If you are a business owner, then you know the only thing that is consistent is things will always change. The importance in knowing this is, if you don’t keep up with the changes, it could spell disaster for your business. The purpose of this post is to highlight a few things that have changed recently in the world of labor laws and practices.
Minimum Wage
On September 30th, 2021, the minimum wage in Florida was moved to $10.00 per hour. This law was passed in Amendment 2 that was voted on November 3rd, 2020. Per this amendment, the minimum wage will increase in increments of $1.00 every year until it reaches $15.00 per hour in the year 2026.
- Sept. 30th, 2021 – Minimum $10 per hour ($6.98 tip-based)
- Sept. 30th, 2022 – Minimum $11 per hour ($7.98 tip-based)
- Sept. 30th, 2023 – Minimum $12 per hour ($8.98 tip-based)
- Sept. 30th, 2024 – Minimum $13 per hour ($9.98 tip-based)
- Sept. 30th, 2025 – Minimum $14 per hour ($10.98 tip-based)
- Sept. 30th, 2026 – Minimum $15 per hour ($11.98 tip-based)
Make sure that you are in compliance with your payroll company on these new wage rules.
New Hires
All employers, regardless of size, are now required to report their newly hired or re-hired employees working in Florida to the state. Reporting is due within 20 days of when the employee is hired. My best advisement is to begin by reporting any new employees you’ve hired or rehired in the last 180 days. Then going forward be sure to report any new hires or rehires within 20 days of the hire date. A penalty of $25 per employee per month may be assessed for each failure to report a new hire.
Independent Contractor Reporting
On October 1st, Senate Bill 1532 now requires Florida Employers to report the hiring of independent contractors that will receive more than $600 in a year from you. This reporting will need to be the earlier of 20 days of the first payment to the contractor or, the date on which the employer and contractor entered into a contract.
The purpose of this is reportedly intended to increase reporting of income for the purposes of collecting child support payments. There is currently no indication that this reporting will be used for auditing whether an individual should be classified as an employee vs contractor but, it is my advisement to review your contractor classifications with your payroll.
To file online for either a new hire or and independent contractor you can register at the following link:
https://servicesforemployers.floridarevenue.com/Pages/home.aspx
Or to file via mail you can send this pdf by mail to:
Florida New Hire Reporting Center
P.O. Box 6500
Tallahassee, FL 32314-6500