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Documents used along the form
The Michigan Workers Independent Contractor Worksheet is an essential document for determining the status of independent contractors. However, several other forms and documents are often used alongside it to ensure compliance and provide necessary information. Below is a list of these related documents, each serving a specific purpose in the process.
- Certificate of Insurance (COI): This document proves that the independent contractor has valid insurance coverage, which is crucial for demonstrating financial responsibility in case of accidents or claims.
- Promissory Note: A Minnesota Promissory Note serves as a written promise to pay a specific amount of money, ensuring clarity and legal protection for both parties involved; you can find the form at promissoryform.com/blank-minnesota-promissory-note/.
- Form BWC-337: This form is required for partnerships, corporations, or limited liability companies to confirm their workers' compensation insurance status and compliance with state laws.
- General Liability Insurance Certificate: This certificate indicates that the contractor has general liability coverage, protecting against claims of property damage or bodily injury that may arise during work.
- Form 1040 Schedule C: Used by sole proprietors, this form reports income and expenses from a business, providing financial verification of the contractor’s operations.
- Subcontractor Agreements: These agreements outline the terms between the primary contractor and any subcontractors, clarifying roles, responsibilities, and payment terms for the work performed.
- Client References: A list of previous clients or contractors can help validate the contractor's experience and business relationships, further supporting their independent status.
- Business License: This document shows that the contractor is legally authorized to operate a business in their jurisdiction, ensuring compliance with local regulations.
- Tax Identification Number (TIN): A TIN is necessary for tax purposes and helps verify the contractor’s identity and business legitimacy with the IRS.
- Proof of Business Registration: This document verifies that the business is officially registered with the state, providing further evidence of its legitimacy and operational status.
These documents collectively help clarify the status of independent contractors and ensure that all parties involved are protected and compliant with state regulations. Having the right paperwork in order can streamline the auditing process and minimize potential issues down the line.
Michigan Workers Independent Contractor Worksheet Preview
MICHIGAN WORKERS’ COMPENSATION PLACEMENT FACILITY
P.O. Box 3337 Livonia, MI
(734)
Internet WEB Site: www.caom.com
October 3, 2008
CIRCULAR LETTER #222
MICHIGAN WORKERS’ COMPENSATION PLACEMENT FACILITY (MWCPF)
INDEPENDENT CONTRACTOR WORKSHEET
It has been an accepted practice in the residual market to consider a sole proprietor without employees as an independent contractor, if a Certificate of Insurance (COI) for the individual is presented. Effective July, 1, 2009, this practice will cease in the residual market (on new and renewal policies as of that date). In order for a sole proprietor without employees to be considered for independent contractor status, the MWCPF Independent Contractor Worksheet must be completely filled out and supplied to the entity undergoing a workers compensation audit.
Attached is a copy of the worksheet. As indicated on the worksheet, additional information may be requested to determine independent contractor status.
Sincerely,
Gary L. Thompson
MICHIGAN WORKERS’ COMPENSATION PLACEMENT FACILITY
INDEPENDENT CONTRACTOR WORKSHEET
TO BE COMPLETED BY THE INDEPENDENT CONTRACTOR
Policyholder Name form is being filled out for:
Subcontractor Name:
Doing Business As (DBA):
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If DBA is filed, attach a copy. |
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1. I operate as a : |
Sole Proprietor |
Partnership |
Corporation |
Limited Liability Company |
Note: If indicating |
Partnership, Corporation or Limited Liability Company, a Certificate of Workers’ |
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Compensation Insurance or a properly filed Form |
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2.The type of work I perform can be described as:
3.I hire employees or casual laborers to complete work for the named policyholder:
Yes |
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Number hired (Attach Certificate of Workers’ Compensation Insurance) |
No |
Form 1040 SCHEDULE C (Profit or Loss from Business) may be provided as verification. |
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4. I hire subcontractors to complete work for the named policyholder: Yes No If yes, additional information may be required.
5. I have General Liability coverage: Yes No
If yes, a Certificate of General Liability Insurance is required.
6.To validate my standing as an independent contractor, I state that I do not exclusively depend upon the payments of the named policyholder and have worked for the following general contractors or clients during the past twelve months.
NAME |
CITY |
TELEPHONE |
1.
2.
3.
I acknowledge that as a sole proprietor, I am by law not covered by or subject to the Workers’ Disability Compensation Act.
I certify the above represents a true and complete statement of my status as an Independent Contractor. I understand a company representative may verify this statement at any time. If requested, I agree to provide documentation to verify my status as a sole proprietor.
Signed: |
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Date: |
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(Independent Contractor) |
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Phone Number: |
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Email Address : |
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(Required)
This form is utilized as a test of the above individual’s independent status. By completing this form, it does not automatically remove the above individual’s exposure from the audit of the policy period in question. Additional information may be required. If independent status is proven, the exposure will not be charged.
ICW08
Similar forms
IRS Form SS-8: This form is used to determine whether a worker is an independent contractor or an employee for federal tax purposes. Similar to the Michigan Workers Independent Contractor Worksheet, it requires information about the worker’s relationship with the employer, including the degree of control the employer has over the worker.
- Georgia WC-14 Form: This essential form is used to notify the Georgia State Board of Workers' Compensation about workplace injury claims. Employees can submit their claims or request hearings, ensuring efficient processing of their benefits. More information can be found at Forms Georgia.
California Independent Contractor Determination Form: This document is used in California to assess whether a worker qualifies as an independent contractor. Like the Michigan worksheet, it includes questions regarding the nature of the work and the relationship between the worker and the hiring entity.
Texas Workforce Commission's Employee or Independent Contractor Questionnaire: This questionnaire helps determine a worker's classification in Texas. It shares similarities with the Michigan form by asking about the level of control and the type of work performed.
