Agriculture and horticulture

Introduction

This article provides information on what the Canada Revenue Agency (CRA) looks at when determining whether the employment of a worker engaged in agriculture or horticulture is pensionable or insurable, or both, under the Canada Pension Plan (CPP) and the Employment Insurance Act (EIA).

Employer responsibilities

All employers are required by law to deduct CPP contributions and employment insurance (EI) premiums from most amounts they pay to their employees. Employers must remit these amounts to the CRA along with their share of CPP contributions and EI premiums. More information on employer responsibilities and obligations can be found through our Payroll menu page.

Explanations

Generally, agricultural workers are employed in farming, in activities such as these:

Horticultural workers are employed in activities such as these:

Workers who are engaged in aquaculture (cultivation of aquatic plants or animals), silviculture (cultivation of trees) or viticulture (cultivation of grapevines) are not considered to be agricultural or horticultural workers.

Employee or self-employed worker?

To determine if a person is an employee or a self-employed worker, the CRA looks at the factual working relationship between the worker and the payer. For general information, see Guide RC4110, Employee or Self-employed

If the worker is self-employed, the employment is neither pensionable nor insurable. Therefore, the remainder of this article will not apply to the employment in question. However, all self-employed workers pay the CPP contributions at the time they file their income tax return and may opt into the EI program for self-employed individuals. Please see Responsibilities, benefits and entitlements for employees and self-employed workers for more information.

If, on the other hand, the worker is an employee, continue reading to determine whether the employment is pensionable or insurable, or both.

Pensionable and insurable employment?

An employee in the field of agriculture or horticulture is engaged in pensionable or insurable employment, or both, in accordance with the CPP and EIA.

However, an employee in the field of agriculture or horticulture is not engaged in pensionable or insurable employment, or both, when this employment meets the conditions outlined in the CPP and EI Regulations. These conditions are explained in detail in the following sections:

Conditions excepting the employment from pensionable employment

When an employee works in agriculture or horticulture, the employment is not pensionable if one of the following conditions applies:

If neither of these conditions applies, the employment is pensionable, starting from the first day of work.

However, the worker may elect to pay CPP contributions on these earnings when certain conditions are met. Please refer to Form CPT20, Election to Pay Canada Pension Plan Contributions for more information.

Examples of excepted employment:

In these three cases, the employment is not pensionable because one of the conditions applies.

Conditions excluding the employment from insurable employment

When an employee works in agriculture or horticulture, the employment is not insurable if one of the following conditions applies:

If neither of these conditions applies, the employment is insurable, starting from the first day of work.

Examples of excluded employment:

In both cases, the employment is not insurable because one of the conditions applies.

How to request a ruling

If a worker or payer is not sure of the worker's employment status, either party can request a ruling by the CRA to have the status determined. More information on the ruling process is available in How to get a CPP/EI ruling.

For information on the possible implications of a CPP/EI ruling, go to Have you received a CPP/EI ruling?

For more information

To get more information, call the CRA’s business enquiries line at 1-800-959-5525.

Legislative references

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