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As farmers begin to hire summer help, they should know the rules concerning Social Security coverage for these employees.
Bruce Hundley, manager of the Social Security office in Culpeper, points out that agricultural wages are covered if the employee is paid $150 or more in cash during the year. Earnings are also covered if the employee is paid on a time basis — by the hour, day, week or month — and works 20 or more days during the year.
If the employer withholds Social Security tax from an employee’s wages and then finds that the wages are not covered because neither test is met, the tax withheld must be refunded to
88.8%