Commodity Wages

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  • Tami
    Junior Member
    • Jan 2015
    • 6
    #1

    Commodity Wages

    Has anyone heard of commodity wages for a farmer? The prior accountant completed a W-2 and did not calculate social security or medicare. Also, which applicable federal rate must be used when a stockholder loans money to his corporation? Thank you.
    Tags: None
    • Gretel
      Senior Member
      • Jun 2005
      • 4008
      #2
      I'll answer first part. If certain requirements are met no SS taxes need to be paid for these type of wages.

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        • TaxmannEA
          Member
          • Apr 2007
          • 76
          #3
          Payments in commodities are exempt from FICA withholding, so the W-2 would be correct. This is not an uncommon practice by some farmers.

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