New York Farm Workforce Retention Credit
If you own a farm in New York, you could be eligible for a farm workforce retention credit. This credit allows you to receive a tax refund if you pay your employees more than the Fair Labor Standards Act’s minimum wage. You will also be able to claim your overtime payments. In order to apply for this credit, you will need to complete forms and submit them to the New York Department of Taxation and Finance (NYDTF).
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Overtime threshold to be lowered to 40 hours by 2032
Farm workers would have a 40-hour work week by 2032 under new rules proposed by the New York State Department of Labor. The overtime threshold for farm laborers currently is 60 hours. It will be lowered to 40 hours by 2032 and a new tax credit will be created for farmers to help offset the additional costs.
This new tax credit is part of a package of new refundable credits that were approved by Governor Andrew Cuomo to encourage automation and a more efficient farm workforce. Under this credit, an employer could earn an 118% refundable tax credit for every hour of paid overtime. The tax credit is expected to cost New York $184 million from 2024 to 2027.
The farm industry has struggled to recruit and retain skilled workers. In addition to competition from other states, the industry has also experienced challenges from weather conditions. Some farmers have also relied on foreign workers. Many farmers are worried that foreign workers will be unable to continue working in the U.S. If the overtime threshold is lowered, some foreign workers may look for jobs elsewhere.
The New York State Department of Labor will have 45 days to consider the recommendations from the Farm Laborers Wage Board. It will then begin a rulemaking process for new overtime rules.
According to the Department of Labor, the Farm Laborers Wage Board is composed of a former CEO of Buffalo’s Urban League, Brenda McDuffie, and other labor and social justice advocates. It will hold hearings and present recommendations to the labor commissioner.
Agriculture groups have cited competition with other states that do not have similar wage regulations. They say the state’s move is unfair, and a Cornell study has predicted dire results.
Workers and social justice advocates have testified before the Farm Laborers Wage Board. During the board’s public hearings, only a handful of farmers took the opportunity to speak.
The New York Farm Laborers Wage Board has scheduled three online hearings in January. Farm laborers and labor and social justice advocates are expected to attend the hearings. However, many have complained that the ability to participate in the hearings has been limited.
Tax credit refundable for farm owners for overtime
A new tax credit that may be refundable for farm owners and operators has been introduced by New York state legislators. The credit is designed to cover the cost of extra time spent by farm workers. It is a measure of New York’s determination to soften the blow to agricultural employers as they make the transition to a 40 hour work week.
While no official numbers are available, a study conducted by Farm Credit East found that the new credit could save as many as $129 million in annual costs. It should be noted that the credit is not designed to be a one-time event, and will be extended until 2025.
The Erie County Democrat running for governor of New York has a nifty refundable tax credit that will slash his taxes by at least $200. He is not alone, as other states such as Hawaii and Oregon have similar programs.
This refundable credit is not a one-time event, but rather a yearly influx that will increase to $184 million by 2024. The credit is not a cash cow, but instead provides farmers with the best of both worlds: a tax deduction for their overtime expenses and a tax credit for the employer. However, the tax credit is not a complete solution to the problem of paying for overtime.
Notably, the cheapest credit will only cover overtime payments made in the first seven months of the year. In addition, the credit is not reimbursable for overtime above 60 hours of work. Some farmers say that the credit is worth it, but others think it is a money-losing proposition.
While the refundable tax credit is a great idea, the best part of it is that the nifty new measure is only applicable to a limited number of farmers. As such, it is not likely to spawn a large industry or change the dynamics of the farming community as a whole.
According to the New York Farm Bureau, the new refundable tax credit will not be phased out anytime soon. Although, it will be phased out in the future.
Forms to complete
If you are a farmer in New York State, you may want to claim a tax credit through the Farm Workforce Retention Credit program. The credit is refundable and allows eligible farmers to claim up to $1,200 per eligible employee in the year. This tax credit is offered in the form of a check that can be deposited into a bank account.
