Page 28 - CFAN_Jun2014

CALCULATING

YOUR SELF-
EMPLOYMENT TAX

continued from page 26
OPERATING YOUR OWN BUSINESS

oten means that your income tax return is more
shortened the “efective marketing season. When Growers also experienced problems with complex than someone who is employed by an
you look at the whole state, you’re going to see anthracnose, a fungal disease. “We all got hit
outside company. Typically, employment taxes are
weather is the predominant factor this year.”
with it,” Patterson says. “It makes the cull rates withheld from an employee's pay by an employer.
UF varieties are at the heart of Florida’s higher.” Although fungus is virtually everywhere,
However, owners of farms, ranches or groves that
blueberry industry. he three new varieties it typically has not been a problem. “We saw it one are treated as a partnership or reported on Form

have been in trials in multiple locations, but Dr. time 10 or 15 years ago,” says Patterson, who has 1040 are oten subject to self-employment taxes.
Olmstead points out that they have not yet been been in the business for 30 years.
When operating as a partnership or sole proprietor

cleared for public disclosure. hey were tested Some growers who tried to rush the crop with these taxes are remitted in the same manner as the
between Gainesville and Arcadia, and are deemed hydrogen cyanamide sufered burn. “It burns a lot owner's income taxes, and are oten included with

suitable for south of Interstate 4.
of your lower buds of,” Braswell says.
quarterly estimated taxes, which are due April 15,
“hey went through trial in this year—with the While some growers experienced labor June 15, September 15, and January 15.

warm fall and winter and then wet spring—and shortages because domestic workers couldn’t One way to determine your self-employment
outperformed just about everything out there,” wait for the crop, Dole Berry Company in Haines tax is to use the Regular Method, for which you will

he says. he fruit is irm, not mushy. “One of the City kept picking because of the federal H-2A multiply your individual earnings by 92.35 percent
to determine your net earnings, then apply the
three is a little more tart early in the season. Other worker program. “he labor was there,” reports
than that they all have a good blueberry lavor,” Dr. Jerry Mixon, director of farming production for FICA tax rate. he current FICA tax rate is 15.3
percent, which consists of a 2.9 percent Medicare
Olmstead explains.
Dole’s southeast division. “In the end, it was more
expensive.” Dole, which has 300 acres in Florida, tax combined with a 12.4 percent Social Security
BLUE FACTORS: FUNGAL DISEASE tax.
AND LABOR
14 of them organic, is planning to use the worker
program again next year.
If your farm or ranch is considered to have a
In addition to the weather, in Lake County small income (gross income below $6,960 and net
Although the year was “full of challenges,”
there were hit and miss problems with birds, Mixon continues to be “cautiously optimistic” farm proit under $5,024), using the Farm Optional
reports Gary England, a multi-county fruit crop Method may signiicantly reduce or even eliminate
about the blueberry industry. “he silver lining to
UF/IFAS extension agent. “Right now we’re self-employment taxes. Under this method, your
anticipating el niño: Wetter, cooler conditions it,” he points out, “is this is the irst time in a lot of
net income is equal to two-thirds of your gross
years that [volume] has been a problem.”
ag
next winter,” he cautions.
farm income.
here are some instances in which you will not

apply FICA to your earned income. he excess
over $113,700 is only subject to the Medicare tax,

and you are exempt from self-employment taxes if
your annual net income is less than $400.

Depending on the complexity of your income,
there are additional methods you can use to

calculate your self-employment tax
liability and your tax advisor can
December’s
assist you in determining the
temperatures
method that is best for you.

averaged
68.5 degrees,
ith
making it the
warmest since
1890
, when they
keeping
started
records.

by STEVEN E. CRISMAN

BIO: Steven Crisman is the managing partner of Cross,
Fernandez & Riley, LLP’s (C/F/R) Winter Haven oice and
leads their Agriculture Practice Group. He primarily serves
the agriculture, manufacturing, warehousing, and distribu-
tion industries. He has speciic experience with citrus grow-
ers, cattle ranchers, citrus and other horticultural nurseries,
citrus harvesters and other support industries as well as wa-
termelon, blueberry and other growers. In addition, Steve
provides comprehensive tax and estate planning, attestation
and business succession planning services.

28 | CFAN
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