Congressman Welch has proposed language that will increase the quarterly wage cap that exempts ag employers from paying into the unemployment fund from $20,000 to $40,000 (with a built-in COLA).
I have been asked to organize a conference call with the Congressman’s aide on the issue for this Friday morning, and I am looking for a few growers willing to participate (for I would guess an hour or so). I am specifically interested in hearing from people who are at, near, or have recently exceeded the cap, and how this legislation might affect you.
In order to most effectively organize this, I need to hear from you (if you are interested in participating) by Thursday (tomorrow) night.
Please contact me directly either by phone (802-897-7031) or email ([log in to unmask]).
Here are a few useful bullets, FYI:
· my back of the envelope calculations indicate that 4 FTE's earning $10/hour puts you near the $20K category.
· the $20K cap has been unchanged since at least 1976.
· my understanding is that once the wage cap has been exceeded in any one calendar quarter, employers are liable for all quarters in that year, as well as into the future (at least for sole prop's and partnerships).
· if you need more particulars about the exemption, check out Circular A from the IRS
Golden Russet Farm