In our earlier articles on the payment of wages in kind, we noted that payment of wages in kind rather than in cash to agricultural labor has not been subject to FICA or FUTA tax for several years. Moreover, payments to agricultural labor are exempt from income tax withholding except as the payments constitute wages. Wages paid, in any medium other than cash for agricultural labor, are exempt from the term wages. Further, payments in kind to agricultural laborers are not considered wages for purposes of determining the amount of earnings in retirement.
Harl, Neil E.
"New Rules Coming on Payment of Wages In-Kind,"
Agricultural Law Digest: Vol. 5
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol5/iss11/1