Florida Legal and Tax Information
Health Insurance: One health insurance option for small businesses is the health savings account, or HSA. The idea of the program is to combine a high deductible health insurance policy with an account to save for qualified medial expenses, including doctor visits, emergency room charges, prescription drugs and other health related costs. All insurance companies in Florida are required to offer HSAs. Because HSAs require a minimum policy deductible of $1,100 for self only coverage and $2,200 for family coverage, premiums may be lower.
Individuals (or their employers) can make annual contributions to an HSA of up to the amount of the policy deductible with a maximum of $2,850 for an individual or $5,650 per family. HSA contributions and any earnings in federably qualified programs grow tax deferred and can roll over form year to year. The amount deposited can also be deducted from gross income on the employee's tax return. HSAs belong to the employee, so as jobs change, the account moves with the employee.
See Florida Dept of Financial Services Small Group Market Carriers (list of health insurance companies which offer health insurance to the small business owner)
Taxes which May be Due By Florida Business Owners IRS Individual tax questions (800) 829-1040, Business tax questions (800) 829-4933 Forms and publications (800) 829-3676
Florida State: Florida Deparmtent of Revenue (800) 352-3671 See Florida Department of Revenue
See IRS website and A-Z index for businesses and publication 583 (starting a business) and publicaion 334 (Tax guide for small business)
Federal Employer Identification Number (EIN): sole proprietorships do not need an EIN. To apply for EIN download an SS-4 at the IRS site and mail it to IRS Service Center, EIN Operation, Holtsville, NY 11742..
Federal Employment Tax: Business that have employees must withold federal income tax, Medicare tax and Social Secruity tax form employees' wages. In most cases you pay the tax monthly or semiweekly, either by the Electronic Fedearl Tax Payment System (required if deposits total more than $200,000 annually) or by using form 8109, Federal Tax Deposit Coupons. Report the tax on form 941, Employer's Quarterly Federal Tax Return.
Small employers that have an employment tax liability of $1,000 or less for the year may no pay annually on Jan 31. File form 944, Employer's Annual Federal Tax Return.
Federal Unemployment Tax (Due January 31, April 30, July 31, October 31): Floridians are required to report wages and pay taxes to the Federal Unemployment Compensation program if they paid $1,500 in wages within a calendar quarter or have employed one or more people for any portion of a day in 20 different weeks during the calendar year. The tax rate is 6.2% on the first $7,000 of wages, but you can take a credit for the amount paid in state unemployment tax up to 5.4% which is the maximum rate in Florida. If a business's FUTA tax liability for a quarter is $500 or less, the tax may be held over to the next quarter and added to that quarter's tax liability.
Pay the tax either by the Electronic Federal Tax Payment System or by using form 8109, Federal Tax Deposit Coupons. Report the tax annually on federal form 940.
Florida Corporate Income Tax (Due April 1): Corporations doing business in Florida are subject to the 5.5% tax.
C-Corporations pay the tax on form F-1120. If a Corporation ows more than $2,500 annually in Florida corporate income tax, it must make estimated tax payments on form F-1120ES on or before the 1st of the 5th, 7th and 10th month of the taxable year and the 1st month of the following tax year. If the business shows net income of $45,000 or less and conducts all business in Florida, it may file the short form, F-1120A.
LLCs classified as a corporation for federal tax purposes must file a Florida coporate income tax return. LLC that are classified as partnerships are required to file a Florida Partnership Information Return (form F-1065) if they are doing business in Fl and one or more of their owners are corporations.
S-Coproations in Fl file an F-1120 corproate income tax return for the first year it does business in the state. Unless there is federal taxable income at the corproate level, no state filing is required for subsequent years.
Florida Sales and Use Tax (Due 1st day of the month): Fl businesses muc collect sales tax for many products and services. If your business will invovle taxable transactions, you must register as a sales and use tax dealer (form DR-1). Most business pay monthly on form DR-15, with returns and payments due on the first day of the enxt month after the tax was collected. Payments are late after the 20th of the month.
Businesses that file $1,000 or less per year, however, may file quarterly. If a busienss files $500 or less, it may file annually.
Businesses that pay $30,000 annually in sales and use tax are required to file electronically at MyFlorida.com
Florida Discretionary Surtax (Due 1st day of the month): Many Fl counties impose an additional discretionary sales surtax on transactions that are subject to the state sales and use tax. Businesses report the surtax on form DR-15 with sales and use tax.
Florida Use Tax on Out-of-Sate Purchases (Due 1st month after the quarter in which prucahse was made): This tax applies to iterms purchased out of state form internet sites, etc. It is also imposed on items purchased during out of state travel when the merchandise is shipped to the invidual's home or business's location in FL. Fomr DR-15MO is used to make payment.
Florida tangibile personal property tax (Due April 1): Fl business that own tangible personal property (equipment, furniture, computers, etc) that is not included in the assessed value of the real property must pay an annual tax. The tax is paid on form DR-405 to the county property appraiser.
Employment Laws
US Department of labor and US Dept of Labor, Wage and Hour Division and US Depart of Justice: Americans with Disabilities Act and US Dept. of Labor Occupational Safety and Health Administration
New Hires: Employers are required to provide information on all newly hired and rehired full and part time employees within 20 days. This is to comply with the federal Personal Responsiblity and Work Opportunity Reconciliation Act of 1996 which seeks to expedite collection of child support from paretns who change jobs fequently.
Minimum Wage: Florida minimum wage for 2007 is $6.67 an hour; tipped employes who meet the eligibility requirements of the federal Fair Labor Standards Act may be paid an hourly wage of $3.65 an hour.
The Fiar Labor Standards Act applies to most businesses involved in interstate commerce. It requires payment of the minimum wage and overtime pay of not less than one-and-one half times the regular pay rate after 40 hours of work. It restrcits employment of children uner 16 and forbids employers form hiring children under 18 for certain dangerous jobs. Some employees are exempt such as commissioned sales people, drivers, farmworkers, seasonal workers and white collar professionals. Check with the Department of Labor on exmptions.
Workers Compensation: Florida law reuqires employers that are not in the construction industry and have 4 or more employees, either full or part time to have workers' compensation. In the construction industry, it is required when there is one or more full or part time employee. Corporate officers are included in the definition of "employee" Agricultural employers who have more than 5 regular employees and/or 12 or more other workers for seasonal agricultural labor lasting 30 days or more must have coverage. For employers engaged in the construction industry, up to 3 corporate officers or 3 members of a LLC who own ar leat 10% of the corparation or company may exmpt themselves form carrying workers' compensation coverage.
See Florida Dept of Financial Services, Division of Workers' Compensation (850) 418-1601
See Florida Workers' compensation joint underwriting association (941) 378-7400
See National council on Compensation Insurance (561) 893-1000 (Florida Office)
Family and Medical Leave Act: This law applies to businesses with 50 or more employees and gives certain employees up to 12 weeks of unpaid job protected leave per year. Employees may take leave for the birth of a child, if they adopt a child or provide foster care, care for a seriouly ill spouse, child or parent, or suffer a serious health condition.
Occupational Safety and Health Act of 1970: Federal law requires businesses to provide a safe workplace and in many cases to maintain records of job related injuries and illnesses. Employers with 10 or fewer employees are exampt from most requirements of the recordkeeping rule, as are industries classified as low hazard-retail, service, finance, insurance and real estate.
