Farm Employer Overtime Credit Advance

The Farm Employer Overtime Credit is a refundable tax credit available for farm employers, including those using a Professional Employer Organization (PEO), who pay overtime wages, based on the phase-in of an overtime threshold in New York State.

Advance: Farm employers may apply to the New York State Department of Agriculture and Markets (AGM) for a certificate of advance payment for eligible overtime paid between January 1 and July 31 each year.

Year-End: Starting with tax year 2026, farm employers must apply to AGM for a year-end certificate for eligible overtime paid between January 1 and December 31 each year. The year-end certificate is necessary to claim the credit on the employer’s tax return.

Note: Applying for an overtime credit advance is optional. Farm employers may instead choose to claim eligible overtime paid for the entire year as part of the year-end certificate process. Regardless of whether an advance is issued, all farm employers seeking the overtime credit for 2026 must apply for a year-end certificate (covering all of calendar year 2026) by February 1, 2027.

You are entitled to this refundable credit if you or your business:

• qualify/qualifies as an eligible farmer; and
• employ/employs eligible farm employees that you paid eligible overtime; or
• either directly or indirectly, through a Professional Employer Organization (PEO), paid eligible overtime wages to eligible farm employees.

Eligible overtime is the total number of hours an eligible farm employee works in a week that exceeds the overtime work threshold, not including hours in excess of 60 hours in a calendar week. The overtime work thresholds are listed below.

Prepare to Apply

Please ensure you have the following information gathered before you begin your application for a Farm Employer Overtime Credit Certificate of Advance Payment.

• If you don't already have a NY.gov ID through My.NY.gov, you must register for one. My.NY.gov is an online platform that enables businesses and individuals to access services through participating agencies, such as the New York State Department of Tax and Finance.
• If you have a NY.gov ID, ensure that you have your username and password and are able to log in. If you have forgotten your username and password, go to My.NY.gov and click on 'Forgot Username?' or 'Forgot Password?' to proceed.
• Download the Employee Payroll Information Template to organize your payroll data prior to applying for your certificate. This information can also be manually entered into the online application system.

Apply

After you have gathered the information above, you are ready to start your certificate application. Please note only online applications will be accepted. Follow the steps below. 

Step 1: Visit the Online Application

Only online applications will be accepted.

View the application

Step 2: Register Your Farm

You will need to provide the farm employer name, point of contact info (name, email, phone number, phone type), taxpayer identification number (Employer Identification Number (EIN), and farm organizational structure (e.g. sole proprietor, corporation, etc.). If the farm has multiple owners, partners, members, or shareholders, you will need to provide the social security number (SSN) or taxpayer identification number (TPIN) for each, along with their percentage of ownership.

Once this step is complete, the farm employer may choose to delegate authority to a representative (e.g. a tax preparer) to complete and submit the application on the farm employer’s behalf. If the farm employer chooses to assign a representative for this purpose, the name and email of the representative must be provided during the registration process.

Farm employers that use a Professional Employer Organization (PEO) will also need to provide this additional information:

• PEO business name;
• first and last name of the PEO primary contact;
• phone number and email address for the PEO primary contact;
• documentation that verifies the relationship/organizational structure between the farm and PEO. (e.g., contract, service agreement, MOU, etc.) that details the agreed upon services for the time period of eligible overtime expenses being claimed; and
• information regarding the transfer of funds (e.g. bank statements, cancelled checks, etc.) between the farm and PEO for the eligible overtime expenses being claimed, with details of what the transfer of funds is for (e.g. invoices, etc.).

Step 3:  Complete the Certificate Application

The following information is needed to apply for an advance and/or year-end certificate:

• Full name of each employee* you are claiming overtime credit for
• Social security number or taxpayer identification number of each employee
• Pay period start and end dates you are claiming overtime credit for
• Total eligible overtime hours worked for period being claimed for each employee (this can be entered by pay period or in an aggregate amount)
• Each employee’s regular/base rate
• Each employee’s overtime rate
• Farms that use a PEO will also need to provide documentation verifying:
  • Relationship/organizational structure between the farm and PEO. This may include an executed relationship document (e.g., contract, service agreement, MOU, etc.) and contain details regarding the agreed upon services covering the time period of the eligible overtime expenses being claimed.
  • Transfer of funds (e.g., bank statements, cancelled checks, etc.) between the farm and PEO for the eligible overtime expenses being claimed and details of what this transfer of funds is for (e.g., invoices, etc.).

*Note: An eligible farm employee is an individual who meets the definition of a farm laborer under Labor Law § 2, who is employed by a farm employer in New York State. A general executive officer of the farm employer is not an eligible farm employee.

Step 4: Review and Submit the Application

Review all the information provided in your application for a certificate. If it is correct to the best of your knowledge, and you attest to the application requirements, submit the application. After you have submitted your application, you will receive an email confirmation that it was received.

If no advance payment is claimed or authorized for the January - July period, a farm employer may obtain a credit certificate for eligible overtime paid for the entire year when filing their tax return at year-end. Please note, regardless of whether an advance is issued or not, all farm employers who wish to claim the overtime credit on their tax return must apply for a year-end certificate by February 1 each year. Note: This is a new requirement starting for tax year 2026. 

After the Application has been Submitted

After the New York State Department of Agriculture and Markets has reviewed your submitted application, you will receive an email from the Department with a determination of eligibility. Eligible farms will receive an advance payment certificate, attached to the email, that includes the amount of credit and a unique certificate number, as well as the names of owners, partners, members, or shareholders with corresponding credit amounts for each (if applicable).

The farm employer is responsible for sharing the certificate with all owners, partners, members, or shareholders so they can each request their credit advance payment from the New York State Department of Taxation and Finance.

In order to receive the advance payment, each owner, partner, member, or shareholder must apply to New York State Department of Taxation and Finance Online Services.

Credit advance payment requests must be made to the Department of Taxation and Finance no later than November 1.

Payment will be issued by the Department of Taxation and Finance once information is verified.

In order to receive the year-end credit, the farm must obtain a year-end certificate from the Department of Agriculture and Markets for eligible overtime paid between January 1 and December 31. The certificate is needed to complete New York State Department of Taxation and Finance Form CT-661 or IT-661 when filing the farm’s tax return.