NY farm overtime credit portal now open

By Blake Jackson

New York Governor Kathy Hochul has announced the launch of the State's Farm Employer Overtime Credit advance portal, providing a crucial opportunity for farmers to register and prepare for reimbursement. Supported by a $150,000 grant from the U.S. Department of Agriculture Rural Development, the initiative aims to reduce the tax burden on farm businesses while supporting hardworking staff.

The Farm Employer Overtime Credit, a refundable tax credit, is applicable for eligible farm employers paying overtime wages after January 1, 2024. The gradual phase-in of the overtime threshold in New York State is the basis for this credit. Eligible farmers can apply for the refundable credit if they meet specified criteria and employ eligible farm workers who receive overtime pay.

Farm employers are encouraged to take preparatory steps for applying:

• Register for a NY.gov ID through My.NY.gov.
• Complete the farm employer eligibility assessment to determine eligibility based on income requirements.
• Discuss the program with tax and payroll advisors to ensure proper record-keeping during the January 1 – July 31 period.
• Register the farm on the online portal if planning to apply for the advance payment in 2024.
• Optionally, delegate authority to a representative (e.g., a tax preparer) for later application submission.

The initiative also emphasizes the importance of engaging with tax and payroll advisors to ensure compliance and maximize benefits. A user guide is available to assist farmers with preparatory steps.

After July 31, farm employers can submit supporting payroll documentation to the portal and apply to the Department of Agriculture and Markets for a certificate of advance payment for eligible overtime paid between January 1 and July 31. Applications must be submitted by September 30, and after eligibility review, certificates will be issued. With the certificate, approved farmers can request their share of the advance payment from the New York State Department of Tax and Finance by November 1.

Governor Hochul's Farm Employer Overtime Credit aligns with her commitment to supporting farmers in meeting the challenges of rising labor costs. This initiative, along with other proposed investments, reflects her dedication to strengthening New York's agricultural industry, promoting workforce development, and enhancing opportunities for youth leadership and education.

Photo Credit: usda