Is the person an employee or something else?
Whether a helper is an employee, an independent contractor, an intern or a volunteer is decided by legal tests, not by what you call them. Agencies look at who controls the work, who provides tools, how the person is paid and whether the person is in business independently. Misclassifying a worker can lead to penalties, back taxes and claims.
Ask a tax professional, your state labor department and an attorney how the rules apply to your arrangement. Do not rely on a casual agreement or on what a neighbor does.
A written offer letter or agreement is a good habit even for part-time help. It should state the job, pay rate, hours, how and when you pay, and who the person reports to. A short document avoids misunderstandings, but check its wording with an attorney or your state labor office, since some terms are regulated.
What registrations and taxes may apply?
Employers commonly have to obtain an employer identification number, register with state tax and unemployment offices, collect required forms from workers, withhold and report taxes and keep records. Some farm employers are treated differently from other employers, and the details depend on size and pay. Ask a tax professional and the federal and state agencies what applies to you.
Set up payroll records from the first paycheck. Keep copies of forms, hours and payments, and ask a professional how long to retain them.
- Employer identification and state tax registrations
- Required forms from each worker
- Withholding, reporting and deposit rules
- State unemployment insurance rules
- Pay records and retention rules
- Wage and hour rules, which may differ for farm work
What about workers compensation?
Many states require employers to carry workers compensation insurance, and some exempt small farms or certain farm work. The rules differ widely. Ask your state workers compensation office and your insurance agent whether you must carry it, and what it would cover. Even where it is not required, ask what happens if a helper is hurt.
Do not assume your homeowners or farm liability policy covers injuries to workers. Often it does not.
Ask your insurance agent about hired drivers and equipment use, as well. If a helper drives a farm vehicle or runs a tractor, your coverage and your risk change, and some policies have restrictions. Make sure helpers have the training and licenses that your state requires for the work they do.
What safety duties do you have?
Farm work includes tractors, animals, chemicals, heights, heat and confined spaces, and injuries can be serious. Federal and state safety agencies such as OSHA publish information, and some rules apply to farms of certain sizes or activities. Ask your state labor or safety office what applies to you.
Provide training, working equipment and clear instructions, and never ask a helper to use equipment they have not been trained on. Special rules protect minors, and young workers are limited in the tasks they may do, so check your state and federal rules before hiring anyone under eighteen, including family and neighbors' children.
What about interns, volunteers and exchanges?
Unpaid helpers, work trade and farm stay exchanges are common on small farms, and they are also a common source of legal trouble. Whether unpaid work is allowed depends on the person's role, what they receive and who benefits. Ask your state labor department and an attorney before offering room, board or learning in exchange for work.
Written agreements help set expectations, but they do not override the law.
What should you do before the first hire?
Write a clear description of the job, hours and pay. Call your tax professional, your insurance agent and your state labor office with that description. Ask about registrations, insurance, safety rules and records, and set up your systems before the helper starts.
Keep a file for each worker with forms, training notes and agreements, and review your setup each year. If a helper is hurt, get medical help first and then contact your insurer and state office about required reports.
Plan for good communication. Clear instructions, regular feedback and safe working conditions keep helpers longer and protect everyone. Review hours, pay and safety each season, and update your paperwork when the work or the person's role changes. Consider also what you will do if a helper quits, is injured or makes a mistake. Having a written set of procedures, a list of emergency contacts and a plan for covering key jobs makes the farm less dependent on one person and protects you when something goes wrong. Review the plan with every new worker.
Key takeaways
- Worker classification is decided by legal tests, not labels.
- Employers may need tax, unemployment and payroll registrations.
- Workers compensation rules vary by state, so ask before hiring.
- Train workers and follow special rules for minors.
- Get professional advice before using interns, volunteers or work trade.
Sources and further reading
Last reviewed: November 12, 2026. Written by the Homestead & Small Farm Editorial Team. See our editorial policy.