{"id":45331,"date":"2025-09-26T02:49:22","date_gmt":"2025-09-26T06:49:22","guid":{"rendered":"https:\/\/smallfarms.cornell.edu\/guide\/payroll-and-worker-documentation\/"},"modified":"2026-05-18T15:55:09","modified_gmt":"2026-05-18T19:55:09","slug":"payroll-and-worker-documentation","status":"publish","type":"resources","link":"https:\/\/smallfarms.cornell.edu\/es\/recursos\/guide-to-farming\/payroll-and-worker-documentation\/","title":{"rendered":"Payroll and Worker Documentation"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Fact Sheet Overview<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Getting an Employee Identification Number (EIN)<\/li>\n\n\n\n<li><a href=\"https:\/\/smallfarms.cornell.edu\/resources\/guide-to-farming\/payroll-and-worker-documentation\/#pp-toc-5fb445d25ccb1-anchor-0\">Employee or Independent Contractor<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/smallfarms.cornell.edu\/resources\/guide-to-farming\/payroll-and-worker-documentation\/#pp-toc-5fb445d25ccb1-anchor-1\">Hiring Forms: I-9<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/smallfarms.cornell.edu\/resources\/guide-to-farming\/payroll-and-worker-documentation\/#pp-toc-5fb445d25ccb1-anchor-2\">Payroll Service<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/smallfarms.cornell.edu\/resources\/guide-to-farming\/payroll-and-worker-documentation\/#pp-toc-5fb445d25ccb1-anchor-3\">Which Forms to File<\/a><\/li>\n<\/ul>\n\n\n\n<h2 id=\"getting-an-employee-identification-number-ein\" class=\"wp-block-heading\"><strong>Getting an Employee Identification Number (EIN)<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The first step in hiring employees for your farm is to file an <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/fss4.pdf\" target=\"_blank\" rel=\"noopener\">IRS Form SS4<\/a> to get an EIN. After receiving an EIN, businesses in New York State must register with the <a href=\"https:\/\/www.businessexpress.ny.gov\/app\/answers\/cms\/a_id\/3033\" target=\"_blank\" rel=\"noopener\">NYS Department of Labor.<\/a> As an employer, you will withhold federal and state income tax, social security tax, and workers compensation tax.<\/p>\n\n\n\n<h2 id=\"employee-or-independent-contractor\" class=\"wp-block-heading\"><strong>Employee or Independent Contractor<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Hiring labor in the State of New York imposes high liabilities and paperwork burdens on the employer.&nbsp; Because of this, employers may be tempted to classify their workers as independent contractors, but a person is only an independent contractor when he or she is legitimately an individual in business for himself and for hire to the general public.&nbsp; If there is any ambiguity on the status of the individual, courts generally interpret the individual as being an employee. If you would like a decision on if the individual is an employee or an independent contractor, file the following form with the IRS:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/fss8.pdf\" target=\"_blank\" rel=\"noopener\"><strong>IRS Form SS-8<\/strong><\/a><strong>: Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding<\/strong><\/p>\n\n\n\n<h2 id=\"hiring-forms-i9\" class=\"wp-block-heading\"><strong>Hiring Forms: <\/strong><a href=\"http:\/\/www.uscis.gov\/i-9\" target=\"_blank\" rel=\"noopener\"><strong>I-9<\/strong><\/a><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Employers must keep an I-9 form from the US Citizenship and Immigration Service on file for all employees. The I-9 requires copies of documentation (a driver\u2019s license and social security card for most), and the employer should closely follow the exact instructions on the form.<\/p>\n\n\n\n<h2 id=\"payroll-service\" class=\"wp-block-heading\"><strong>Payroll Service<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Given the complexities and liabilities of properly administering payroll, it is recommended that small employers hire a payroll service. This can assist the farmer with deadlines, proper handling of accounts, and avoid the need for the farmer to stay current with changing procedures.<\/p>\n\n\n\n<h3 id=\"reference-publications\" class=\"wp-block-heading\"><strong>Reference Publications:<\/strong><\/h3>\n\n\n\n<table id=\"tablepress-17\" class=\"tablepress tablepress-id-17\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\">IRS Publication 51, Agricultural Employers Tax Guide<\/td><td class=\"column-2\">Reference publication explaining federal regulations and contains a calendar of when forms need to be filed throughout the year.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/p51.