Publication 80 - Circular Ss - Department Of The Treasury (Page 16 of 24) in pdf

12. Special Rules for Various Types of Employment and Payments

The following table summarizes the treatment of special classes of employment and special types of payments. Employers who need more detailed

information should consult their Internal Revenue Service representative or see the Employment Tax Regulations.

Treatment Under Employment Taxes

Special Classes of Employment

and Special Types of Payments

Social Security

Federal Unemployment

and Medicare

(U.S. Virgin Islands Only)

Agricultural labor:

1. Service on farm in connection with cultivating Taxable if $150 test or $2,500 test in section 6 is Taxable if either test in section 11 is met.

soil; raising or harvesting any agricultural or

met.

horticultural commodity; the care of livestock,

poultry, bees, fur-bearing animals, or wildlife.

2. Service in employ of owner or operator of farm Taxable if $150 test or $2,500 test in section 6 is Taxable if either test in section 11 is met.

if major part of the services are performed on

met.

farm, in management or maintenance, etc., of

farm, tools, or equipment, or in salvaging

timber, or clearing brush and other debris left

by hurricane.

3. In connection with the production and

Taxable if $150 test or $2,500 test in section 6 is Taxable if either test in section 11 is met.

harvesting of turpentine and other

met.

oleoresinous products.

4. Cotton ginning.

Taxable if $150 test or $2,500 test in section 6 is Taxable if either test in section 11 is met.

met.

5. In connection with hatching of poultry.

Taxable (not farmwork if performed off farm).*

Taxable if either test in section 11 is met.

6. In operation or maintenance of ditches,

Taxable if $150 test or $2,500 test in section 6 is Taxable if either test in section 11 is met.

canals, reservoirs, or waterways used only for

met.

supplying or storing water for farming

purposes and not owned or operated for profit.

7. In processing, packaging, delivering, etc., any

agricultural or horticultural commodity in its

unmanufactured state:

a. In employ of farm operator.

If operator produced over half of commodity

If employer produced over half of commodity

processed, taxable if $150 test or $2,500 test

processed, taxable if either test in section 11 is

in section 6 is met; otherwise taxable (not

met; otherwise taxable (not farmwork).

farmwork).*

b. In employ of unincorporated group of farm

If group produced all commodity processed,

If employer produced over half of commodity

operators (never more than 20).

taxable if $150 test or $2,500 test in section 6

processed, taxable if either test in section 11 is

is met; otherwise taxable (not farmwork).*

met; otherwise taxable (not farmwork).

c. In employ of other groups of farm operators Taxable (not farmwork).*

If employer produced over half of commodity

(including cooperative organizations and

processed, taxable if either test in section 11 is

commercial handlers).

met; otherwise taxable (not farmwork).

8. Handling or processing commodities after

Taxable (not farmwork).*

Taxable (not farmwork).

delivery to terminal market for commercial

canning or freezing.

9. Household employees on farm operated for

Taxable if paid $1,400 or more in cash in 2004.

Taxable if either test in section 11 is met.

profit.

Exempt if performed by an individual who is

under age 18 during any part of the calendar

year and housework is not the principal

occupation of the employee.

10. Service not in the course of employer’s trade Taxable if $150 test or $2,500 test in section 6 is Taxable only if $50 or more is paid in a quarter

or business on farm operated for profit (cash

met; unless performed by parent in employ of

and employee works on 24 or more different

payments only).

child.

days in that quarter or on 24 or more days in

preceding quarter.

Aliens:

1. Resident

a. Service performed in U.S.**

Same as U.S. citizen; exempt if any part of

Same as U.S. citizen.

service as crew member of foreign vessel or

aircraft is performed outside U.S.

b. Service performed outside U.S.**

Taxable if: (a) working for an American employer Exempt unless on or in connection with an

or (b) an American employer by agreement

American vessel or aircraft and either

covers U.S. citizens and residents employed

performed under contract made in U.S. or

by its foreign affiliates.

alien is employed on such vessel or aircraft

when it touches U.S. port.

* Wages for services not considered farmwork are reported on Form 941-SS. Other exemptions may apply. See sections 4 and 9.

** U.S. includes U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

Page 16

Publication 80 - Circular Ss - Department Of The Treasury Page 16

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