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In 2014, the Department of Labor issued a new reporting requirement for contractors who had construction services performed for it by an individual, sole proprietorship, or partnership that is not an employee of the contractor. Essentially, any individual or party with compensation that is reported on a 1099 must be reported to the Department of Labor. For 2014, the filing was due by January 31, 2015; however, the filing has been extended for 2015 and is due April 30, 2016. The submission can be filed on the Department of Labor website.

The reporting requirement is not applicable to the following:

• a business primarily engaged in the sale of tangible property
• a contractor doing work for a business primarily engaged in the sale of tangible property
• individuals or firms meeting the responsible bidder requirement (30 ILCS 500/30-22 of the IL Procurement Code)

FAQs related to the reporting can be found on the DOL website.

Please feel free to contact us if you have any questions regarding the reporting requirement.