onboarding. Ensure you have:

  1. Correct Employee Classification: Properly distinguish between temporary W-2 employees and 1099 contractors to avoid misclassification penalties.
  2. Automated Onboarding: Using payroll services that integrate onboarding paperwork ensures that tax withholdings (W-4s) and I-9s are completed accurately from day one.

Year-End Bonuses and Tax Withholding

Bonuses are considered "supplemental wages" by the IRS. Employers generally have two options for federal income tax withholding:

  • The Percentage Method: Withholding at a flat rate (currently 22%).
  • The Aggregate Method: Adding the bonus to the regular wages for the most recent payroll period and calculating withholding on the total.
FeatureIn-House PayrollFRM Payroll Services
Tax ComplianceManual tracking of changing ratesAutomated, guaranteed accuracy
Overtime TrackingProne to human errorIntegrated time-tracking software
Multi-State SupportComplex and time-consumingSeamless across the Southeast
Customer SupportInternal resource drainDedicated FRM specialist

How FRM Simplifies Multi-Location Holiday Payroll

As a leading professional employer organization in the Southeast. Florida Resource Management understands that holiday demands aren't restricted to a single office. Many of our clients operate across multiple sites in Florida and surrounding states.

  • Centralized Data: Our systems allow managers at different locations to input hours while the business owner maintains a "birds-eye view" of total labor costs.
  • Compliance Across Borders: If you have locations in Florida and Georgia, we manage the specific state unemployment tax (SUTA) and reporting requirements for each.
  • Workers' Comp Integration: Our payroll services Florida businesses rely on include "pay-as-you-go" workers' comp, meaning your premiums adjust automatically based on your actual holiday payroll, preventing large audit surprises.

Frequently Asked Questions (FAQs)

Q: Do I have to pay overtime if my employee works on Christmas Day?

A: Federal law does not require extra pay for weekend or holiday work unless that work pushes the employee over the 40-hour weekly limit. However, many Southeast businesses offer it as an incentive to maintain morale during peak months.

Q: How does a PEO help with year-end payroll?

A: As a PEO, FRM handles the generation and filing of W-2s and 1099s, reconciles tax payments, and ensures your business meets all year-end IRS deadlines, allowing you to focus on your customers.


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