This bill aims to enhance the centralized work reporting system in Minnesota by including independent contractors and payors in the reporting requirements. It amends several sections of Minnesota Statutes 2024, specifically section 142A.29, to define "independent contractor" and outline the responsibilities of employers and payors in reporting the hiring of employees and independent contractors. The bill mandates that employers and payors report any hiring of employees or independent contractors within 20 calendar days and provides various means for reporting, including electronic submissions. Additionally, it establishes penalties for noncompliance, including civil fines for intentionally unreported individuals.

Furthermore, the bill repeals subdivision 9 of section 142A.29, which previously required the state and political subdivisions to report independent contractors in the same manner as employees. The effective date for these changes is set for July 1, 2026. Overall, the legislation seeks to improve the tracking of child support obligations by ensuring that all forms of compensation, including those paid to independent contractors, are reported to the centralized work reporting system.

Statutes affected:
Introduction: 142A.29
1st Engrossment: 142A.29, 518A.53