Contractors Forms Package - Minnesota 2025

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Generally, a worker is a legitimate independent contractor if: The worker determines when, where, and how to performs the work. The workers work is not essential to the employers business.
If you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-NEC needs to be completed, and a copy of Form 1099-NEC must be provided to the independent contractor by January 31 of the year following payment.
How Much Does It Cost to Get a Contractor License in Minnesota? The application fee is $180 for all license types. There is also a $50 fee to register for the required exam. Residential Building Contractors and Residential Remodelers pay an additional fee to the Contractor Recovery Fund based on gross annual receipts.
Employers are not required to complete Forms I-9 and use E-Verify for their independent contractors. The Form I-9 regulations use common-law understandings of employer-employee relationships to describe who is an independent contractor.
If you decide to hire independent contractors, youll need to collect the following documentation: Form W-9. Forms W-8BEN or W-8BEN-E. Form 1099-NEC. Form SS-8. Independent contractor agreement. Confidentiality agreement (NDA) Non-compete agreement. Non-solicitation agreement.
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A contractor who provides services in more than one special skill area must be licensed. Specialty contractors who provide only one special skill are not required to have a state license (except residential roofers).
The main differences between W-9 and 1099 tax forms are that a W-9 is filled out by the supplier or independent contractor to provide their tax and payment information to the payer, whereas 1099 forms are provided by the payer to document the supplier or contractors gross earnings and any backup withholding after
A form W-9 is used to collect a contractors tax information. A form 1099 is used to document any payments that a client has made to a contractor, if those payments total more than $600. Both forms are mandatory.

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