Employed vs Self-Employed in Agriculture Business

Many farm businessess are debating if an individual working on the farm should be classified as an employee or self-employed.

Here are a few factors to consider:

1. Control test - If the hirer controls how and when an individual must perform the duties on the farm, this is indicative of an employment relationship.
2. Integration test - Are the activities of the individual integrated with the farm? Is the farm the sole or mostly the sole hirer of the individual? If the answer is yes to these questions, it would be indicative of an employment relationship.
3. Entrepreneur test - If the farm provides all the tools and equipment and there is no risk of loss for the individual, it could be an indicative of an employment relationship.
4. Specific results test - If the individual is hired for an indefinite period and an indefinite project, it could be an indicative of an employment relationship.
5. Contractual intent - Is there a written working arrangement with a common intent to enter into an agreement? If there is no working arrangement, it could be indicative of an employment relationship.

If you are still debating on this subject or want more information, please contact your local BDO advisor.