And the questions go on and on. This article discusses some of the various forms of compensation for farm employees. It is intended for educational purposes only. Appropriate legal and accounting counsel should be sought for individual situations. Tax considerations are based on tax laws in effect as of June 30, 1995.
Most employees receive monetary compensation for their efforts.
Commodities, housing, personal use of business assets, clothing, etc. are all noncash, fringe benefits. Furthermore, the value of noncash compensation to the employee may be greater than the actual cost to the employer. Some forms of compensation benefit the employer as much as the employee. Protective clothing and education may reduce work related accidents when the employee is working with pesticides. Bonuses may keep employees from quitting during critical times.