A question that often comes up at the Law Library is whether a worker is an employee or independent contractor.  Proper classification is essential in determining the tax and benefit responsibility of the employer.  If a worker is classified as an employee, the employer must withhold taxes, pay unemployment taxes and carry workers compensation insurance. 

The Minnesota Department of Revenue Fact Sheet does a good job of explaining the classifications, offers examples and provides contact information for determination requests.

 

2 Responses to “Independent Contractor or Employee?”

  1. Richelle Lyons says:

    How does this rule apply to one self employed sub-contractor whom is 1099 at the end of the year however is paid hourly as well as has a start time. This is very important as the rules of this issue change when sub-contractor is evading 3 outstanding money judgements. How to proceed?

  2. The Law Librarian says:

    A more up-to-date fact sheet can be found at: http://www.revenue.state.mn.us/businesses/withholding/factsheets/factsheet08.pdf

    If you still have questions about a particular classification, call the MN Revenue phone number listed on the fact sheet. Since you describe a situation involving money judgement evasion, consider discussing the matter with an attorney.

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