An Employer Identification Number (EIN), also called a Federal Tax Identification Number, identifies a business entity for business tax purposes. You will likely need an EIN to open a business bank account, for identification purposes when applying for state and local licenses, for filing income tax forms and federal payroll/employment tax forms, and for identification purposes when filing electronic returns using the Electronic Federal Tax Filing System (EFTPS).
You can apply for your EIN through the Internal Revenue Service (IRS). The following criteria must be met for eligibility:
The IRS requires businesses to maintain records of employment taxes for at least four years. Keeping good records can also help you monitor the progress of your business, prepare financial statements, identify sources of receipts, keep track of deductible expenses, prepare your tax returns, and support items reported on tax returns.
Here are some important considerations for businesses that have employees:
Workers’ compensation is a type of insurance purchased by an employer that provide benefits to its employees if a job-related injury occurs. Florida law requires all employers to purchase workers’ compensation insurance.
The Florida Department of Finance, Division of Workers’ Compensation provides comprehensive information, documents, requirements, and laws relating to worker’s compensation insurance. This is your best resource for this information.
All employers are required to report newly hired, re-hired or temporary employees to the Florida Department of Revenue (DOR) within 20 days of their hire or rehire date. Visit the DOR New Hire Reporting Center for more information and to report your employees as they are hired. You must already have obtained your Employer EIN to create your online account.
In addition to requirements for keeping payroll records of your employees for tax purposes, certain federal employment laws also require you to keep employee records. The following list indicates what these records are and which governing agency has jurisdiction over those records:
There is a lot to consider when hiring employees, but by following these steps (and checking with a legal professional), you can establish a process that helps populate your team with the best employees to represent you and your business.