This SDSU Extension calculator provides a method for farm families to determine what the full value of the wages/salary and benefits are being provided to employees, family and non-family.
To use the calculator the wage/salary of the employee and the value of all benefits and bonuses paid by the operation should be included in the spreadsheet. The benefits may include: health insurance, retirement allocations, the monthly value of housing, transportation and/or utilities, the value of produce or production provided, the value of equipment, boarding or feed provided and any other items specific to the operation.
Bonuses should also be included. Indicate what the performance indicator is and the value in the spreadsheet.
The spreadsheet also provides the operation with calculations for federal tax withdrawals that should be withheld and submitted to the IRS. This provides the employee with an understanding of why they do not receive the full value of their labor in their paycheck.
Lastly, the calculator provides a comparison of the hourly wage received if a different number of hours per week are worked, and how the benefits and bonuses affect the hourly wage.
Disclaimer: The preceding is presented for informational purposes only. SDSU does not endorse the services, methods or products described herein, and makes no representations or warranties of any kind regarding them. This publication is not legal advice and should not be substituted for the guidance and recommendations of experienced legal counsel. Legal questions specific to your situation should be directed to a licensed attorney.