Landscaping Business With Seasonal Hires: Add ITIN Workers to Payroll

Seasonal hiring is part of running a landscaping business. When the weather warms up, crews grow quickly. New workers are brought in to handle mowing, planting, irrigation, and clean-ups.

Many landscaping companies rely on workers who have an ITIN (Individual Taxpayer Identification Number) instead of a Social Security number. This is common in the industry—but it’s also where many employers run into confusion.

Some payroll companies say they can’t add ITIN workers to payroll. Others suggest paying them as 1099 contractors, even when they clearly function as employees.

Both approaches can create serious compliance problems.

The reality is simple: ITIN workers can absolutely be added to payroll as W-2 employees, and doing it correctly protects your business.

Why Landscaping Companies Often Hire ITIN Workers

Landscaping is one of the most seasonal industries in the country. Crews expand quickly in the spring and summer and often shrink again once the busy season ends.

Because of this, many landscaping companies hire workers who:

Are new to the U.S. workforce
Have an ITIN issued by the IRS
Are looking for seasonal or project-based work

This is very common in landscaping. The key issue isn’t hiring these workers—it’s how they are classified and paid.

The Biggest Mistake: Paying Seasonal Workers as 1099 Contractors

One of the most common mistakes landscaping companies make is paying ITIN workers as independent contractors (1099).

This often happens because:

A payroll company says they cannot process ITIN workers
An accountant suggests it as the “easier” option
The business owner assumes seasonal workers must be contractors

But in most landscaping businesses, workers are employees, not contractors.

If your company:

Sets their schedule
Provides equipment or tools
Assigns them to job sites
Directs how the work is performed

Then they typically must be paid as W-2 employees.

Misclassifying employees as contractors can trigger serious issues if investigated by the Department of Labor or state labor agencies.

How to Properly Add ITIN Workers to Your Payroll

Adding ITIN workers to payroll is actually straightforward when done correctly.

1. Collect the Correct Employee Documents

Just like any other employee, ITIN workers complete standard hiring paperwork.

This typically includes:

Form W-4 (Employee Withholding Certificate)
Form I-9 (Employment Eligibility Verification)
Their ITIN number issued by the IRS

The ITIN is used for tax reporting instead of a Social Security number.

2. Pay Them Through Payroll as W-2 Employees

Once the employee is set up, they should be paid through payroll just like any other worker.

That means:

Taxes are withheld
Wages are reported properly
Payroll records are maintained
A W-2 is issued at the end of the year

Unfortunately, some payroll companies place all zeros or all ones where the ITIN should appear on the W-2 to avoid the work involved in filing it correctly. This creates reporting issues with the IRS and can cause problems later.

Accurate reporting matters.

3. Include Them in Workers’ Compensation Coverage

Landscaping work can be physically demanding, and injuries can happen.

When workers are on payroll as W-2 employees, they can be properly included in:

Workers’ compensation coverage
Payroll tax filings
Wage reporting

This protects both the employee and the employer.

4. Track Hours and Overtime Properly

During peak season, landscaping crews often work long days.

Employers still need to follow wage and hour laws, including:

Minimum wage requirements
Overtime rules
Accurate time tracking

Using a timekeeping system integrated with payroll helps maintain accurate records and ensures payroll calculations are correct.

A Payroll System That Works for Seasonal Businesses

Many landscaping companies worry that putting seasonal workers on payroll will lock them into paying payroll fees all year.

That’s not how our system works.

Our payroll platform is based on active employees on payroll.

This means:

When your crew grows during the busy season, your payroll adjusts to match your workforce.
When the season slows down and employees are no longer active, your payroll billing decreases accordingly.
In the months when your business isn’t operating or payroll volume is lower, you aren’t paying for employees who aren’t working.

For seasonal industries like landscaping, this approach keeps payroll costs aligned with the size of your crew.

Why Some Payroll Companies Avoid ITIN Workers

Many national payroll providers simply refuse to handle ITIN employees.

Why?

Because doing it correctly requires:

Proper tax reporting
Accurate W-2 preparation
More hands-on service

Instead of handling it properly, some providers push employers toward contractor payments or incomplete reporting.

It may seem easier at first, but it can create major compliance risks later.

The Bottom Line for Landscaping Businesses

If you run a landscaping company and hire seasonal workers, the safest approach is straightforward:

Add your ITIN workers to payroll as W-2 employees and report their wages correctly.

This protects your business, ensures workers are paid properly, and reduces the risk of problems with labor agencies or tax reporting.

If you're curious what it would cost to set this up correctly, you can use our instant price calculator to see the price to work with Baron Payroll.

It takes less than a minute to get your price.