Farm Employer Overtime Credit Advance

The Farm Employer Overtime Credit is a refundable tax credit available for farm employers who pay overtime wages after January 1, 2024, based on the phase-in of an overtime threshold in New York State.

Farm employers may apply to the New York State Department of Agriculture and Markets for an advance payment of the eligible overtime paid between January 1 and July 31 each year.

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

• is an eligible farmer; and
• employs eligible farm employees that you paid eligible overtime.

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

Preparing to Apply:

Please ensure you have the following information gathered before you begin your application for a Farm Employer Overtime Tax 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.
• Take the farm employer eligibility assessment to establish if you (the farm employer) expect to meet the eligible farmer income requirements for your tax filing type at the end of the tax year.

Apply:

After you have gathered the information above, you are ready to start your certificate application. Follow the steps below:

Step 1: Link to the application will be live in early 2024.

Only on-line applications will be accepted.

Step 2: Provide Details on Farm Structure/Ownership

Provide the farm employer name, taxpayer identification number, 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.

Step 3: Confirm Eligibility

You must review the eligible farmers income test from the New York State Department of Tax and Finance website for your tax filing type and confirm that you expect to meet the requirements at the end of the tax year. If the farm employer does not meet the eligibility requirements at the end of the year, the individual farm owners will be liable for the repayment of any advance funds on their year-end tax return.

Step 4:  Provide Eligible Farm Employee Information

For each eligible farm employee who has worked qualifying overtime, enter the following information:

• the employee’s full name and social security number or taxpayer identification number,
• the primary zip code where the work was completed,
• the pay period start and end date(s) for any pay period(s) during which eligible overtime was completed, 
• the base rate of pay and overtime rate of pay, and
• the number of regular hours and eligible overtime hours worked by that employee.

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 5:  Upload Supporting Payroll Information

Upload payroll documentation to support all employee information that was entered into the system during Step 4.

Note: Taxpayers must prove entitlement to tax credits. During the course of an audit, you may be required to provide documentation to substantiate entitlement based on the specific facts of your tax credit claim. See farm employer overtime credit recordkeeping for more information on the recordkeeping requirements for this credit.

Step 6: Review and Submit the Application

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

Note:  If no advance payment is claimed or authorized for the January - July period, a farm employer may claim eligible overtime paid for the entire year when filing their tax return at year-end.

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.

NYS Department of Taxation and Finance Farm Employer Overtime Credit Webpage