New Requirements for Florida Businesses Using Independent Contractors
As of October 1, 2021, Florida businesses are now required under Fla. Stat. § 409.2576 to report services received from independent contractors to the State Directory of New Hires. Businesses that pay or will pay independent contractors more than $600 during a calendar year must file a report 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. The new hire reporting process for independent contactors is mostly the same as the process for reporting employees and can be accomplished through the same online reporting tool. The report must include the (i) name, (ii) address, (iii) Social Security number or other identifying number assigned to the individual under section 6109 of the Internal Revenue Code, (iv) the date services for payment were first rendered by the individual, and (v) the name, address, and employer identification number of the service recipient.
The recent amendment to Fla. Stat. § 409.2576 also expands the reporting requirements to all businesses or “service recipients,” regardless of the number of employees. The amendment defines “service recipient” as “a person engaged in a trade or business who pays an individual for services rendered in the course of such trade or business.”
Florida businesses that use independent contractors should determine whether individuals will meet the $600 threshold before the end of the calendar year to ensure timely reporting occurs. Businesses should also evaluate whether they are properly classifying employees and independent contractors.