SSA Ruling 95-3P, published August 7, 1995, changes the way certain transactions involving noncash
transfers for agricultural labor are treated by SSA for wage purposes. Prior to the
ruling, noncash transfers were excluded from wages by SSA. Effective August 7, 1995,
certain noncash transfers are wages under Section 209(a) of the Act. This noncash remuneration, generally referred to as in-kind payments,
includes lodging, food, clothing, agricultural or horticultural commodities such as
livestock, grain and 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 is his/her share of the net proceeds before reduction for the amount owed.
REFERENCES: Section 209(a)(7)(B) of the Act; 20 CFR 404.1055.