This bill amends Minnesota Statutes 2024, section 142A.29, to include independent contractors and payors in the centralized work reporting system for child support purposes. Key definitions are updated to include "independent contractor," defined as individuals or entities providing services for compensation of $600 or more per year, and "payor," which refers to those who pay independent contractors. The bill mandates that employers and payors report the hiring of any employee or independent contractor to the commissioner of children, youth, and families within 20 calendar days of hiring. It also specifies the means by which this reporting can be done, including electronic submissions and other authorized methods.

Additionally, the bill introduces sanctions for noncompliance, including civil penalties for employers or payors who fail to report as required. A notice of noncompliance will be sent to those who do not adhere to the reporting requirements, and subsequent violations can incur further penalties. The bill emphasizes that all state entities and payors must report independent contractors in the same manner as employees, ensuring a comprehensive approach to tracking work relationships for child support enforcement. The effective date for these changes is set for January 1, 2026.

Statutes affected:
Introduction: 142A.29