Florida rule changes on which employers must report new hires

Florida employers with more than 250 employees have always been required to report new hires. Now, regardless of how many employees your business has, you must report all new hires including certain independent contractors to the state.

How new rule works

All Florida employers must let the Florida Department of Revenue (FDR) know about:

• New hires within 20 days of the employee’s hire date; or
• Independent contractors within 20 days of the earlier date for whenever (1) a payment is made or (2) the contract is entered into, provided they earn $600 or more in a calendar year.

The requirement also applies to rehired or recalled employees.

Employers can report the information electronically by e-mail or fax. The FDR’s website details the reporting options. You also may need a hard copy of the Florida New Hire Reporting Form. You must provide specific information including Social Security number, date of birth, address, and classification (employee or independent contractor).

Employer concerns

The new requirements help the FDR locate individuals for purposes of establishing paternity and enforcing child support obligations. Some employers are concerned, however, the new forms could be used to target a business for misclassifying its employees as independent contractors.

While the full impact of requiring the reports is still unclear, now is a good time to review how you classify your service providers and ensure they are properly identified.