The deadline is fast approaching for eligible farm employers to apply to the New York State Ag Department for a refundable farm employer overtime tax credit.
The Farm Employer Overtime Credit is a refundable tax credit available for eligible farm employers who paid overtime wages between January 1, 2024, and July 31, 2024, based on the gradual phase-in of the overtime threshold in New York State. Farm employers who have registered in the online portal at taxcredit.agriculture.ny.gov, entered eligible employee overtime information, and signed an attestation that they meet eligibility requirements, may submit their application to the Department for a certificate of advance payment of eligible overtime paid between January 1 and July 31, 2024.
Applications for a certificate of advance payment must be submitted to the Department by September 30, 2024. After eligibility review, the Department will issue a certificate to each approved farm employer. With a certificate of advance payment, the approved farm employer’s owner(s), partners, or shareholders can request their share of the advance payment from the Department of Taxation and Finance (DTF). Each of the farm’s owners, partners, or shareholders who want to receive their portion of the credit advance must apply individually. This request must be made no later than November 1, using the online services account at DTF’s website.
Farmers may apply for this refundable credit if they (or their business):
- are an eligible farmer; and
- employ eligible farm employees who were paid eligible overtime.
Receiving the advance credit payment is not mandatory. Farm employer’s owner(s), partners or shareholders can choose to claim any eligible overtime paid for the entire year (including the January 1 – July 31 period) when they file their final tax return with DTF. Between the advance payment and months claimed on their return, eligible farm employers will receive a full 12 months of the Farm Employer Overtime Credit.
A user guide to assist farmers in the application process for an advance certificate is available at agriculture.ny.gov/user-guide-farm-employer-overtime-credit-advance.
Earlier this year, the State encouraged farmers to prepare to apply for an advance payment by taking the following steps:
- Ensuring that they are registered for a NY.gov ID through My.NY.gov.
- Taking the farm employer eligibility assessment to establish if they (the farm employer) expect to meet the eligible farmer income requirements for their tax filing type at the end of the tax year.
- Discussing the program with their tax and payroll advisors to ensure they kept necessary records during the January 1 – July 31 period this year.
- Registering their farm in the online portal at taxcredit.agriculture.ny.gov.
- Optionally, choosing to delegate authority to a representative (e.g., a tax preparer), who may complete and submit the application on the farm employer’s behalf later in the year.
Additional information and resources are available on the Department’s website here and the DTF website here. Questions may be directed to [email protected] or (518) 457-7076.
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