Michigan Now Using 20-Factor Test to Identify Independent Contactors
Motor Carriers, and other companies, operating in Michigan please take note: Effective January 2013 Michigan’s Workers’ Compensation Agency Department of Licensing and Regulatory Affairs began using the IRS’s “20-Factor Test” to determine if an individual is an independent contactor or an employee of an organization. Employers must comply with state and federal employment and tax laws, including withholding certain taxes, contributing toward unemployment and providing workers compensation insurance for employees; requirements which would not apply to independent contractor’s whose services are being hired by the motor carrier. It is vital that organizations who utilize the services of independent contractor’s familiarize