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Payroll Taxes Tipsheet--How much can I pay workers before I need to pay attention to payroll tax, etc.?

Summary

It can seem like a maze to navigate various payroll tax requirements when hiring farm employees. Payroll taxes include state and federal income tax withholdings, state and federal unemployment taxes, and federal social security and Medicare tax withholdings and contributions. How do you know when to pay what? State and federal laws provide farm labor exemptions for certain payroll tax requirements if specified thresholds are met. This tipsheet offers user-friendly charts to help farmers in Wisconsin and Minnesota identify whether and when state and federal payroll tax obligations kick in. Farmers in other states may find the information on federal taxes useful. However, state payroll tax obligations vary by state. Be sure to confirm your state’s specific tax obligations with a tax attorney or accountant before taking action.