§ 6-3-7-5 — Independent contractor; worker's compensation election for exemption; notification of tax treatment

Indiana § 6-3-7-5

• Jurisdiction: Indiana
• Art. 3: STATE INCOME TAXES
• Ch. 7: Miscellaneous

Text

(a) As used in this section, "independent
contractor" refers to a person described in IC 22-3-6-1(b)(7) or IC 22-3-7-9(b)(5).
(b) As used in this section, "person" means an individual, a
proprietorship, a partnership, a joint venture, a firm, an association, a
corporation, or other legal entity.
(c) An independent contractor who does not make an election under:
(1) IC 22-3-6-1(b)(4) or IC 22-3-6-1(b)(5) is not subject to the
compensation provisions of IC 22-3-2 through IC 22-3-6; or
(2) IC 22-3-7-9(b)(2) or IC 22-3-7-9(b)(3) is not subject to the
compensation provisions of IC 22-3-7;
and must file a statement with the department with supporting
documentation of independent contractor status and obtain a certificate
of exemption under this section.
(d) An independent contractor shall file with the department, in the
form prescribed by the department, a statement providing the following
information:
(1) The independent contractor's name, trade name, address, and
telephone number.
(2) The independent contractor's federal identification number or
Social Security number.
(3) The name and:
(A) Social Security number;
(B) federal employer identification number (FEIN); or
(C) taxpayer identification number (TIN);
of each person or entity with whom the independent contractor
has contracted.
(e) Along with the statement required in subsection (d), an
independent contractor shall file annually with the department
documentation in support of independent contractor status before being
granted a certificate of exemption. The independent contractor must
obtain clearance from the department of state revenue before issuance
of the certificate.
(f) An independent contractor shall pay a filing fee of five dollars
($5) with the statement required in subsection (d). The fees collected
under this subsection shall be deposited into a special account in the
state general fund known as the independent contractor information
account. Money in the independent contractor information account is
annually appropriated to the department for its use in carrying out the
purposes of this section.
(g) The department shall keep each statement and supporting
documentation received under this section on file and on request may
verify that a certificate of exemption is on file.
(h) The certificate of exemption required by this section must be on
a form prescribed and provided by the department. A certificate issued
under this section is valid for one (1) year. The department shall
maintain the original certificate on file.
(i) A certificate of exemption must certify the following
information:
(1) That the independent contractor has worker's compensation
coverage for the independent contractor's employees in
accordance with IC 22-3-2 through IC 22-3-7.
(2) That the independent contractor desires to be exempt from
being able to recover under the worker's compensation policy or
self-insurance of a person for whom the independent contractor
will perform work only as an independent contractor.
(j) The department shall provide the certificate of exemption to the
person requesting it not less than seven (7) business days after
verifying the accuracy of the supporting documentation. To be given
effect, a certificate of exemption must be filed with the worker's
compensation board of Indiana in accordance with IC 22-3-2-14.5(f)
and IC 22-3-7-34.5(g).
(k) Not more than thirty (30) days after the department receives an
independent contractor's statement and supporting documentation and
issues a certificate of exemption, the department shall provide the
independent contractor with an explanation of the department's tax
treatment of independent contractors and the duty of the independent
contractor to remit any taxes owed.
(l) The information received from an independent contractor's
statement and supporting documentation is to be treated as confidential
by the department and is to be used solely for the purposes of this
section.
(m) A contractor who knowingly or intentionally causes or assists
employees, including temporary employees, to file a false statement
and supporting documentation of independent contractor status
commits a Level 6 felony.

Legislative History

As added by P.L.75-1993, SEC.1. Amended by P.L.202-2001, SEC.1; P.L.158-2013, SEC.89.