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/p51.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">NYS Publication 50, Employers Guide<br \/>\nto Unemployment Insurance, Wage Reporting, and Withholding Tax<\/td><td class=\"column-2\">State Reference Publication<\/td><td class=\"column-3\"><a href=\"http:\/\/www.tax.ny.gov\/pdf\/publications\/withholding\/nys50.pdf\" target=\"_blank\" rel=\"noopener\">https:\/\/on.ny.gov\/2Mmlyt4<\/a><\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Agricultural Employer\u2019s Checklist 2014<\/td><td class=\"column-2\">Cornell Cooperative Extension publication that goes through the employee hiring process step by step<\/td><td class=\"column-3\"><a href=\"http:\/\/blogs.cornell.edu\/smallfarms\/files\/2014\/08\/2014-Employer-Checklist-2dazazm.pdf\" target=\"_blank\" rel=\"noopener\">http:\/\/bit.ly\/CSFPemployerchecklist<\/a><\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">Multiple available from Farm Commons<\/td><td class=\"column-2\">Farm Commons has several publications that help farmers with both the decision-making process and logistics of hiring employees<\/td><td class=\"column-3\"><a href=\"http:\/\/www.farmcommons.org\" target=\"_blank\" rel=\"noopener\">www.farmcommons.org<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 id=\"which-forms-to-file\" class=\"wp-block-heading\"><strong>Which Forms to File<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Which specific forms your farm is required to file depends upon the farm size and the specifics of your operation. We recommend that you seek the advice of a payroll specialist and read the reference publications listed above to determine which forms are required for your operation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you decide to do payroll on your own, a list of forms you should become familiar with follows. This is by no means a comprehensive list of the forms your operation needs to be compliant.<\/p>\n\n\n\n<h3 id=\"payroll-forms\" class=\"wp-block-heading\"><strong>Payroll Forms<\/strong><\/h3>\n\n\n\n<table id=\"tablepress-18\" class=\"tablepress tablepress-id-18\">\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-1\">\n\t<td class=\"column-1\">Form SS-4 Application for Employer Identification Number (EIN)<\/td><td class=\"column-2\">Your business must obtain an EIN if you have employees or will file for other taxes such as excise taxes.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/fss4.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/fss4.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Form NYS-100 New York State Employer Registration for Unemployment Insurance, Withholding, and Wage Reporting<\/td><td class=\"column-2\">To be filed when you become an employer. You will be assigned an Employer Registration Number, which is separate from your federal EIN.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.labor.ny.gov\/formsdocs\/ui\/nys100.pdf\" target=\"_blank\" rel=\"noopener\">http:\/\/www.labor.ny.gov\/formsdocs\/ui\/nys100.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">W-2<\/td><td class=\"column-2\">Form stating wages and withholdings made for an employee throughout the year. A copy is sent to the employee, the Social Security Administration, the IRS, the NYS Department of Taxation, and to county\/local governments that have an income tax such as New York City.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/fw2.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/fw2.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">W-3<\/td><td class=\"column-2\">Similar to the W-2, filed with the Social Security Administration.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/fw3.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/fw3.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">W-4<\/td><td class=\"column-2\">Form filled out when an employee starts so that their employer knows to withhold the correct amount of taxes.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/fw4.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/fw4.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">Form NYS-45 Quarterly Combined Withholding, Wage Reporting,<br \/>\nand Unemployment Insurance Return<\/td><td class=\"column-2\">State form to be filed quarterly.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.tax.ny.gov\/pdf\/current_forms\/wt\/nys45_fill_in.pdf\" target=\"_blank\" rel=\"noopener\">https:\/\/on.ny.gov\/36SXyVx<\/a><\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">Form 940 Employer\u2019s Annual Federal Unemployment (FUTA) Tax Return<\/td><td class=\"column-2\">Required if you had cash wages greater than $20,000 or employed 10 or more workers throughout the day for 20 or more weeks in the year.