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.
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?
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.