Many new businesses start as sole proprietorships or partnerships. When the time comes for a Florida business owner to expand and hire employees, there are several logistics that must be attended to. Many of these relate to state and federal taxes as well as other laws.
According to the U.S. Small Business Administration, one of the first steps to be taken is the requesting of an Employer Identification Number. This number is used when reporting taxes and other information to select government entities. Companies should also set up a system for tracking and managing employee compensation, taxes and other related items for ongoing financial statement reporting. This system should be able to accommodate all federal and state taxes.
Another important task is to set up an appropriate workers’ compensation insurance policy. From there, business owners will want to post appropriate notices around the worksite as required by law.
When it comes time to hire an employee, a Form I-9 must be completed and filed as part of the process of verifying the candidate’s eligibility for legal employment in the U.S. The Florida Department of Revenue explains that every new hire or rehire must be reported to the state within 20 days of the date that the hire or rehire took effect. This reporting can be done online or via paper submission to the New Hire Reporting Center in Tallahassee. Both employee and employer data is requested in this process. The Federal EIN is one piece of information that is required as part of this reporting.