By: Ryan M. Helgeson, Esq.
Effective January 1, 2014, employers in the construction industry who use independent contractors must comply with new Illinois Department of Labor (IDOL) reporting requirements pursuant to the Illinois Employee Classification Act.
The first annual report must be submitted by the construction company to the IDOL on or before January 31, 2015. The report must contain the following for the 2014 tax year:
- The contractor name, address and business identification number;
- The individual, sole proprietor, or partnership name, address and federal employer identification number; and
- The total amount paid by the contractor to the individual, sole proprietor, or partnership performing services in the taxable year, including payments for services and for any materials and equipment that was provided along with the services.
A report shall be submitted by the construction company to the Illinois Department of Labor annually on or before January 31 following the taxable year in which the payments were made.
We realize that this additional reporting requirement is an unwelcome burden to Illinois construction companies.