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FAFM EMPLOYERS' SOCIAL SECURITY 



Farmers who employ hired labor are required to deduct Social Security tax 

 from their employees' wages if either of two tests apply. Payment records are 

 necessary as well. Taxes are to be deducted on employees' wages if pay is on a 

 piecework basis whenever the total wage paid to the employee during the year 

 amounts to $150 _or when the employee has worked on 20 different days during the 

 year, regardless of the amount of pay. The rate is 2% percent since January 1959, 

 The employer must pay 2^ percent in addition. 



Whenever the total amount of tax, the employer's 2\ percent and the employee's 

 2% percent, amounts to at least $100 after any month or series of months, a deposit 

 of this amount must be made in a bank authorized to accept deposits for the 

 Federal Reserve Bank. You will need to write the District Director of Internal 

 Revenue, 174 Ipswich Street, Boston, Massachusetts, for a Federal Depository 

 Receipts form #450. 



If you do not have an employer's identification number you will need to get 

 one by applying for it on Form SS-4 which you can get from the District Director 

 of Internal Revenue or from the nearest Social Security office. 



Your son or daughter under 21, and your wife or husband, father or mother 

 are not employees under Social Security, although you may pay them wages for 

 work they do for you and dedvct these wages as a farm expense. 



You will have $100 of tax liability whenever the total cash wages of employ- 

 ees amounts to $2000 during the year, 



FARMERS' SOCIAL SECURITY 



If you have been paying Social Security tax on your self -employment earnings 

 from farming in the years since 1955 and you are 65 years old or you will be 65 

 years old during 1959 or 1960, you should visit your nearest Social Security office. 



Social Security representatives will be glad to discuss your situation with 

 you. Several Instances where farmers who were ready to request retirement in 

 the last few months have shown how important this is. In these cases farmers 

 have found that their retirement benefits have been less than they might have 

 been because of misunderstanding. Some benefits have been lost due to delay 

 in making this visit. 



You will need copies of your income tax returns for the years since 1955, 

 as well as certain other information such as evidence of age and the like. 



EMPLOYERS' PAYROLL RECORDS FOR SOCIAL SECURITY 



Payroll records for Social Security tax can be in any form provided they 

 contain the following information: name . address . Social Security ninnber of 

 the employee, days worked , pay rate , date wn^,ea paid and tax deducted . 



