Add Dropdown Menu Fields Legal Illinois Independent Contractors Forms For Free

The Freelance Worker Protection Act provides protections for independent contractors who provide products or services in Illinois or who work for a hiring entity located in Illinois when the value of that work is equal to or greater than $500 in a 120-day period.

In sum, the new federal rule is that a worker is an independent contractor if the worker is, as a matter of economic reality, in business for themselves. In California, most jobs are governed by the so-called “ABC Test,” which is stricter than the new federal test.

Within 20 days of hiring an independent contractor, employers must obtain a completed W-9 form and submit the information to the Illinois Department of Employment Security (IDES). This is the same process required of employers for hiring any new employee.

Penalties for Worker Misclassification in Illinois Under the Illinois Employee Classification Act, employers may be required to pay a civil penalty of $1,000 for each violation involving misclassification of workers.

Reporting threshold For tax year 2023, payment apps and online marketplaces are required to file a 1099-K for personal or business accounts that receive over $20,000 in payments from over 200 transactions for goods or services. There are no changes to what counts as income or how tax is calculated.

The new rule, which becomes effective March 11, 2024, rescinds the 2021 independent contractor rule issued under former President Donald Trump and replaces it with a six-factor test that considers: 1) opportunity for profit or loss depending on managerial skill; 2) investments by the worker and the potential employer; ...

H.R. 7024 would increase the reporting threshold for the 1099-MISC and 1099-NEC from $600 to $1,000 for payments made on or after January 1, 2024. For future years, this threshold would be tied to inflation. The bill would also decrease the reporting threshold for payments of direct sales from $5,000 to $1,000.

Share: The Department of Labor (DOL) has finalized its new rule expanding eligibility for overtime pay to millions of workers. Effective July 1, 2024, certain salaried workers earning less than $43,888 per year (or $844 per week) will become eligible for overtime pay.

The 2024 Final Rule replaces a more employer-friendly rule from 2021. It adopts a six-factor test focused on the ?economic reality? of the engaging entity and the worker to determine whether federal wage and hour law applies to the worker.