Section 2.03 - Covered Business Entities and Covered Contract WorkersA business or trade shall annually determine if it is a covered business entity by the following method:
(1) The business or trade shall count the total number of self-employed individuals with whom the business or trade contracted for services during each pay period in the previous calendar year and was required to report the payment for such services on IRS Form 1099-MISC.(2) The business or trade shall then calculate its total workforce by adding the number of self-employed individuals counted in 458 CMR 2.03(1) to the total number of employees, including full time, part-time, and seasonal employees, that the business or trade employed during each pay period in the previous calendar year.(3) If the number calculated in 458 CMR 2.03(1) is greater than 50% of the number calculated in 458 CMR 2.03(2), then, for the following calendar year, the business or trade is a covered business entity, and the self-employed individuals who contract with the trade or business are covered contract workers.(4) Notwithstanding the requirements set forth in 458 CMR 2.03(1) through (3), self-employed individuals or covered contract workers properly classified in accordance with M.G.L. c. 151 A, § 2 are not considered part of an employer's workforce.Adopted by Mass Register Issue 1394, eff. 6/28/2019.Amended by Mass Register Issue 1422, eff. 7/24/2020.