New Obligations for Florida Employers

Effective October 1, 2021, all companies who pay over $600 to an independent contractor located in Florida must report it to the State Directory of New Hires (“Directory”).

Florida has long required employers to report the name, address, date of hire, and social security number of every new and rehired employee and the name, address, and federal employer identification number of the reporting employer.

However, the Directory reporting requirements have been amended to require reporting by employers and “service recipients.” A service recipient means a person engaged in a trade or business who pays an individual for services rendered in the course of such trade or business.

The amendment requires that all employers and service recipients in the state furnish a report for each newly hired or rehired employee or individual who is not an employee but is provided payment for services rendered, unless the employee or individual is 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.

For individuals who are not employees, but provide services, the service recipient must report the include the name, address, and social security number or other identifying number assigned to the individual under section 6109 of the Internal Revenue Code of 1986; the date services for payment were first rendered by the individual; and the name, address, and employer identification number of the service recipient.

Reports to the Directory must take place with 20 days of the date of hire for employees and the earlier of the first payment or the date on which a contract providing for such payments is entered into for contractors. Accordingly, companies should update their onboarding process to ensure compliance with this new requirement. In light of this, it is recommended that companies evaluate and carefully consider their classification of individuals as contractors.

The entire text of Senate Bill 1532 can be found here.

For questions or additional information, please contact Burke Warren partner Rachel Bossard at 312-840-7029 or rbossard@burkelaw.com.