268.065 Liability of amounts due from subcontractors and employee leasing firms.
Subdivision 1. Subcontractors. A contractor who contracts with any subcontractor shall guarantee the payment of all the taxes, interest, penalties, and collection costs that are due or become due from the subcontractor with respect to taxable wages paid on the contract by:
(1) withholding sufficient money on the contract; or
(2) requiring the subcontractor to provide a sufficient bond guaranteeing the payment of all taxes, interest, penalties, and collection costs that may become due.
The contractor may make a written request for verification that the subcontractor has paid the taxes due 60 calendar days after the due date for filing the tax report that includes the final wages paid for employment performed under the contract. If the subcontractor has paid the taxes for the period covered by the contract, the commissioner may release the contractor from its liability.
The words "contractor" and "subcontractor" include individuals, partnerships, firms, or corporations, or other association of persons engaged in the construction industry.
Subd. 2. Employee leasing firms. A person whose work force consists of 50 percent or more of workers provided by employee leasing firms, is jointly and severally liable for the unpaid taxes, penalties, interest, and collection costs that are due on the wages paid on the contract with the employee leasing firm. "Employee leasing firm" means an employer that provides its employees to other persons without severing its employer-employee relationship with the worker for the services performed for the lessee.
Subd. 3. Determination of liability. The commissioner shall make a determination as to the liability under this section. The determination shall be final unless the contractor or person found to be liable files an appeal within 30 calendar days after being sent the determination by mail or electronic transmission. Proceedings on the appeal shall be conducted in accordance with section 268.105.
Official Publication of the State of Minnesota
Revisor of Statutes