Florida $10 Minimum Wage

On November 3rd, 2020, Florida voted on Florida Amendment 2, the $15 Minimum Wage Initiative. “Yes” received more than 60% of the votes, the new minimum wage will be $15 in September 2026.

What does that mean for now?

It means that starting on Thursday, September 30th, 2021, work done in the state of Florida will need to be paid at $10/ hour for non- tipped employees, and $6.98/ hour for tipped employees.

The increased wage will likely be in the middle of a pay period. If that is the case be sure to review your employees hours to ensure that they are paid correctly. If you need to split time please let as know as soon as possible.

The minimum wage will increase by a dollar per year until it reaches $15 in September of 2026.

The linked notice should be hanging at your workplace to make your employees aware of the change.

Linked in Spanish 

Copyright 2021

Why Atlantic Payroll Partners

The biggest payroll companies probably won’t have time for your business. It’s that simple, you’ll be a number. At Atlantic Payroll Partners, you’ll be the opposite. We’ll know more than your name; we’ll know the names of your children and their birthday’s as well. We will know you.

We’ve been helping Florida business by managing their payroll and providing workers' compensation quotes for ten years. We help keep payroll cost affordable by provided transparent PEO payroll quotes that allow you to plan your budget accordingly. Like the big payroll companies, you can manage your payroll and payroll timekeeping with us, while reaping the benefits of PEO risk management.

Thinking about payroll outsourcing can be scary. Make sure you know what to expect from payroll outsourcing providers; to make the best decision for your business. In addition to offering payroll, and workers' comp quote we offer: Human Resource consultations, Accounting services, and benefits such as, 401ks and Healthcare plans.

1099 vs W-2 Employees

Do you have employees or independent contractors? It’s not always an easy question to answer, but the IRS insists you get it right, because there’s a huge difference in how you should treat them. Fortunately, the IRS has some guidance.

The government recognizes five different kinds of workers:

Independent contractors. 

Those who offer their services to the general public are generally independent contractors. The general rule is that an individual is working as an independent contractor if the person who is paying him or her has the right to control or direct only the result of the work and not what is done and how it is done.

Employees.

Under common-law rules, anyone who performs services for you is your employee if you can control what they do and how they do it. This is the case even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

Statutory employees.

Some independent contractors may nevertheless be treated as employees by statute for certain employment tax purposes. The categories for statutory employees are:

  • Various delivery drivers.
  • Full-time life insurance sales agents whose principal business activity is selling life insurance or annuity contracts or both, primarily for one life insurance company.
  • Individuals who work at home on materials or goods that you supply.
  • Full-time traveling or city salespeople who work on your behalf and turn in orders to you from wholesalers, retailers, etc.

You must withhold Social Security and Medicare taxes from the wages of statutory employees if all three of the following conditions apply:

  • The service contract states or implies that substantially all the services are to be performed personally by them.
  • They do not have a substantial investment in the equipment and property used to perform the services.
  • The services are performed on a continuing basis for the same payer.

Statutory nonemployees. 

There are three categories of statutory nonemployees: direct sellers, licensed real estate agents and certain companion sitters. Direct sellers and licensed real estate agents are treated as self-employed for the purposes of all federal taxes, including income and employment taxes, if both of these conditions are met:

  • Substantially, all payments for their services as direct sellers or real estate agents are directly related to sales or other output, rather than to the number of hours worked.
  • Their services are performed under a written contract providing that they will not be treated as employees for federal tax purposes.

The IRS further advises that companion sitters who are not employees of a companion-sitting placement service are generally treated as self-employed for all federal tax purposes.

Government employees.

 These are generally treated like employees. The government entity withholds taxes and issues an annual Form W-2.

Where to draw the line

The main question is: What is the difference between an employee and an independent contractor? The government has some additional guidelines:

  1. Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
  2. Financial: Are the business aspects of the worker’s job controlled by the payer? These include things like how the worker is paid, whether expenses are reimbursed and who provides tools and supplies.
  3. Type of relationship: Are there written contracts or employee-type benefits such as a pension plan, insurance or vacation pay? Will the relationship continue, and is the work performed a key aspect of the business?

The IRS stresses that businesses must weigh all these factors when determining whether a worker is an employee or an independent contractor. Some factors may indicate that the worker is an employee, while other factors indicate that the worker is an independent contractor.

Says the IRS: “There is no ‘magic’ or set number of factors that ‘makes’ the worker an employee or an independent contractor. No one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.”

If this sounds confusing, it is! In fact, this article is just a summary — there are many additional provisions and exceptions, and new regulations or lawsuits may change the situation. If you’re bringing on a new employee and have questions about how to classify them, give us a call we’d be glad to help.

Additional IRS Info 

Why Atlantic Payroll Partners

The biggest payroll companies probably won’t have time for your business. It’s that simple, you’ll be a number. At Atlantic Payroll Partners, you’ll be the opposite. We’ll know more than your name; we’ll know the names of your children and their birthday’s as well. We will know you.

We’ve been helping Florida business by managing their payroll and providing workers' compensation quotes for ten years. We help keep payroll cost affordable by provided transparent PEO payroll quotes that allow you to plan your budget accordingly. Like the big payroll companies, you can manage your payroll and payroll timekeeping with us, while reaping the benefits of PEO risk management.

Thinking about payroll outsourcing can be scary. Make sure you know what to expect from payroll outsourcing providers; to make the best decision for your business. In addition to offering payroll, and workers' comp quote we offer: Human Resource consultations, Accounting services, and benefits such as, 401ks and Healthcare plans.