Florida Expands New Hire Reporting

Effective October 1, 2021, Florida (FLDOE) now requires businesses hiring independent contractors and consultants (individuals) to report such hiring to the Florida Department of Revenue.  This legislation effectively mirrors the existing law requiring employees to report new employee hires to the FLDOR.

The legislation does not expand any payroll tax collection or reporting requirements. The purpose and intent of the law is to enhance child support compliance and enforce payments due to the custodial parents.

The law requires businesses hiring independent contractors or consultants (individuals) to report the “new hire” within 20 days of the first payment to the contractor or the date on which the engagement is entered into a contract to provide services. 

There are several methods to report the required information:

• Submit FLDOR Form CS-EF315 via facsimile to: (850) 656-0528, which may be the simplest method.

Florida New Hire Reporting Form (floridarevenue.com)

• Submit FLDOR Form CS-EF315 via postal mail:     

Florida New Hire Reporting Center

P.O. Box 6500

Tallahassee, Florida 32314-6500

• Multiple independent contractor hires can be reported in MS Excel format:

            FL_ExcelFormat.pdf (floridarevenue.com)

• Internal Revenue Form W-9 appears to contain all the data elements required for reporting. If the business obtained Form W-9, they may supply it using method 1 or 2.
• For reporting large amounts of data, FLDOR will accept Secure File Transport Protocol or SFPT.

Secure FTP Instructions.pdf (floridarevenue.com)

• Many national payroll processing companies also process independent contractor or Form 1099-MISC payments for their customers. Clients using those services should confirm that their payroll processor can provide the new hire reporting information on their behalf.
  
  

The FICPA has been working closely with the FLDOR to provide answers to questions from Florida CPAs.  Here are the questions and answers which have been provided.     

Q1.      What is penalty for non-compliance?     

There is no penalty at this time.

Q2.      Will there be a Tax Information Publication (TIP)?

No; however, the information needed, including reporting requirements, reporting options, FAQs and other resources, is available on the Child Support Services for Employers Website

Q3.      Could an employer submit a W-9 instead of the form?

Yes, as long as the name, address and EIN (Employer Identification Number) of the service recipient is included on or with the form, along with the date services were first rendered by the individual reported.  IRS Form W-9 includes an optional field for the requester’s name and address. 

Q4.      Is there a way to make the PDF form a fillable PDF form?

Yes; the Child Support Program will create a PDF fillable form and make it available on the Child Support Services for Employers Website.

It will now be more important than ever that businesses using subcontractors have Form W-9 completed and on file prior to making any payment to the subcontractor.

If you would like to discuss how your business may be impacted or would like more information about Kerkering, Barberio & Co.’s tax services, please contact Julie Bynum or your Kerkering Barberio tax consultant at (941) 365-4617.