I 112th CONGRESS 2d Session H. R. 5320 IN THE HOUSE OF REPRESENTATIVES April 27, 2012 Mr. Welch (for himself and Mr. Hanna) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the quarterly wages paid threshold for classification as an agricultural labor employer for purposes of unemployment taxes.

1.

Short title

This Act may be cited as the Growing Small Farms Act of 2012.

2.

Increase in quarterly wages paid threshold for classification as agricultural labor employer

(a)

In general

Subparagraph (A) of section 3306(a)(2) of the Internal Revenue Code of 1986 is amended by striking $20,000 and inserting $40,000. (b)

Employment

Clause (i) of section 3306(c)(1)(A) of such Code is amended by striking $20,000 and inserting $40,000. (c)

Inflation adjustment

Paragraph (2) of section 3306(a) of such Code is amended— (1)by striking In the case of agricultural labor and inserting (A) In the case of agricultural labor, (2)by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and moving such clauses 2 ems to the right, and (3)by adding at the end the following new subparagraph: (B)In the case of any year beginning after 2013, the dollar amounts contained in paragraph (1)(A) and subsection (c)(1)(A)(i) shall each be increased by an amount equal to— (i)such dollar amount, multiplied by (ii)the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2012 for calendar year 1992 in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100. . (d)

Effective date

The amendment made by subsection (a) shall apply with respect to remuneration paid after December 31, 2012, for services performed after such date.