Sec. 102. Classification
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/bill/119/s/4010/is/section-102·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For purposes of this title, a service provider payee shall be classified as either an employee or an independent contractor in accordance with the following: A service provider payee meeting the requirements of section 103 shall be classified as an independent contractor. A service provider payee meeting the requirements of section 104 shall be classified as an employee. A service provider payee that meets neither the requirements of section 103 nor the requirements of section 104 shall be classified as the service provider payee elects in accordance with section 105.
Subject to paragraph (2), the service recipient payor is responsible for determining whether a service provider payee is properly classified as a mandatory independent contractor, a mandatory employee, or an elective classification service provider payee, for purposes of subsection (a). The service provider payee is responsible for determining whether the service provider payee is properly classified as a mandatory independent contractor if the classification of the service provider payee as an independent contractor is based on meeting the requirements of— section 103(2)(A) (relating to licensed professions, trades, or occupations); section 103(2)(B) (relating to business entities); section 103(2)(E) (relating to bona fide sole proprietors); or section 103(2)(F) (relating to formal bona fide contractors).
The classification determination of a service provider payee shall be made by the service recipient payor or service provider payee (as required under this subsection) immediately upon entering into an economic relationship between the service recipient payor and the service provider payee. A service provider payee or a service recipient payor, as applicable, shall reclassify or review the classification determination under this section in accordance with section 106.