Donald Joe Moorhead, Dba Don Moorhead Harvesting Company v. United States of America, Clifton Gattis, Dba Packing Company v. United States

BACKGROUND FACTS AND PROCEEDINGS

In this case we are called upon to decide whether an alien “commuter” commuting daily or seasonally to the United States to perform agricultural labor in the United States is exempt from the Federal Insurance Contributions Act (“FICA”), 26 U.S.C. §§ 3101-3126 , under the foreign-agricultural-worker exemption of Section 3121 of the Internal Revenue Code. The appellant-employers brought suit against the United States of America (the “Government”) claiming that the wages they had paid to their alien “commuter” employees were exempt from FICA taxation. The district court granted the Government’s motion for summary judgment and dismissed the plaintiffs’ complaints, holding that the wages appellants had paid to their alien “commuter” employees are not exempt from FICA taxes under 26 U.S.C. § 3121 (b)(1) because that section exempts only agricultural workers admitted under the H-2 program. We affirm because the employees’ status as “commuter” aliens precludes their “employment” from being exempted under section 3121(b)(1).

Plaintiff-appellant Don Moorhead (“Moorhead”) operated an agricultural harvesting business during the years 1977, 1978, and 1979, in…