TIDBITS
FLORIDA EMPLOYERS NOW MUST REPORT INDEPENDENT CONTRACTORS HIRED BY THEIR BUSINESS
Under a new Florida law effective October 1st , Florida employers must report independent contractors they hire to the Florida New Hire Reporting Center .
Florida employers have been required to report newly hired employees within 20 days of hiring to the New Hire Reporting Center . This requirement was designed to help the state collect child support . Reporting independent contractors ( nonemployees ) was not part of this requirement , but this has changed with the new law .
Starting October 1 , 2021 , in addition to reporting newly hired employees , businesses must report to the State of Florida ’ s directory of new hires any independent contractor that it pays $ 600 or more in a calendar year ( basically , anyone your business issues a tax form 1099 to ).
If your business already reports new hires to the New Hire Reporting Center , the process for reporting independent contractors is the same . If you pay an individual who is not an employee $ 600 or more in a calendar year for services provided in the course of your trade or business , you will need to report :
■ The independent contractor ’ s name , address , Social Security Number
■ The date the independent contractor first provided services to your business
■ The name , address , and FEIN of your business
Reports are due within 20 days of when your business pays the independent contractor or when your business signs a contract with them , whichever is earlier .
You can report newly hired employees and independent contractors electronically or you can file a paper form by either mail or fax . Click here for the website to report new hires or to print forms .
If your business has hired independent contractors this year , you should immediately review how much they have been paid so far in 2021 and determine if they will meet the $ 600 threshold before the end of 2021 . As soon as they reach $ 600 in payments from your business , it triggers the requirement to report them within 20 days . Also , if your business is considering hiring new independent contractors , you need to determine if signing the contract will trigger the $ 600 reporting threshold .
If you have a payroll service that already reports your new employees to the state for your business , you need to determine if they are going to report your independent contractors or if your business will have to report them .
If you have questions , you can call the Florida New Hire Reporting Center at 888- 854-4791 or visit the website listed above
30 DITCHMEN • NOVEMBER 2021