Administrative Rules of Montana › Department 24 - LABOR AND INDUSTRY › Chapter 24.35 - INDEPENDENT CONTRACTORS › Subchapter 24.35.1 - Independent Contractor Exemption Certificate › Rule 24.35.112 - INDEPENDENT CONTRACTOR EXEMPTION CERTIFICATE APPLICATION AFFIDAVIT

Current through Register Vol. 13, July 5, 2024
(1) On the form provided by the department,
				the applicant shall provide all information designated as required. The form
				must be notarized, and the applicant must state, under oath, the veracity of
				all information on and attached to the form.
(2) The applicant shall also submit
				supporting documentation to prove applicant's qualification for an ICEC. The
				department has the discretion to assess the reliability of the documentation
				and award points for each item of proof as outlined by this rule. Each item of
				documentation submitted may count toward points in more than one category. No
				more than two items of proof may be submitted under each category. To qualify
				for an ICEC, an applicant's documentation must be awarded a minimum of 15
				points by the department for each independently established trade, occupation,
				profession, or business listed on the ICEC application.
(a) The department may award up to ten points
				for proof that the applicant has current workers' compensation, unemployment
				insurance, and Department of Revenue accounts for employees in each
				independently established trade, occupation, profession, or business. The
				department may award up to six points for proof of two insurance policies or
				accounts and may award up to three points for proof of one insurance policy or
				account.
(b) The department may
				award up to six points for each of the following proofs for each independently
				established trade, occupation, profession, or business:
(i) contract or memo of understanding that
				demonstrates applicant's independent contractor status. If the applicant can
				end a contract at any time without incurring any liability for failing to
				complete the project that is the subject of the contract, the department cannot
				award points for the contract under this rule. Separate contracts with
				different hiring agents may qualify for a maximum of six points. Each contract
				must include:
(A) payment based on a
				completed project;
(B) beginning
				and ending dates of the contract;
(C) liability for failure to complete the
				project;
(D) identification of who
				provides the materials and supplies;
(E) signatures by both parties; and
(F) defined body of work, complete project,
				or end result;
(ii)
				signed and dated list of equipment and tools owned or controlled by the
				applicant with approximate values. The equipment or tool list may be documented
				by a rental or lease agreement, county documents verifying the business
				equipment tax paid, or other means;
(iii) commercial general liability insurance
				policy or bonding;
(iv) most recent
				business tax forms filed within the past three years;
(v) IRS Form 1099s (miscellaneous income)
				from multiple hiring agents or two quarterly self-employment tax payments (IRS
				form 1040ES) within past three years; or
(vi) trucking company lease
				agreement.
(c) The
				department may award up to three points for each of the following proofs for
				each independently established trade, occupation, profession, or business:
(i) partnership or limited liability
				partnership agreement signed and dated by all partners that demonstrates:
(A) intent to form the partnership;
(B) contribution by all partners;
(C) a proprietary interest and right of
				control by the application; and
(D)
				the sharing of profit/loss;
(ii) current business license or building
				permit;
(iii) certificate of
				registration for the business entity issued by the Montana secretary of state;
(iv) articles of incorporation,
				annual report, articles of organization, or other documentation that verifies
				the applicant is an officer in a corporation, a manager in a manager-managed
				limited liability company, or a member of a member managed limited liability
				company;
(v) proof of ownership,
				home occupation license, rental or lease agreement with a statement that the
				property may be used for business or commercial use, or proof of IRS filing for
				use of home as a business;
(vi)
				educational certification for unlicensed occupations relevant to the trade,
				occupation, or profession for which the applicant seeks the ICEC;
(vii) current professional license relevant
				to the trade, occupation, or profession for which the applicant seeks the
				ICEC;
(viii) membership in a
				relevant professional association or affiliation;
(ix) current motor carrier (MC) authority
				number in applicant's personal or business name;
(x) business bank account; or
(xi) copies of advertising in a newspaper,
				phone book, website on the internet, or other venue.
(d) The department may award up to
				one-and-one-half points for each of the following proofs for each independently
				established trade, occupation, profession, or business:
(i) federal employer identification number
				(EIN);
(ii) Dunn and Bradstreet
				number;
(iii) telephone or utility
				bill(s) in the business name;
(iv)
				credit card(s) or purchase account(s) in the business name;
(v) preprinted business invoices, business
				cards, or brochures;
(vi) proof of
				order(s) for printed hats, shirts, or other promotional items for the
				business;
(vii) proof of business
				advertising using a vehicle sign, yard sign, bulletin boards, or posted
				flyers;
(viii) invoices billed to
				the business name or a bid proposal or estimate, either of which must include
				the address and phone number of the recipient;
(ix) vehicle registration(s) in the business
				name; or
(x) international fuel tax
				account number (IFTA) in the applicant's personal or business name.
(e) The applicant may submit any
				other supporting documentation. The department has discretion to assess the
				reliability of and determine the point value of any documentation not listed in
				this rule.