It’s common to think of an “employer” as a person or company that owns and operates a retail store or restaurant. However, it doesn’t cover all the bases, especially for tax purposes. If you have a farm and have workers who help you grow and harvest crops or raise livestock, then you’re probably an “employer” for purposes of employment taxes.

Employment taxes include several different things:

  • Income taxes
  • Social Security and Medicare taxes, and
  • Federal unemployment tax


Employment Taxes – Basics

As an employer, you’re required to withhold from your workers’ salaries or wages and/or pay various employment taxes. Specifically, you must:

  • Withhold federal income taxes from your employees’ wages, which you usually do with each paycheck. Your employees fill out a W-4 Form, which tells you how much to withhold. Also, you have to withhold state income taxes, and maybe local income taxes, too
  • Withhold Federal Insurance Contributions Act (FICA) taxes, which you probably know as Social Security and Medicare taxes. Social Security taxes pay for your employees’ old-age, survivors, and disability insurance. Medicare taxes pay for hospital insurance
  • Pay a share of FICA taxes that’s equal to what your workers pay

Agricultural or Farm Workers


However, some farmers hire “crew bosses” or “crew leaders” as independent contractors to hire workers and to take care of their wages and taxes. In such cases, the crew leader is the employer for tax purposes. However, if the crew leader is really your employee, then you’re responsible for the taxes.











If you don’t pay employment taxes on time, the IRS can charge you a penalty. You’ll be charged interest on the amount of the unpaid taxes. The interest rate may my 2, 5, 10 or 15 percent; it depends on how late you are on making the required payment or deposit.


Questions for Your Attorney

  • I use a crew boss to provide enough labor to harvest my crops, so what should I do to make sure that I’m not treated as the employer for tax purposes?