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Can I hire employees as independent contractors to save money on taxes in Florida? What are the requirements?
Based on the information provided in the Florida Statutes, it is not advisable to hire employees as independent contractors to save money on taxes in Florida.
Exemptions for Employees [FLCL 205.066]
According to FLCL 205.066, an individual acting in the capacity of an independent contractor is not an employee. Therefore, if you hire someone as an independent contractor, they are not exempt from local business taxes and fees.
License Requirements for Employee Leasing Companies [FLCL 468.525]
Additionally, if you are considering hiring employees through an employee leasing company, you should be aware of the license requirements outlined in FLCL 468.525. Employee leasing companies must have a registered agent for service of process in Florida and at least one licensed controlling person. The company must also have a tangible accounting net worth of not less than $50,000, and must maintain an accounting net worth and positive working capital.
License Required for Employee Leasing Companies [FLCL 468.526]
Furthermore, employee leasing companies are required to obtain a license from the Florida Department of Business and Professional Regulation before engaging in business in the state. The license fee is not to exceed $2,500, and there is also an annual assessment fee.
Annual Assessment on Gross Florida Payroll [FLREG 61G7-5.002]
Employee leasing companies are subject to an annual assessment fee based on the preceding calendar year’s gross Florida payroll of the company or group. The assessment fee is due on April 1 of each year and becomes delinquent after April 30. The fee is calculated based on a table provided in FLREG 61G7-5.002.
Licensee’s Insurance; Employment Tax; Benefit Plans [FLCL 468.529]
Employee leasing companies are responsible for timely payment of reemployment assistance taxes and providing workers’ compensation coverage. They are not permitted to sponsor a plan of self-insurance for health benefits. Additionally, an initial or renewal license may not be issued to any employee leasing company unless the company first provides evidence to the board that it has paid all of its obligations for payroll, payroll-related taxes, workers’ compensation insurance, and employee benefits.
Based on the above information, it is not advisable to hire employees as independent contractors to save money on taxes in Florida. Instead, it is recommended that you comply with the requirements outlined in the Florida Statutes for hiring employees through an employee leasing company.
If you have any further questions or concerns, it is recommended that you consult with a licensed attorney in Florida.
[FLCL 205.066][FLCL 468.525][FLCL 468.526][FLREG 61G7-5.002][FLCL 468.529]
Jurisdiction
Florida