In addition to consulting a professional advisor, more detailed information on “Who is an Employee” for various purposes may be obtained from the following sources:
- Federal income, withholding and FICA (Social Security and Medicare) tax: Publication 15 – Circular E, Employer’s Tax Guide; Publication 15a, Employer’s Supplemental Tax Guide; and Publication 1779 – Employee or Independent Contractor. The IRS also has a Virtual Small Business Tax Workshop, an online resource for business owners who are not sure if they have employees or independent contractors. See www.irsvideos.gov/ virtualworkshop/ .
- Minnesota income tax: Minnesota Income Tax Withholding Instructions and Tax Tables, available from the Minnesota Department of Revenue or on its website at www.taxes.state.mn.us/ .
- Workers’ Compensation: Information on the Minnesota Worker’s Compensation System is available from the Minnesota Department of Labor and Industry. The Department of Labor and Industry has adopted rules addressing the conditions under which workers will be considered employees or independent contractors for workers’ compensation purposes. These rules can be found at Minnesota Rules Chapter 5224. Minnesota Rules is available at law libraries and many public libraries. A general information sheet on independent contractor/ employee questions is available from the Department of Labor and Industry’s Legal Services Unit, many public libraries, and on the Department’s website at www.doli.state.mn.us/WorkComp.asp/ .
- Federal Fair Labor Standards Act: U.S. Department of Labor, Employment Standards Administration. Fact Sheet #13, Employment Relationship Under the Fair Labor Standards Act, www.dol.gov/ESA .
- Minnesota Fair Labor Standards Act: Minnesota Department of Labor and Industry, Labor Standards Division.
- Human Rights: Minnesota Department of Human Rights.
CREDITS: This is an excerpt from A Guide to Starting a Business in Minnesota, provided by the Minnesota Department of Employment and Economic Development, Small Business Assistance Office, Twenty-eighth Edition, January 2010, written by Charles A. Schaffer, Madeline Harris, and Mark Simmer. Copies are available without charge from the Minnesota Department of Employment and Economic Development, Small Business Assistance Office.