If farm workers are provided by a crew leader, the crew leader may
be the employer of the workers.
Social security and Medicare taxes.
For social security and Medicare tax purposes, the crew leader is
considered the employer of the workers if both the following
requirements are met.
- The crew leader pays (either on his or her own behalf or on
behalf of the farmer) the workers for their farm labor.
- The crew leader has not entered into a written agreement
with the farmer under which the crew leader is designated as an
employee of the farmer.
Federal income tax withholding.
If the crew leader is considered the employer for social security
and Medicare tax purposes, the crew leader is considered the employer
for federal income tax withholding purposes.
Federal unemployment (FUTA) tax.
For FUTA tax purposes, the crew leader is considered the employer
of the workers if, in addition to the earlier requirements:
- The crew leader is registered under the Migrant and Seasonal
Agricultural Worker Protection Act, or
- Substantially all crew members operate or maintain
mechanized equipment provided by the crew leader as part of the
service to the farmer.
The farmer is considered the employer of workers furnished by a
crew leader in all other situations. In addition, the farmer is
considered the employer of workers furnished by a registered crew
leader if the workers are the employees of the farmer under the
common-law test. For example, some farmers employ individuals to
recruit farm workers exclusively for them. Although these individuals
may be required to register under the Migrant and Seasonal
Agricultural Worker Protection Act, the workers are employed directly
by the farmer. The farmer is considered to be the employer in these
cases. For information concerning who is a common-law employee, see
section 1 of Publication 15-A.
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