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f940.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/f940.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td class=\"column-1\">Form 941 Employers Quarterly Federal Tax Return<\/td><td class=\"column-2\">Required to report wages paid, tips received, federal taxes withheld, Social Security and Medicare withholding, and advance EIC payments for non-farm workers.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f941.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/f941.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-9\">\n\t<td class=\"column-1\">Form 943 Employers Annual Federal Tax Return for Agricultural Employees<\/td><td class=\"column-2\">Form 941 for farms.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f943x.pdf\" target=\"_blank\" rel=\"noopener\">http:\/\/www.irs.gov\/pub\/irs-pdf\/f943x.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-10\">\n\t<td class=\"column-1\">Form 1099<\/td><td class=\"column-2\">Must be furnished to people who received $600 or more in non-employee compensation throughout the year.<\/td><td class=\"column-3\">Instructions:<br \/>\n<a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/i1099msc.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/i1099msc.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-11\">\n\t<td class=\"column-1\">Form 945 Annual Return of Withheld Federal Income Tax<\/td><td class=\"column-2\">Used to report income tax withheld for non-payroll wages.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f945x.pdf\" target=\"_blank\" rel=\"noopener\">http:\/\/www.irs.gov\/pub\/irs-pdf\/f945x.pdf<\/a><\/td>\n<\/tr>\n<tr class=\"row-12\">\n\t<td class=\"column-1\">Form 4029 Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefit<\/td><td class=\"column-2\">Certain members of religious organizations (generally<br \/>\nAmish or Mennonite in agriculture) may file this form to exempt themselves (and their employer) from Social Security and Medicare taxes.<\/td><td class=\"column-3\"><a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f4029.pdf\" target=\"_blank\" rel=\"noopener\">www.irs.gov\/pub\/irs-pdf\/f4029.pdf<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Fact Sheet Overview Getting an Employee Identification Number (EIN) The first step in hiring employees for your farm is to file an IRS Form SS4 to get an EIN. After [&hellip;]<\/p>\n","protected":false},"author":380,"featured_media":0,"parent":45370,"menu_order":44,"comment_status":"open","ping_status":"open","template":"guide","meta":{"_acf_changed":false,"_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"_tribe_blocks_recurrence_rules":"","_tribe_blocks_recurrence_description":"","_tribe_blocks_recurrence_exclusions":"","_ecp_custom_2":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[],"issue":[],"resource_type":[16749],"featured":[],"project_collection":[],"class_list":["post-45331","resources","type-resources","status-publish","hentry","resource_type-guide"],"mb":[],"acf":[],"jetpack_sharing_enabled":true,"mfb_rest_fields":["title","jetpack_sharing_enabled"],"_links":{"self":[{"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/resources\/45331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/resources"}],"about":[{"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/types\/resources"}],"author":[{"embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/users\/380"}],"replies":[{"embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/comments?post=45331"}],"version-history":[{"count":3,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/resources\/45331\/revisions"}],"predecessor-version":[{"id":57289,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/resources\/45331\/revisions\/57289"}],"up":[{"embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/resources\/45370"}],"wp:attachment":[{"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/media?parent=45331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/categories?post=45331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/tags?post=45331"},{"taxonomy":"issue","embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/issue?post=45331"},{"taxonomy":"resource_type","embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/resource_type?post=45331"},{"taxonomy":"featured","embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/featured?post=45331"},{"taxonomy":"project_collection","embeddable":true,"href":"https:\/\/smallfarms.cornell.edu\/es\/wp-json\/wp\/v2\/project_collection?post=45331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}