Bill passes exempting farmers from unemployment tax for migrants

By Christina Lengyel | The Center Square

(The Center Square) – A bill that would change Pennsylvania tax law for farmers to mirror current federal policy has passed through the House Agriculture and Rural Affairs Committee.

House Bill 1157 would spare farmers from paying unemployment taxes for migrant workers with H-2A visas, as these workers are not eligible to receive unemployment benefits. It would also free workers from having part of their pay docked to go toward the state’s unemployment fund.

Because farms across the state are so dependent on migrant work for their operations, the bill’s sponsor, Rep. Christina Sappey D-Kennett Square, says it will save Pennsylvania farmers thousands of dollars annually in unnecessary tax payments.

“House Bill 1157 is pretty cut and dry and it’s something that is very important to ag operations across the commonwealth,” said Sappey, whose district is famously associated with the mushroom farming industry.

“We owe it to our farmers to make smart tax policy changes,” said Sappey about aligning federal and state policies. She suggested that it would be a “no-brainer” to relieve farmers of the tax burden so they could instead invest in their work and the local economy.

She emphasized that it does not impact immigration law in any way, nor should it impact hiring policies for farmers.

The bill received broad bipartisan support, passing the committee 23-3.

One of the dissenting voters was Rep. Stephanie Borowicz, R-Lock Haven, who took issue with the wording of the bill, calling it “poorly written.”

“I also hope to see that Democrats also want taxes taken out of American workers also headed down the pike here,” said Borowicz.

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