IRS Publication 51

Definition of 'IRS Publication 51 '


A document published by the Internal Revenue Service that provides the employers of agricultural workers with guidance on how to comply with tax withholdings. Farm employers are sometimes required to register with the U.S. Department of Labor, and are not allowed to label farm employees as independent contractors. Agricultural employers are to report each individual employee's Social Security, Medicare and federal income taxes on Form 943, and Federal Unemployment Tax (FUTA) on Form 940. Both forms are due by January 31.

Investopedia explains 'IRS Publication 51 '


Most farm workers pay Social Security and other federal taxes, just like non-agricultural employees. Foreign agricultural workers in the United States with H-2A visas are exempt from Social Security and Medicare taxes. Payments made to foreign workers are not considered wages and thus do not have income taxes withheld, but are reported on Form 1099-MISC and still are taxed.

More information about taxes for agricultural workers can be found in Publication 225 (Farmer's Tax Guide). Employers of non-agricultural workers should refer to Publication 15 (Employer's Tax Guide), Publication 15-A (Employer's Supplemental Tax Guide) and Publication 15-B (Tax Guide to Fringe Benefits).



comments powered by Disqus
Hot Definitions
  1. Marginal Analysis

    An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. Marginal analysis is also widely used in microeconomics when analyzing how a complex system is affected by marginal manipulation of its comprising variables.
  2. Treasury Inflation Protected Securities - TIPS

    A treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation. TIPS are considered an extremely low-risk investment since they are backed by the U.S. government and since their par value rises with inflation, as measured by the Consumer Price Index, while their interest rate remains fixed.
  3. Gilt-Edged Switching

    The selling and repurchasing of certain high-grade stocks or bonds to capture profits. Gilt-edged switching involves gilt-edged security, which can be high-grade stock or bond issued by a financially stable company such as the Blue Chip companies or by certain governments.
  4. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP's cash flow, whereas the general partner is the party responsible for managing the MLP's affairs and receives compensation that is linked to the performance of the venture.
  5. Class Action

    An action where an individual represents a group in a court claim. The judgment from the suit is for all the members of the group (class).
  6. Retail Sales

    An aggregated measure of the sales of retail goods over a stated time period, typically based on a data sampling that is extrapolated to model an entire country. In the U.S., the retail sales report is a monthly economic indicator compiled and released by the Census Bureau and the Department of Commerce.
Trading Center