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Current Year Tax Map
Publication 51
taxmap/pubs/p51-002.htm#en_us_publink1000195518

3. Wages and Other Compensation(p9)

rule
Cash wages that you pay to employees for farmwork are generally subject to social security tax and Medicare tax. You may also be required to withhold, deposit, and report Additional Medicare Tax. See section 4 for more information. If the wages are subject to social security and Medicare taxes, they are also subject to federal income tax withholding. You may also be liable for FUTA tax, which is not withheld by you or paid by the employee. FUTA tax is discussed in section 10. Cash wages include checks, money orders, etc. Do not count as cash wages the value of food, lodging, and other noncash items.
For more information on what payments are considered taxable wages, see Publication 15 (Circular E).
taxmap/pubs/p51-002.htm#en_us_publink1000195519

Commodity wages.(p9)

rule
Commodity wages are not cash and are not subject to social security and Medicare taxes or federal income tax withholding. However, noncash payments, including commodity wages, are treated as cash wages (see above) if the substance of the transaction is a cash payment. These noncash payments are subject to social security and Medicare taxes and federal income tax withholding.
taxmap/pubs/p51-002.htm#en_us_publink1000264465

Other compensation.(p9)

rule
Publications 15-A and 15-B discuss other forms of compensation that may be taxable.
taxmap/pubs/p51-002.htm#en_us_publink1000195520

Family members.(p9)

rule
Generally, the wages that you pay to family members who are your employees are subject to social security and Medicare taxes, federal income tax withholding, and FUTA tax. However, certain exemptions may apply for your child, spouse, or parent. See the table, How Do Employment Taxes Apply to Farmwork, in
section 12.
taxmap/pubs/p51-002.htm#en_us_publink1000195522

Household employees.(p9)

rule
The wages of an employee who performs household services, such as a maid, babysitter, gardener, or cook, in your home are not subject to social security and Medicare taxes if you pay that employee cash wages of less than $1,800 in 2013.
Social security and Medicare taxes do not apply to cash wages for housework in your private home if it was done by your spouse or your child under age 21. Nor do the taxes apply to housework done by your parent unless:
For more information, see Publication 926, Household Employer's Tax Guide.
EIC
Wages for household work may not be a deductible farm expense. See Publication 225, Farmer's Tax Guide.
taxmap/pubs/p51-002.htm#en_us_publink1000264466

Share farmers.(p9)

rule
You do not have to withhold or pay social security and Medicare taxes on amounts paid to share farmers under share-farming arrangements.
taxmap/pubs/p51-002.htm#en_us_publink1000195524

Compensation paid to H-2A visa holders.(p9)

rule
Report compensation of $600 or more paid to foreign agricultural workers who entered the country on H-2A visas in box 1 of Form W-2 but do not report it as social security wages (box 3) or Medicare wages (box 5) on Form W-2 because compensation paid to H-2A workers for agricultural labor performed in connection with this visa is not subject to social security and Medicare taxes. On Form W-2, do not check box 13 (Statutory employee), as H-2A workers are not statutory employees. An employer is not required to withhold federal income tax from compensation it pays an H-2A worker for agricultural labor performed in connection with this visa unless the worker asks for withholding and the employer agrees. In that case, the worker must give the employer a completed Form W-4. Federal income tax withheld should be reported in box 2 of Form W-2. These reporting rules apply when the H-2A worker provides his or her taxpayer identification number (TIN) to the employer.
For rules relating to backup withholding and reporting when the H-2A worker does not provide a TIN, see the Instructions for Form 1099-MISC and the Instructions for Form 945.