Understanding H-2A Workers
Explore H-2A workers' tax implications and compliance needs for U.S. agricultural employers.
H-2A workers are supported and can be paid through the Check platform.
The H-2A visa program enables U.S. agricultural employers to hire temporary foreign workers for seasonal or short-term roles, such as planting, cultivating, or harvesting crops, when domestic labor is insufficient. These workers are critical to addressing labor shortages in farms, nurseries, and orchards, with employment typically tied to specific seasonal cycles or lasting up to 10 months in temporary cases.
Taxation for H-2A Workers
H-2A workers are classified as non-resident aliens for tax purposes unless they meet the IRS’s "substantial presence" test (residing in the U.S. for at least 183 days over three years). Key tax considerations include:
- Social Security and Medicare: Employers and workers are exempt from paying these taxes, reducing payroll costs for employers and take-home pay for workers.
- Federal Income Tax: Withholding is optional unless the worker submits a completed IRS Form W-4 to request deductions. Workers may still owe taxes when filing annual returns.
- State Income Tax: Rules vary by state. For example, Texas and Florida impose no state income tax, while others require withholding based on state-specific laws.
- Reporting Requirements: Employers must report wages on Form W-2, even if no taxes are withheld.
Employer Considerations
Compliance is critical: employers must adhere to labor laws. For H-2A workers, understanding tax obligations helps avoid unexpected liabilities, while employers must balance cost savings with strict regulatory adherence. The program remains a vital bridge for U.S. agriculture, though its complexity underscores the need for legal and tax expertise
Last updated on June 6, 2025