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[ Tax Law Manual - TOC ] [ Ch 1 - Employing Unit ] [ Ch 2 - Employment ] [ Ch 3 - Employer ] [ Ch 4 - Taxes ] [ Ch 5 - Reports & Records ]
[ 3.1 - General Definition ] [ 3.2 - Section 201.021 ] [ 3.3 - Successor - Section 201-022 ] [ 3.4 - 501(c)(3) Employer ] [ 3.5 - Employing Unit has Filed an Election ] [ 3.6 - Employing Unit Liable Under FUTA ] [ 3.7 - Political Subdivision Employers ] [ 3.8 - Domestic Employers ] [ 3.9 - Farm and Ranch ] [ 3.10 - Staff Leasing ] [ 3.11 - Termination of Coverage ] [ 3.12 - Alternate Subject Dates ] [ Ch 3 - Index ]

Chapter 3:  Employer

comments to: Tax Department

3.9     Farm and Ranch

[ 3.9.1 - Sec 201.028 ] [ 3.9.2 - Definitions ] [ 3.9.3 - Application to Labor Agent ]

This section discusses the aspects of the law that specifically apply to farm and ranch employers.

3.9.1     Section 201.028

  1. In this subtitle, "employer" also means an employing unit that paid wages for, or employed individuals in, farm and ranch labor in accordance with this section, Section 201.047, or Section 204.009.

  2. In this section, an employer shall not be treated as an employer for wages paid for a service other than service performed by:
  1. a seasonal worker employed on a truck farm, orchard, or vineyard;
  2. a farm and ranch laborer who is a migrant worker; or
  3. a seasonal worker who:
  1. who works for a farmer, ranch operator, or labor agent who employs migrant workers; and
  2. does the same work at the same time and location as migrants workers.
  3. Subsection (b) does not apply if the employer is an employer with respect to farm and ranch labor performed under Section 201.047(a)(4).

Comment: Discussion of Section 201.047 may be found in the Field Tax Law Manual, Subsection 2.1.14, Farm and Ranch Labor as Employment.

Discussion of Section 204.009 may be found in Section 3.9.3 of this manual.

Unless the above conditions of liability have been met, employers already subject under some other provision of the Act would not be required to report their workers. Even though liable employers should report wages for regular and farm and ranch employees under one account number, liability under Section 201.028 should be determined independently.

3.9.2     Definitions

The definitions which will be used in administration of Section 201.028, 201.047 and 204.009 are:

  1. Farm and ranch labor: All services performed:
  1. On a farm or ranch in the employ of any person in connection with cultivating the soil or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur bearing wildlife; or,

  2. In the employ of the owner or tenant or other operator of a farm or ranch, in connection with the operation, management, conservation, improvement, or maintenance of such farm or ranch and its tools and equipment, if the major part of such service is performed on a farm or ranch."
  1. Truck farm: A farm on which fruits, garden vegetables for human consumption, potatoes, sugar beets, or vegetable seeds are produced for market.

  2. Orchard: A farm devoted primarily to the planting, cultivating, growing or harvesting of fruits or nuts.

  3. Vineyard: A farm devoted primarily to the planting, cultivating, growing or harvesting of grapes.

  4. Seasonal worker: An individual who is employed in farm or ranch labor of a seasonal or temporary nature and is not required to be absent over night from his or her permanent place of residence.

  5. Migrant worker: An individual who is employed in farm or ranch labor of a seasonal or temporary nature and who is required to be absent overnight from his or her permanent place of residence.

  6. Other farm or ranch laborer: An individual employed in farm or ranch lab or who is not a seasonal worker nor a migrant worker.

  7. Labor agent: Any person in Texas who, for a fee offers or attempts to procure, or procures employment for employees, or without a fee offers or attempts to procure or procures employment for common or agricultural workers; or any person who for a fee attempts to procure, or procures employees for an employer, or without a fee offers or attempts to procure common or agricultural workers for employers, or any person, regardless whether a fee is received or due, offers or attempts to supply or supplies the services of common or agricultural workers to any person. The term "Labor Agent" includes any person who, for a fee, employs workers to render personal services in connection with the production of any farm products to, for, or under the direction of a third person, or who recruits, solicits, supplies, or hires workers on behalf of an employer engaged in the growing or producing of farm products, and who, for a fee provides in connection therewith one or more of the following services: furnishes board, lodging, or transportation for such workers; supervises, times, checks, counts, weights, or otherwise directs or measures the work; or disburses wage payments to the workers. For further details, see the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. Section 1801 et seq.).

  8. Farm Labor Contractor: Any person, other than an agricultural employer, an agricultural association, or an employee of an agricultural employer or agricultural association, who, for any money or other valuable consideration paid or promised to be paid, performs any farm labor contracting activity.

  9. Farm Labor Contracting Activity: Recruiting, soliciting, hiring, employing, furnishing, or transporting any migrant or seasonal agricultural worker.

3.9.3     Application to Labor Agent

Under Section 204.009:

  1. A labor agent who furnishes a farm and ranch laborer is liable for the payment of a tax under this subtitle as is the labor agent were the employer of the laborer, without regard to any factor used to determine an employer-employee relationship, including the right of control.

  2. If a labor agent does not pay the tax in accordance with this subtitle, a person who contracts

  3. with the labor agent for the services of a farm and ranch laborer is jointly and severally liable with the labor agent for payment of the tax under this subtitle as an employer.

  4. A labor agent shall notify each person with whom the labor agent contracts whether the labor agent pays the tax under this subtitle.

  5. A labor agent who pays the tax shall present evidence of payment to each person with whom the labor agent contracts.

  6. In this section, "labor agent" means a person who is a farm labor contractor under the Migrant and Seasonal Agricultural Worker Protection Act (29 U.S.C. Section 1801 et seq.).
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Last Revision: July 21, 2009