Certain agricultural workers employed by farmers and paid directly by the farm operator are classified differently for tax purposes. These individuals are generally exempt from Social Security and Medicare taxes withheld from their wages. For instance, a seasonal worker hired by an orchard owner to harvest apples and paid directly by the orchard would typically fall under this classification.
This distinct categorization simplifies payroll administration for agricultural employers and reduces the tax burden on certain agricultural workers. Historically, this distinction acknowledged the seasonal and often temporary nature of much agricultural labor. Proper classification is essential for both employers and employees to ensure compliance with tax laws and avoid penalties.
