« Continue Browsing

e-mail article Print     e-mail article E-mail

Associated Press, Published June 20 2012

Minnesota implementing new builder registration

MINNEAPOLIS — The state of Minnesota is scrapping a law that was meant to curb shady employment practices in the construction industry.

The Star Tribune reports http://bit.ly/NeqI27) that next month, the Department of Labor and Industry is phasing in a new registration system for independent construction contractors. At the same time, the Department of Revenue will phase out a four-year-old registration law that contractors largely sidestepped.

The 2008 law was meant to separate legitimate small businesses from workers looking for day labor jobs, and to collect a 2-percent withholding tax from companies that hired independent contractors. But thousands of workers simply registered as limited liability companies instead, and officials say the amount of tax collected was a pittance.

The new system will require contractors to prove they are an actual small business.


Information from: Star Tribune, http://www.startribune.com

Copyright © 2012 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.