Employers (and crew leaders) of agricultural employees subject to FICA must withhold income taxes from their employees’ wages. Employers of agricultural employees who do not qualify for FICA are required to withhold income taxes if both parties enter into a voluntary agreement (7).
How much do farmers pay migrant workers?
Today, migrant farm workers make, on average, just under $13 an hour, a rate that varies by region. By failing to conduct its traditional Agricultural Labor Survey, such workers could instead be paid just the minimum wage — in Georgia, Idaho, Iowa and other agricultural powerhouses, that’s as low as $7.25 an hour.
Do you have to pay taxes to an H-2A agricultural worker?
An H-2A agricultural worker who is not required to make federal estimated tax payments may wish to make such payments anyway in order to avoid a large balance of tax due when filing a U.S. federal individual income tax return.
How are foreign agricultural workers exempt from taxes?
Exemption from Withholding of U.S. Federal Income Tax and U.S. FICA Taxes Foreign agricultural workers temporarily admitted into the United States on H-2A visas are exempt from U.S. Social Security and Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa.
What is the H-2A visa program for temporary agricultural workers?
H-2A Program for Temporary Agricultural Workers What is the H-2A visa? The H-2A visa is a nonimmigrant visa program that allows US employers to bring foreign nationals to the US to fill low-skill, temporary or seasonal agricultural jobs for which US workers are not available. For how long can a worker stay in the US on an H-2A visa?
How does income tax treaty affect agricultural workers?
Income tax treaties may affect the taxation of H-2A agricultural workers in the United States.
