The following commentary does not necessarily reflect the views of AgWeb or Farm Journal Media. The opinions expressed below are the author's own.
Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
Congress late last week passed a new bill (and President Obama has already indicated he will sign it) to extend the 2% payroll tax cut from February 29, 2012 till the end of 2012. This means that your employee's FICA contribution will remain at 4.2% for the rest of the year instead of the schedule return to the normal 6.2% rate.
For self-employed farmers, your total FICA contribution will be 10.4% instead of the normal 12.4%. As normal, it appears that election year politics is in play here and we would not expect this to continue into 2013.
I have seen several taxpayers calculate their employee's paychecks for 2011 incorrectly and hope most of our farmers have already updated their payroll system to deduct and pay the proper amount.
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