Hidden Springs Winery, Inc. v. Employment Division

Petitioner seeks review of an order of the Employment Division which determined that, for employment tax purposes, petitioner is a subject employer with respect to its winemaking activities. We affirm.

We take our facts from the referee’s opinion. Petitioner is a “Subchapter S” corporation. Its stated purpose is “to operate a winery and to engage in any other lawful activity whatsoever.” Petitioner leases two acres of land, including the winery and a 1.5-acre prune orchard. The winery produces about 7,000 gallons of wine annually. Don Byard and his wife and Alvin Alexanderson and his wife are…