The Farm Workforce Retention Credit is available for farmers with federal gross income from farming. To qualify, the farm must be an eligible employer (e.g. a corporation, LLC, or sole proprietorship) and the farm must have an eligible employee. An eligible employee is an individual who is employed by the farm for at least five hundred hours during the taxable year. General executive officers of the farm are not eligible.
The New York state Department of Taxation and Finance will help farmers with the process of claiming a credit. It provides a printable version of Form CT-647 and other documents. They also have a free Farmer’s Tax Advantages Kit that offers resources and guidance for farmers.
In addition to the Farm Workforce Retention Credit, there are other business incentives that are available to farmers. These incentives can include advance payments of tax credits for overtime premiums paid during the period from January 1st to July 31st. There are additional details regarding this credit that will need to be worked out. Generally, a farmer who qualifies for the credit must receive a certificate from the NYS Ag and Markets before it can be processed.
Farmers in the state of New York are eligible to claim the credit if they have a taxable federal gross income from farming in that year. Farmers can claim up to $600 in 2021 and $400 in 2020. A taxpayer who wishes to claim a tax credit under section 232 must include all eligible farm employees as part of the total number of eligible farm employees. However, the credit is not available if the farm is qualified for another tax credit under chapter.
Overtime premium is reimbursable through the tax credit
The Farm Workforce Retention Tax Credit is a good way to offset the cost of overtime pay for your agricultural workers. Although the tax credit is not a panacea, it does provide an incentive for employers to keep their farm workers in the fold.
The tax credit does have some drawbacks. First, there is the time lag between the payment and receipt of the credit. Second, the credit is only available to workers on qualified agricultural property. And finally, the tax credit can only be claimed after a claim has been filed with the state’s Department of Agriculture and Markets.
Those who own or operate a farm will need to take some time to study the new rule before they can reap its rewards. If they have not done so already, they may want to make sure their payroll record systems are up to the challenge. They may also wish to share administratively necessary but not personally identifiable information with the Department of Revenue. It is not uncommon for a farmer to have more than one job, so a streamlined process will go a long way toward ensuring a smoother tax credit experience.
As far as the actual credit goes, the credit is designed to be paid in advance of the actual payment. This means that farm owners can take advantage of the credit from January 1 to July 31 of each year. On top of that, the credit is not intended to be a permanent fixture in the budget. But the law does not preclude future lawmakers from taking the credit away.
In terms of actual costs, the credit is a small price to pay for the benefits it brings to the state’s economy. However, it may not be a small cost to the taxpayer. When the tax credits are combined with the state’s other agriculture programs, taxpayers could be on the hook for millions of dollars per year. So, if you’re not a farmer, how can you be sure that you’re getting the most out of your taxes?
There is no guarantee that the tax credits will be around for long, but they certainly won’t go away.
Statute of limitations
If you are a farmer, you may qualify for the Employee Retention Credit. The credit is available to certain businesses, but you must meet certain requirements. Before you can claim the credit, you must first determine how much money your employees are earning on leave. You must also submit a Form 941, Employer’s Quarterly Federal Tax Return, to claim it. This form must be filed with the IRS by the end of the calendar year. If you don’t file your return by the end of the year, you will lose the opportunity to claim the credit.
The Employee Retention Credit is a federal employment tax credit. It can be claimed on your employer’s quarterly federal tax returns and your annual federal tax returns. If you are not eligible for the credit, you can amend your Form 941 by filing Form 941-X. However, there is a statute of limitations on claims for this credit. Currently, the statute of limitations is three years. If you are not entitled to the credit in a year, you can file an amended Form 941 before the end of the year to receive credit for the previous year.
You can file an amended Form 943 if you have agricultural employees. Similarly, you can claim a credit on your Form 944, Employer’s Annual Federal Tax Return, if you have an agriculture-related business. In order to claim the credit, you must report the number of qualified farm employees and the wages they earn on their Forms 944 and 943.