These two sections of the act outline the provisions under which employing units would become subject under farm and ranch employment for state unemployment tax.
These two sections of the act outline the provisions under which employing units would become subject under farm and ranch employment for state unemployment tax.
All services performed
| Truck Farm: | A farm on which fruits, garden vegetables for human consumption, potatoes, or vegetable seeds are produced for market. Excluding Sugar Beets/Sugar Cane production. |
| Orchard: | A farm devoted primarily to the planting, cultivating, growing or harvesting of fruits or nuts. |
| Vineyard: | A farm devoted primarily to the planting cultivating, growing or harvesting of grapes. |
| 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 overnight from his or her permanent place of residence. |
| 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. |
| Other Farm or Ranch laborer: | An individual employed in farm or ranch labor who is not a seasonal worker nor a migrant worker. |
| Labor Agent: | A person in Texas who furnishes farm and ranch laborers. The labor agent is liable for the payment as if the labor agent were the employer without regard to any factor used to determine an employer-employee relationship including the right of control. While the labor agent is responsible for notifying and presenting evidence of payment, a farmer who contracts with the labor agent is jointly and severally liable. If the labor agent does not pay the tax due, the farmer is liable for payment of the tax due on the wages paid by the labor agent while contracting with the farmer. |
Liability under these two sections of the law is normally based on a Status Report specifically designed for agricultural employment (FORM C1FR).
An employing unit becomes liable under:
| SECTION 8 CATEGORY 1 | By employing a seasonal worker on a truck farm, orchard or vineyard. Regardless of weeks of employment or wage criteria. |
| SECTION 8 CATEGORY 1 | By paying farm workers other than migrant or seasonal workers six thousand two hundred fifty dollars ($6,250.00) or more in cash wages during any calendar quarter in the current or preceding year. Note: Only cash wages are used to determine liability. If an employee is given room and board in lieu of, or in addition to cash wages, it is not to be considered when determining if the $6,250.00 threshold has been met. Once liability has been established, the "fair market value" of remuneration other than cash is taxable and should be reported as wages. |
| SECTION 8 CATEGORY 1 | By employing three (3) or more farm workers in some portion of a day in twenty weeks of the current or preceding calendar year. |
| SECTION 8 CATEGORY 2 | By employing a migrant worker. Regardless of weeks of employment or wage criteria. |
| SECTION 8 CATEGORY 3 | By employing a seasonal worker who is doing the same work at the same time and location as a migrant worker. Regardless of weeks of employment or wage criteria. |
Note: Section 8 refers to the old Act before recodification. Our system still uses the old reference numbers.
To classify an account liable under section 201.028 or 201.047 using the STA screen:
| Key | ACCT |
| Press | <Enter> |
| The record for the account will display | |
| Key | TYP |
| If the federal identification number, phone number or styling need changes: | |
| Key | FEID |
| PHONE | |
| Line 1 | |
| Line 2 | |
| Line 3 | |
| Line 4 | |
| Line 5 | |
| Line 6 | |
| REG CODE => 2 DOM CODE => 2 AGR CODE => 1 |
|
| Key | SECT=> 8 |
| Key | AGR=> 1,2 or 3 (See liability provisions) |
| SUBJ DT (use first employment date for Category 2 and 3) | |
| 1ST TX WG | |
| 1ST CHG | |
| If the account was set up on the basis of a phone call initiated by an Employer's Quarterly Report, then send an FL-160 letter. | |
| Key | FORM LETTER => 160 |
| QTR (Format is quarter and year, i.e. 108 for the 1st qtr of 2008. 108 will insert the date March 31, 2008 into the FL-160 letter.) | |
| Key | RPTS YY |
| Press <Enter> to verify the 1st chargeable quarter. | |
| Press <PF5> to add the record. | |
| Note: Pressing <PF5> before pressing <Enter> will add the record without verifying the first chargeable quarter. | |
