Florida Businesses Must Report Independent Contractors As of October 1 | FordHarrison

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Abstract: As of October 1, 2021, businesses in Florida will be required to submit information about new hires of their independent contractors to the Florida Department of Revenue. This is a significant change for businesses in Florida, as the reporting of independent contractors by a business was previously optional.

Background

On June 16, 2021, Governor DeSantis promulgated Senate Bill 1532, amending the Stat. 409.2576, to now require any “service recipient” in Florida to submit a report to the state New Hire Directory for each person who is not an employee but who is nonetheless paid $ 600 or more per calendar year for employees. services.

What does that mean?

Specifically, Florida businesses that paid $ 600 or more to an independent contractor in a calendar year must submit new hire information within 20 days of their first independent contractor payment or the due date. which the company and the independent contractor entered into the contract, whichever is earlier.

For example, if a company (the “service recipient”) contracts with a painter on October 10 to paint their offices and makes the first payment to the painter on October 24, the company must submit the information within 20 days of October 10.

If businesses (service recipients) report individuals electronically, reports can be made in two monthly transmissions, but transmissions cannot be less than 12 days apart or more than 16 days apart.

The report must include (i) name, (ii) address, (iii) social security number or any other identification number assigned to the person under Section 6109 of the Internal Revenue Code, (iv) the date on which the payment services were first rendered by the individual, and (v) the name, address and employer identification number of the recipient of the service. Questions about the reports can be submitted to the Florida New Hire Reporting Center at (850) 656-3343 or toll free 1 (888) 854-4791 or by email at [email protected]

Final result

Companies must:

  • Assess their existing relationships with independent contractors and determine their reporting requirements under the new law; and
  • Update their internal integration and reporting policies.

Given the mandatory reporting obligations to the state, it is also recommended that companies consider performing a classification audit of their workers to ensure that their independent subcontractors are properly classified.


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