SSA Ruling 95-3P, Transactions Involving Noncash Transfers for Agricultural Labor, changed the way certain transactions involving noncash transfers for agricultural
labor are treated by SSA for wage purposes. Prior to the ruling, SSA excluded noncash
transfers from wages. Effective August 7, 1995, certain noncash transfers are wages
under Section 209(a) of the Act. The noncash remuneration now treated as wages and referred to as in-kind
payments, includes lodging, food, clothing, agricultural or horticultural commodities
such as livestock, grain, milk products, and other noncash items.
Some employers provide cash or credit for food, clothing, etc., and later deduct the
amount from the farmworker's share of the net proceeds of the commodity. In this situation,
the farmworker's cash wages for the year are his or her share of the net proceeds
before reduction for the amount owed.
Cash payments are wages if:
the employer paid $2,500 or more for agricultural labor in a year; or
the employer paid less than $2,500 in a year, but the employee was paid $150 or more.
EXCEPTION: The $2,500 a year test does not apply to certain seasonal agricultural workers. For
instructions on Seasonal Agricultural Labor, see RS 01402.025.
Cash payments of $150 or more in a calendar year are wages.
Cash payments of less than $150 are wages if the employee worked for the employer
for 20 or more days during the year and the cash payment was computed on a time basis.
Cash payments of $100 or more in a calendar year by the employer are wages.
Cash payments of $50 or more in any calendar quarter of regular employment are wages.
Prior to 1951, agricultural labor was excluded from coverage.