New Jersey Independent Contractor Registration Form: This form requires information about the business and its workers to establish independent contractor status. It parallels the Michigan worksheet in its focus on the nature of the work and the contractor's independence.
Florida Department of Revenue Independent Contractor Form: This form is utilized to determine the classification of workers in Florida. Similar to the Michigan form, it gathers information about the worker's business operations and their relationship with the employer.
Ohio Bureau of Workers' Compensation Independent Contractor Exemption Certificate: This certificate is used to exempt independent contractors from workers' compensation coverage. It shares a common goal with the Michigan worksheet in establishing independent contractor status.
Virginia Department of Taxation Independent Contractor Questionnaire: This questionnaire assesses whether a worker is an independent contractor for tax purposes. It resembles the Michigan form by focusing on the nature of the working relationship and the level of control exerted by the employer.
Illinois Department of Employment Security Independent Contractor Status Form: This form evaluates a worker's classification in Illinois. Like the Michigan worksheet, it includes questions about the worker’s independence and the nature of their work.
Washington State Department of Labor and Industries Independent Contractor Application: This application is used to determine independent contractor status in Washington. It is similar to the Michigan form in that it requires detailed information about the contractor's business practices and relationships.
More PDF Documents
Confirmation of Enrollment - The completion of this form helps protect the interests of students in need of support.
In California, ensuring proper management of your affairs can be facilitated by using a California Power of Attorney form, which legally empowers someone you trust to act on your behalf in critical matters. This document is vital for anyone looking to safeguard their interests and ensure their wishes are honored. To learn more about the process and obtain a reliable form, visit legalpdf.org/.
Mi-1040 Form 2023 - By using this form, players can easily access important financial information relating to their gaming activities.
Misconceptions
Understanding the Michigan Workers Independent Contractor Worksheet can be challenging. Here are seven common misconceptions about this form:
- Only Sole Proprietors Need This Form: Many believe that only sole proprietors must fill out the worksheet. In reality, partnerships, corporations, and limited liability companies also need to complete it if they want to be classified as independent contractors.
- A Certificate of Insurance is Enough: Some think that presenting a Certificate of Insurance alone is sufficient for independent contractor status. However, the worksheet must be filled out completely and submitted to qualify.
- Filling Out the Form Guarantees Independent Contractor Status: Completing the worksheet does not automatically grant independent contractor status. The information provided may still require further verification.
- Employees and Subcontractors are the Same: There is confusion about the difference between employees and subcontractors. The form specifically asks about hiring both, and each has different implications for independent contractor status.
- General Liability Insurance is Optional: Some individuals think that having general liability insurance is not mandatory. In fact, if you have it, you must provide a Certificate of General Liability Insurance.
- Independent Contractors are Always Exempt from Workers’ Compensation: While sole proprietors are typically not covered under the Workers’ Disability Compensation Act, this does not apply to all independent contractors. Each case can vary.
- Once Approved, No Further Documentation is Needed: Many assume that once they are classified as independent contractors, they won’t need to provide any more information. However, the policyholder may request documentation at any time to verify status.
Detailed Instructions for Using Michigan Workers Independent Contractor Worksheet
Completing the Michigan Workers Independent Contractor Worksheet is an important step for sole proprietors seeking to establish their status as independent contractors. This form must be filled out thoroughly and accurately to ensure compliance with the requirements set forth by the Michigan Workers' Compensation Placement Facility. Once the form is completed, it should be submitted to the relevant entity undergoing a workers compensation audit.
- Begin by entering the Policyholder Name for whom the form is being filled out.
- Next, provide the Subcontractor Name and the Doing Business As (DBA) name. If a DBA is filed, attach a copy of the documentation.
- Select your business structure by checking the appropriate box: Sole Proprietor, Partnership, Corporation, or Limited Liability Company. If you select Partnership, Corporation, or Limited Liability Company, remember to attach a Certificate of Workers’ Compensation Insurance or a properly filed Form BWC-337.
- Describe the type of work you perform in the designated space.
- Indicate whether you hire employees or casual laborers for the named policyholder by selecting Yes or No. If yes, include the number hired and attach a Certificate of Workers’ Compensation Insurance.
- State whether you hire subcontractors to complete work for the named policyholder. Again, select Yes or No. If yes, be prepared to provide additional information.
- Indicate if you have General Liability coverage by selecting Yes or No. If yes, a Certificate of General Liability Insurance must be attached.
- To validate your status as an independent contractor, list any general contractors or clients you have worked for in the past twelve months, including their NAME, CITY, and TELEPHONE number for each.
- Affirm your understanding that as a sole proprietor, you are not covered by or subject to the Workers’ Disability Compensation Act. Sign and date the form, and provide your phone number and email address, which is required.
Dos and Don'ts
When filling out the Michigan Workers Independent Contractor Worksheet form, it’s important to follow certain guidelines to ensure accuracy and compliance. Here are five things you should do and five things you shouldn’t do:
- Do provide complete and accurate information throughout the form.
- Do attach any required documents, such as a Certificate of Insurance or a copy of your Doing Business As (DBA) registration.
- Do clearly describe the type of work you perform in the designated section.
- Do indicate whether you hire employees or subcontractors and provide the necessary details.
- Do sign and date the form to certify the information is true and complete.
- Don't leave any sections blank; incomplete forms may delay the processing.
- Don't provide misleading or false information, as this can lead to penalties.
- Don't forget to include your contact information, such as phone number and email address.
- Don't assume that submitting the form guarantees independent contractor status; additional verification may be needed.
- Don't neglect to keep copies of the submitted form and any attachments for your records.