Cash wages should make up the majority of an employee's compensation. They are taxable income to the employee and a tax deductible business expense to the employer. Cash wages are subject to social security taxes for the employer and the employee and to income taxes for the employee. Vacation pay is the amount employers pay their employees while the employees are on vacation. It rewards them for time worked throughout the year and helps equalize them with nonagricultural workers.
Vacation pay is considered regular wages for taxation purposes.
Overtime pay is not generally required under current agricultural labor laws. However, it may be a way to reward employees for working more hours than would normally be required during a week. Overtime pay, the per hour increase, and minimum number of required hours before overtime pay begins are left up to the employer's discretion in most agricultural situations. Bonuses are not required under current agricultural labor laws. They can be used to reward employees for their contributions to a successful year, harvest, or other time period.