Payroll From Feedyard to Front Desk
Amarillo employers include feedyards, dairies, farms, plants, carriers, hotels and restaurants. Most withhold federal income tax and pay Social Security, Medicare and unemployment taxes, with no state income tax. Farms follow separate rules. BOMCAS runs payroll for Amarillo employers remotely.
Federal and TWC payroll basics are on the Texas payroll page. Amarillo's farm, plant and driver payroll is covered here.
Farm and Feedyard Workers
On a farm or feedyard, the payroll tax tests count cash wages. Social Security and Medicare start for any hand who earns at least $150 in cash in the year, and for everyone once the operation's cash payroll for the year reaches $2,500. The federal unemployment test is a $20,000 cash payroll in any quarter, or ten workers on at least one day in each of 20 weeks; the Texas test is $6,250 in a quarter or three workers in 20 weeks. Housing, meals and beef given to hands are not cash wages for Social Security and Medicare. Instead of quarterly Forms 941, the operation files one annual Form 943.
H-2A Workers
Farms and custom harvesters often employ seasonal H-2A workers. Their wages are exempt from Social Security, Medicare and federal unemployment tax. Federal income tax is withheld only if the worker and the employer agree, and wages are reported on Form W-2. H-2A workers count toward the 10-worker test for federal unemployment tax even though their wages are exempt.
Plant Shifts
Beef processing and aircraft assembly involve shift work, overtime and incentive pay. The regular rate for overtime must include shift differentials and production bonuses. Qualified overtime is reported separately so workers can claim the new deduction.
Drivers
Carriers and cattle haulers pay drivers by mile, load or hour. Per diem under an accountable plan within federal rates is not wages. Owner-operators leasing to carriers usually receive Form 1099-NEC when paid $2,000 or more in a year from 2026.
Crews Working in Other States
Custom harvesters and contractors who send crews to Oklahoma, Kansas, Nebraska and other states with income tax may need to register and withhold there once workers exceed each state's threshold. Payroll tracks days and wages by state so each state's requirement can be applied.
Children on the Family Farm
Children under 18 working for a parent's sole proprietorship or a partnership owned only by the parents are exempt from Social Security and Medicare, and under 21 from federal unemployment tax. Income tax withholding still applies. Paying children reasonable wages for real work can shift income into their lower brackets.
Storm Season Crews
After hailstorms, roofing and restoration contractors add workers quickly. Those who work under the contractor's direction are usually employees, even when hired for a few weeks, and need W-4s, I-9s and withholding from the first day.
Hotels and Restaurants
Hotels and restaurants along Interstate 40 employ housekeepers, desk staff and servers. Tipped staff may be paid $2.13 an hour in cash wages if tips bring them to at least $7.25. Employers report tips and may claim the FICA tip credit.
TWC
Employers register with TWC, file quarterly wage reports and pay unemployment tax. Farms that meet the agricultural thresholds register as agricultural employers.
Year-End
W-2s, W-3s, 1099-NECs and Form 943 are due January 31.
What We Handle
- Farm payroll and Form 943.
- H-2A worker payroll.
- Plant shift and overtime calculations.
- Driver pay and per diem.
- Tip reporting.
- TWC and year-end filings.
Amarillo Payroll Questions
When does a farm owe Social Security on a worker?
When the worker is paid $150 or more in cash in a year, or total farm cash wages reach $2,500.
Are H-2A wages subject to Social Security?
No, they are exempt from Social Security, Medicare and federal unemployment tax.
Which form do farms file?
Form 943.
Does Texas have state withholding?
No.
Talk to BOMCAS About Payroll in Amarillo
Payroll posts to the books and the business return, and owner pay is a planning question. Missed Forms 943 or 941 are fixed through back taxes, workers may want personal returns, hotels file hotel tax and foreign workers raise cross-border questions. Our statewide Texas pages cover business tax, personal tax, sales tax, bookkeeping, planning, back taxes and cross-border tax in more depth, with the Texas overview as the starting point.
Whether you run cattle north of town, a fleet on Interstate 40 or a clinic in the medical district, tell BOMCAS a little about it and we will reply with what to review first and what a quote requires. Use our contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Our Amarillo services are all linked from the Amarillo overview. Please treat this page as general information, not advice on your own circumstances.