Florida's payroll laws require both employers and employees to adhere to regulations and submit paperwork involving such issues as hiring, withholding taxes, and garnishing wages. State regulations require employers to report newly hired employees within 20 days of their employment. Employers must also comply with orders to garnish an employee's wages for child-support payments or as mandated by court order. Even if you are self-employed, you must comply with federal regulations about contributing to the Social Security fund.
New Hire Reporting
Florida Statute 409.2576 requires all employers to report newly hired or rehired employees to the state within 20 days of their start dates. Temporary employees must also be reported when they report for an assignment, although they only need to be reported once, not at the beginning of every new assignment. However, if there is a significant break in their service or a gap in wages, they do need to be reported again when they resume work. If an individual meets Internal Revenue Service guidelines to qualify as an independent contractor, he does not need to be reported as a new hire. Employers will need to present their own federal employer certification number, name, mailing address and payroll address, as well as the employee's name, address, date of hire and Social Security number. The reason for the statute is to help expedite child-support payments from parents who change jobs, and is also meant to help detect or stop fraud involving unemployment insurance, welfare and workers' compensation.
Garnished Income
If an employer receives an Income Reduction Notice from the state, he must begin withholding (garnishing) salary and making payments. These are usually issued for child-support payments, but may also be for other reasons resulting from a court order or other legal procedure. There are limits to the amount which may be withheld, regulated by the federal Consumer Credit Protection Act. Title III of the act states that garnished wages must be the lesser of 25 percent of the employee's disposable income or "the amount by which disposable earnings are greater than 30 times the federal minimum hourly wage."
Withholding Taxes
All employees in the United States have to file a Form W-4 with the IRS, giving the employee the opportunity to claim dependents and file for child tax credits. Federal income taxes will subsequently be deducted from the employee's paycheck based on the information supplied on the W-4. Social Security and Medicare taxes are also automatically withheld by employers. Even if you are self-employed in the state of Florida, you must participate in this system by submitting the forms and payments yourself.
