A new requirement to submit new hire information for independent contractors has been passed in the State of Florida. Now, businesses must submit new hire information for their independent contractors to the Florida Department of Revenue. This is a significant change for businesses as previously reporting of independent contractors by a business was optional.

Background

Governor DeSantis signed into law Senate Bill 1532, amending Fla. Stat. 409.2576. This bill now requires any “service recipient” in Florida to submit a report to the State Directory of New Hires for each individual who is not an employee but is nonetheless paid $600 or more per calendar year for services.

What Does This Mean?

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

For example, if a business contracts with a painter on October 10 to paint its offices and makes the first payment to the painter on October 24, the business must submit information within 20 days of October 10.

If businesses (service recipients) report individuals electronically, the reports may be made in two monthly transmissions. However, the transmissions may not be less than 12 days or more than 16 days apart.

This report must include name, address, social security number or other identifying number assigned to the individual under section 6109 of the Internal Revenue Code, the date services for payment were first rendered by the individual, and the name, address, and employer identification number of the service recipient. You can submit questions on reporting to the Florida New Hire Reporting Center at (850) 656-3343 or Toll-Free 1 (888) 854-4791 or email newhiresupport@floridarevenue.com.

Bottom Line

Business should:

• Evaluate their existing independent contractor relationships and determine their reporting requirements under the new law; and
• update their internal onboarding and reporting policies.

Performing an audit of worker classifications is a recommendation for businesses due to mandatory state reporting obligations. This ensures that their independent contractors are properly classified.

Contact us if you would like more information on this law or assistance putting it into action!