Employment of Family Members in Agriculture

This guide addresses the income tax and regulatory aspects of employing family members in agricultural operations. It outlines the responsibilities of employers, including the requirement to issue Form W-2 to employees and to withhold payroll taxes. The document explains the exemptions that may apply to family members, such as children under certain age limits, and emphasizes the importance of understanding both federal and state regulations, which may differ. It details the necessity of obtaining an employer identification number (EIN) and the documentation required for all employees, including family members, such as Form I-9 and Form W-4. The guide also discusses workers' compensation laws and the specific requirements for agricultural employers. Furthermore, it provides references to IRS publications relevant to family employment in agriculture, ensuring that employers are informed about their obligations and the necessary forms to comply with tax regulations.