Under Florida law, businesses are required to report independent contractors they pay $600 or more in a calendar year. Specifically, Section 409.2576 of the Florida Statutes requires any “person engaged in a trade or business who pays an individual for services rendered in the course of such trade or business” $600 or more in a calendar year to report it to the Florida Department of Revenue. This reporting requirement was established in late 2021 to improve the collection of child support, which historically could be circumvented.
A business subject to this law can file its report using the online reporting tool provided on the Florida Department of Revenue website. When filing the report, a business must include the following information:
the independent contractor’s name, address, social security number, date of birth (if available), and the date of services first rendered by the independent contractor triggering payment for those services; and
the name, address, and FEIN of the reporting business.
In addition, this law requires a business file its report within 20 days of the date of first payment in accordance with the information reporting requirements under section 6041A(a) of the Internal Revenue Code of 1986, or the date of the contract entered between the business and independent contractor, whichever date is the earlier of the two.
Final Remarks
If you are a Florida business using the services of an independent contractor and pay $600 or more in a calendar year to that independent contractor, you must report this to Florida Department Revenue within the time limitations outlined above and set forth in Section 409.2576 of the Florida Statutes. If you are new to this reporting requirement, you can register for an account with the Florida Department Revenue to file your report online. Alternatively, you can download the form and fax or mail it to the address provided by the department on its website.
The information provided in this article is for general informational purposes only. Nothing stated in this article should be taken as legal advice or legal opinion for any individual matter. As legal developments occur, the information contained in this article may not be the most up-to-date legal or other information.