2009 ICEC

[pike doctor]

So how many of my fellow contractors out there understand the new Independent contractor exemption certificate (ICEC)?

I just learned about it and I am more confused than ever.

I am the sole prop of an LLC. Do I need to get one of these to do work for other contractors? AND If I have other people work for me do they need to get one?

Just seems like more hoops to jump through. Very frusterating. I think it is $150 every two years. And people wonder why a small roof or siding job cost almost 10k. Insurance, fees and taxes are really starting to *!SS me off!!

[Roofer]

LOL, I hear you, but I think it's good.

From what I understand, they are trying to get rid of the fly by nighters, pop up companies, and illegals.

I have not seen the paperwork yet, but I am licensed so it won't be necessary.

This is just for subs, correct? I haven't looked into the paperwork yet. The DOLI site is under construction, so nothing to be seen there. I think it takes effect Jan. 1st.

[buckeyes08]

I went to my continue ed. and the state sent out the info. about it. The one that have to have it is a sole prop. if your a partnership, LLC, or a corp. you don't need it! Please check the ICEC law out.

I was told at my cont. ed. that if your a partnership, llc or corp. and doing sub. work you don't need it as long you still run your bis. separate from the one your subing to and keep your paper work show that your running your biz.

I other thing is the state will deduct $100 off your ICEC if you turn it in before jan 1 with your renewal for your lin. is what I heard at my cont. ed. again please check in to it.

I'm restructuring my company right now!

[morpho]

I'm also lost with this a do 1099 contract work in the it industry running cable etc for a company out of state .. no idea what i need..

[jgeatz]

Currenty I'm a liscense building contractor in Mn. I called down to the state and they said anyone doing any sub work has to have this, even if you are already liscensed, plumber, electrician, etc. If you sub out work you must keep copies of these for all your subs for five years. Just like another tax for the liscense guys, but hopefully will get rid of the bad apples like stated earlier.

[morpho]

my question is it mainly states for the construction industry I'm in a shady area of that since i do I.T. service etc. I'm more angry about the 2% hold back

[jgeatz]

If you bill the homeowner directly, then you don't need it, otherwise in the state of Mn you need it no matter what kind of work you do. Sheetrockers,Tapers,Heating,security,etc.

[Roofer]

If you bill the homeowner directly you are not a sub. Also, you must be licensed.

[buckeyes08]

You can sub to another as long as you keep your biz. separate like paper work and ect. and still sub as long you still do work elese were at lease one in a year.

You also need to be a LLC, Partnership, or Corp. and you don't need to be ICEC.

Also you have make shur you don't fall under the 7 rule guide that they have out. I have also talk to the state and they said it applies to LLC, Partnership, and Corp.,but it does not follow there part were it say LLC, Partnership, and Corp. are exempt from the ICEC. They said as long as you don't fall under the 7 rule you don't need to have the ICEC.

There whole thing is to clamp down on the sole porp. who do work for one or sub to one for a long time. So the one hiring them to do the work has to carry the proper ins. on them and make it harder for the fly-by-nighter.

[Roofer]

There whole thing is to clamp down on the sole porp. who do work for one or sub to one for a long time. So the one hiring them to do the work has to carry the proper ins. on them and make it harder for the fly-by-nighter.

I also think this is to clamp down on the paper contractors who have been getting by in the past. There is alot of this in the exteriors business. A salesman/business owner/contractor bids jobs day in and out. Then they hire the actual work to another sub company.

Being a Contractor you have a few choices. 1. hire subs 2. hire employees 3. do the work yourself

There has been a loop hole for years where they could sub work out cheap to illegitimate companies. This way they don't have to have comp on them, and a cheap insurance is all that is needed. I think they are closing this loop hole, and collecting more taxes all in one shot.

[buckeyes08]

I agree roofer and to the state employee are start to lose there jod and this way it crates more money for them to keep there jobs too.

I heard that this was coming for a long time!

[minneman]

I'm thinking this is again nothing more than a way for the state to get more money out of us. If we do sub work for someone we need the icec, that costs us $$$. if we hire someone without icec, we're subject to a fine. If I get hired by a HO, and dont have an icec, who's going to care? what benifit is this to us?

[buckeyes08]

If your lin. you can still do sud work without the ICEC as long as you are separate biz. then the one you sub too and are exempt from ICEC. Its in the pamphlet read it!!!

The state when I called was saying something a liitle diff.,but the pamphlet has all the rules. Read them!!!

[Roofer]

The way I read it, ALL subs will either have to be a real business or have this certificate. The site is now up.

http://www.doli.state.mn.us/ic.html

[Roofer]

Also,I would be prepared for a hike in prices due to this.