Recent amendments to Florida statutes, effective October 1, 2021, requires Florida businesses to report new hires and independent contractors to the Department of Revenue.
What Has Changed and Why?
In the past, Florida employers with 250 or more employees were required to report their newly hired employees to the State Directory of New Hires of the Florida Department of Revenue and made it optional to report independent contractors. However, the statute (Florida Statute section 409.2576) has recently been amended to apply to all employers in the state, regardless of size. The amendment also requires businesses to report independent contractors who are paid $600 or more in a calendar year. Independent contractors must now be reported within 20 days of the start of the contractual relationship or the first payment, whichever occurs first.
The implementation of this new legislation was to improve Florida’s child-support system by making reporting requirements the same for independent contractors as for employees. In doing so, this should facilitate the enforcement of child support benefit through income deduction orders, which previously could be circumvented by independent contractor pay structures.
What Do You Need to Do?
When reporting an independent contractor, a company must provide the individual’s name, address, Social Security number (or other identifying number assigned under Section 6109 of the Internal Revenue Code), date of birth (if available), the date services for payment were first performed by the individual, and the name, address, and employer identification number of the service recipient (business). When submitting the information, the company should use the Florida New Hire Reporting Center website established for employers.
If changes to onboarding procedures and reporting practices have not already been implemented, they need to be incorporated now, because the amendments are in effect. Businesses that have not utilized new hire reporting system in the past can register here to set up an account for electronic reporting.
Should you have any questions or need more information, please do not hesitate to contact us at 407-412-9299 or info@felsingcpa.com.
Source: Florida Department of Revenue, Child Support for Employers