Farm Employer Overtime Credit Advance

Farms that used a Professional Employer Organization (PEO) for payroll services that included eligible overtime between January 1, 2024 – December 31, 2025 are eligible to receive a one-time “catch up” credit. The entirety of this 2024 – 2025 “catch up” credit will be taken on the farm’s tax return that includes December 31, 2025.

In order to receive this credit, eligible farms will need to obtain a certificate from AGM. The application period to apply for a certificate is January 1, 2026 – February 1, 2026.

After this application period, there will NOT be another opportunity to receive a certificate to claim this credit for eligible overtime paid in calendar year 2024 or 2025. Farms are not able to amend a prior year return to claim the farm employer overtime credit.

View additional details regarding the application process for farms that used a PEO in 2024 – 2025.

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, 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.

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:  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 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 4: 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, 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 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.

Note: Due to recent legislative changes to the Farm Employer Overtime Credit, certain program requirements and application procedures are being adjusted. Please check back for updates.