ATTENTION: A new state law effective Jan. 1, 2009, requires individuals (not corporations, LLCs or partnerships) who work as independent contractors in the building construction industry to obtain from the Department of Labor and Industry an Independent Contractor Exemption Certificate (ICEC).
To obtain an ICEC, individuals must complete and submit an application, fees and supporting documents that establish they meet the conditions required to operate as an independent contractor. To operate as independent contractors, individuals must be able to meet the conditions set out in the law's nine-factor test.
For details about the Independent Contractor Exemption Certificate program and requirements, view the following fact sheet, brochure and slide show, or visit the FAQ page
WHAT IF YOU DO NOT FOLLOW THESE RULES?
Contractors who employ individuals who do not have an ICEC will face civil penalties if they do not provide workers' compensation and unemployment insurance to these individuals, and do not properly withhold state and federal taxes from their employees' pay.
In addition to penalties for failure to provide workers' compensation and unemployment insurance, employers may also be subject to civil penalties of up to $5,000 per violation for violating provisions of the ICEC laws and rules. Individuals may also be subject to civil penalties if they provide false or misleading information in an ICEC application, fail to meet all requirements of the nine-factor test to qualify as an independent contractor, allow another person to use their ICEC, misrepresent their status as an independent contractor, or alter or falsify an ICEC.
Hey Paul and Kathy,
My sister Denise who works with me at Re/Max helps with opens and the like. She is not in the "construction field". So she does not need to apply for the ICEC?
Thanks,
Tim
No -- The ICEC is right now only for "Construction" industry. The jobs are defined this link: http://www.doli.state.mn.us/ic_statrule.html#Subd2
Per the statute posted, here is what it says:
Subd. 2. Limited application. This section only applies to individuals performing public or private sector commercial or residential building construction or improvement services. Building construction and improvement services do not include: (1) the manufacture, supply, or sale of products, materials, or merchandise; (2) landscaping services for the maintenance or removal of existing plants, shrubs, trees, and other vegetation, whether or not the services are provided as part of a contract for the building construction or improvement services; and (3) all other landscaping services, unless the other landscaping services are provided as part of a contract for the building construction or improvement services.