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.

BREAKING DOWN '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).

RELATED TERMS
  1. IRS Publication 15 - Employer's ...

    The IRS Publication 15- Employer’s Tax Guide is published by ...
  2. IRS Publication 15-A - Employer's ...

    IRS Publication 15-A is the publication that provides employers ...
  3. Investment Farm

    An investment farm is an agricultural business operation owned ...
  4. Retention Tax

    A retention tax is any tax withheld from an employee's paycheck ...
  5. Payroll Tax

    A payroll tax is a tax an employer withholds from an employee's ...
  6. Federal Unemployment Tax Act - ...

    FUTA is a legislation that allows the government to tax businesses ...
Related Articles
  1. Taxes

    Have Household Help? Don't Get In Tax Trouble

    Hiring household workers can be a complicated process. Know what the government requires so you can prevent penalties and problems down the road.
  2. Retirement

    Employers: Don't Forget IRS Form 941

    Use Form 941 to report employment taxes on your business.
  3. Insights

    How To Invest In Farming Without Owning a Farm

    Investors have a number of ways to get exposure to the agriculture and farming sector besides actually having to buy a farm.
  4. Taxes

    Become an LLC and Save Taxes Under Trump (Maybe)

    President Trump's tax reform bill places a flat 15% tax on LLCs, regardless of size or annual revenue.
  5. Financial Advisor

    3 Federal Income Tax Facts You Didn't Know

    Learn about three federal income tax facts that most Americans may not know from one of the most trusted financial resources on the Web.
  6. Taxes

    Do Canadians Really Pay More Taxes Than Americans?

    We look at the difference in tax rates and services offered on both sides of the border.
  7. Retirement

    When Do I Stop Paying Social Security Tax?

    Here's a look at how one almost never stops paying social security to tax, unless you belong to one of these special groups.
  8. Taxes

    Which Countries Have the Highest Taxes on High Incomes?

    For high earners in these countries, the tax rate percentage on income exceeding a certain threshold can reach into the high 50s and low 60s.
  9. Personal Finance

    Coming Soon: A Bigger Paycheck

    Changes are coming to your paycheck in 2018. The 2017 tax bill will likely result in lower withholding amounts and more money in your pocket.
  10. Taxes

    Taxes: Who Pays And How Much?

    When it comes to taxes, the debate is endless on who pays what, especially in Congress. With no new initiatives in sight, let's take a look at who is paying now.
Trading Center