BILL NUMBER: S9082
SPONSOR: HINCHEY
 
TITLE OF BILL:
An act to amend the tax law, in relation to eligibility for the farm
employer overtime tax credit
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to clarify the eligibility require-
ment for the farmworker overtime tax credit.
 
SUMMARY OF PROVISIONS:
Section 1: Amends the tax law to clarify eligibility for the farm
employer overtime credit to include farm employers who choose to
dispense wages through a professional employer organization.
Section 2: Clarifies eligibility for the overtime tax credit by amending
the definition of farm laborer.
 
JUSTIFICATION:
A strong agricultural industry is vital for New York. In order to help
farmers cover overtime expenses for farm workers, the farmworker over-
time credit was created to help manage additional expenses.
While this credit is greatly needed, the language of the law inadvert-
ently prohibits certain farms from being eligible. A farmer with multi-
ple operations, may establish a payroll or management entity to handle
payroll and other administrative functions for their operations under
one roof. These payroll entities contract with farm entities to adminis-
ter payroll and pay workers. Since the payroll entity is paying the
workers, instead of the farm operation, these farms are not eligible for
the farm employer overtime credit. This is due to the way the law was
initially drafted and passed. This bill will allow farms who use a
management or payroll entity, to receive the credit under their business
structure, as was the intention of the original law.
 
PRIOR LEGISLATIVE HISTORY:
This is new legislation.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
This legislation will have no fiscal implications as it was always
intended that all farms would be eligible to participate in the farm-
worker overtime tax credit program.
 
EFFECTIVE DATE:
This act shall take effect immediately.