Effective October 1, 2021, certain Florida businesses will be required to submit new hire information for their independent contractors to the Florida Department of Revenue. Specifically, Florida businesses that have paid an independent contractor $600 or more in a calendar year must submit new hire information within 20 days of entering into the agreement with the contractor or making the first payment to the contractor, whichever is earlier.
Below is a link to the paper reporting form: https://servicesforemployers.floridarevenue.com/SiteAssets/docs/CS-EF315-LIB-Fillable.pdf
Am I required to report all contractors or those hired after the October 1, 2021 effective date?
The new law pertains to all independent contractors meeting and/or exceeding the $600 threshold within a calendar year. In 2021, for example, if a contractor has accrued $605 for the year by 10/01/2021, then the employer would need to report the contractor by 10/21/2021.
Are the rules different for 2022?
For 2021, the $600 reporting threshold is effective after 10/1/21. For 2022, a contractor would need to be reported the moment they reach the $600 threshold for the calendar year (1/1/2022-12/31/2022). For example, if a contractor has accrued $600 for the year by 2/01/2022, then the employer would need to report the contractor by 2/21/2022.
Am I required to complete the reporting annually or per contract?
According to email correspondence with a Florida Revenue Specialist, this is a calendar year requirement. Please be aware this may change upon additional guidance from the state (i.e. contract length).
Are there any exemptions?
Employees or individuals that are employed by or under contract with a federal or state agency performing intelligence or counterintelligence functions and the head of such agency has determined that reporting pursuant to this section could endanger the safety of the employee or individual or compromise an ongoing investigation or intelligence mission are exempt.
Contractors paid less than $600 in a calendar year are also exempt.
How is the information reported?
Paper – a completed paper form can be mailed to the state (see above for link to paper form)
List - To report multiple individuals, you can submit a list containing the required data by fax or mail. Please use at least a 10-point font size.
Electronic Reporting - Use the Child Support Services for Employers website to report online. You can report individual records or upload your own reports with multiple individuals. https://servicesforemployers.floridarevenue.com/Pages/home.aspx
Is this a change in the law or a new law?
Under state and federal laws, employers with 250 or more employees were already required to report newly hired employees and rehired employees to the State Directory of New Hires within 20 days of hire. The amendment does two things. First, it expands the reporting requirements to all businesses, regardless of the number of employees. The reporting requirements extend to any entity that is a “service recipient,” defined as “a person engaged in a trade or business who pays an individual for services rendered in the course of such trade or business.” Independent contractors who are paid, or will be paid, $600 or more during a calendar year must be included. Second, it requires employers to report information regarding independent contractors, with the exception of contractors employed by federal or state agencies that perform intelligence or counterintelligence functions.
What are the reporting penalties?
The statute is silent as to penalties for failures to report.
What is the purpose of this statute?
Florida’s Senate Committee on Children, Family, and Elder Affairs explained the law’s purpose: “income paid to individuals not classified as employees is not reported to the State Directory of New Hires, limiting the ability of the Child Support Program to collect child support by income deduction… Mandatory reporting of these individuals in the same manner as employees could result in increased child support collections for families.”
What steps should I take to properly report?
Training human resources personnel and/or hiring staff regarding the new law and working with any external payroll vendors to adjust reporting procedures. Please feel free to contact our office with any questions.