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    #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.
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    #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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      #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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