Payments to workers in connection with a circus, fair, parade, carnival, exposition, exhibition, or other similar activity

You may hire a worker in connection with a circus, fair, parade, carnival, exposition, exhibition, or other similar activity. Other similar activities include pet and horse shows, beauty pageants, flower or garden shows, and music or theatre festivals.

Your withholding obligations will depend on whether you regularly employ the worker and how long they work for you during the year.

On this page

• Steps
• References

Steps

1. Determine if the worker is an employee or is self-employed

   If you hire a worker for services in connection with a circus, fair, parade, carnival, exposition, exhibition, or other similar activity, the worker can either be an employee or a self-employed worker.

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   •  If the worker is a self-employed worker, do not continue to the next step.

     You do not withhold CPP, EI or income tax deductions.

     Generally, if you provide payments to a self-employed worker for their services, you need to report the amounts on a T4A slip.

     Learn more: Payments of fees for services

     If you are not sure if the worker is an employee or is self-employed

     It is important to determine if a worker is an employee or a self-employed. Employment status has direct impacts on your reporting and withholding requirements for the worker under the Canada Pension Plan (CPP), Employment Insurance Act (EIA) and the Income Tax Act (ITA).

     Learn more about the factors to consider when determining if a worker is an employee or is a self-employed worker: Employment status: Employee or self-employed

   • If the worker is an employee, continue to: Step 2 – Determine if your employee is considered to be an entertainer.

2. Determine if your employee is considered to be an entertainer

   For the purposes of employment in connection with a circus, fair, parade, carnival, exposition, exhibition, or other similar activity, an entertainer is a professional stage performer or performing artist who uses their creative talent and imagination for form or effect.

   Examples – Employees that are entertainers

   Examples include:

   • Acrobats
   • Clowns
   • Comedians
   • Contortionists
   • Dancers
   • Illusionists
   • Jugglers
   • Magicians
   • Musicians
   • Singers
   • Stilt-walkers
   • Trapeze artists

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   •  If your employee is considered an entertainer, do not continue to the next step.

     You have to deduct CPP, EI and income tax as you would for your other employees.

     Learn more: How to calculate

   • If your employee is not an entertainer, continue to Step 3 - Determine if your employee’s employment is pensionable and insurable.

3. Determine if your employee’s employment is pensionable and insurable

   1. Determine if your employee’s employment is pensionable

      If your employee's employment was performed in Canada and at the location of the circus, fair, parade, carnival, exposition or other similar activity, the employment is not pensionable if all of the following conditions apply:

      • Your employee is not regularly employed by you

      • Your employee works for you for less than 7 days in a calendar year

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      •  If your employee’s employment meets all of the conditions above, the employment is not pensionable.

        Where the employment is not pensionable, your employee can elect to pay CPP contributions on these earnings using Form CPT20, Election to Pay Canada Pension Plan Contributions, when filing their personal income tax return.

      • If your employee’s employment does not meet all of the conditions above, the employment is pensionable.

        If your employee works 7 days or more in the calendar year, the employment is pensionable from the first day of work. This applies even if the work occurs in different periods in the same year.

        If your employee's employment becomes regular, their employment becomes pensionable from the first day their employment becomes regular.

   2. Determine if your employee’s employment is insurable

      If your employee's employment was performed in Canada and in connection with the circus, fair, parade, carnival, exposition or other similar activity, the employment is not insurable if all of the following conditions apply:

      • Your employee is not regularly employed by you

      • Your employee works for you for less than 7 days in a calendar year

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      •  If your employee’s employment meets all of the conditions above, the employment is not insurable.

      • If your employee’s employment does not meet all of the conditions above, the employment is insurable.

        If your employee works 7 days or more in the calendar year, the employment is insurable from the first day of work. This applies even if the work occurs in different periods in the same year.

        If your employee's employment becomes regular, their employment becomes insurable from the first day their employment becomes regular.

   What if you are not sure if your employee’s employment is pensionable or insurable

   If you or a person working for you is not sure of the worker's employment status, either one of you can request a CPP/EI ruling to determine the status and whether the employment is pensionable, insurable, or both.

   Learn more: Request a CPP/EI ruling

   Learn more about factors to consider to determine if your employee is regularly employed, including examples: Circus and fair

4. Determine which deductions you need to withhold

   Depending on the particular circumstances, you must withheld the following deductions:

   • Income tax
   • CPP contributions – If employment is pensionable (Step 3a)
   • EI premiums – If employment is insurable (Step 3b)

   The amounts must be included in the pay period they were received or enjoyed.

    Learn more: How to calculate

5. Report the payment on a T4 slip

   You must report the following amounts on a T4 slip:

   • Box 14 – Employment income
   • Box 24 – EI insurable earnings, if employment is insurable (Step 3b)
   • Box 26 – CPP/QPP pensionable earnings, if employment is pensionable (Step 3a)
   • Box 56 – PPIP insurable earnings if individual worked in the province of Quebec, if employment is insurable
   • Any applicable codes for taxable benefits

    Learn more: T4 slip – Information for employers

References

Legislation