In June, Florida Governor Rick DeSantis signed a Bill into law that requires businesses to submit new hire information to the state’s Department of Revenue. The law will go into effect on October 1, 2022, and will require businesses that pay an independent contractor $600 or more in the year, to submit new hire information for that contractor within 20 days following their payment or entry of contract, whichever is earlier. A state regulation of independent contractors is not something that many businesses have had to face, which is why it’s a significant and could be a burden. Although this bill is a state law, this could mean that changes to Texas law, regarding business-contractor relationships, could be coming.

What Does This Law Mean for Texas Business Owners?

As of right now, Texas law is not changing how businesses report independent contract work. However, it’s very common that when a state begins making changes to the law, that other states will begin to adopt those changes as well. If Texas were to follow in the footsteps of Florida, business owners could be sent into a scramble while trying to understand how to protect themselves. Here are a few key takeaways from the new law that Florida signed:

  • Businesses should review their relationships with independent contractors and how they may be required to reports those relationships under the new law.
  • Business should confirm that they are complying with the law if they are using payroll or accounting services for new hires.
  • Businesses should update onboarding and reporting policies within the company to further ensure that they are complying with the new law.
  • Businesses should consider auditing their worker classifications ensure that independent contractors are classified correctly.

Although there is currently no implication that Texas will adopt this new law, it’s important to be aware and be prepared in case the law is passed unexpectedly. These takeaways are a good common practice so that you don’t have to scramble to ensure you’re in compliance. If you’re looking for help to ensure that your properly prepared for these changes to your independent contractor relationships, contact BFG Tax Help today. Our highly knowledgeable and skilled team can help you prepare for the unexpected and ensure you’re complying with the law.

Why BFG Tax Help?

At BFG Tax Help, we do more than file taxes. We help you plan for your financial future and business’s success with our tax planning services. Many professional tax services can help you prepare your taxes, but can they give you fresh and creative ways to save on your return? BFG Tax Help knows how to help you win with the IRS by getting the most savings possible. As business owners ourselves, we know how frustrating it can be to overpay on taxes and we can help ensure that you don’t overpay with our tax planning experts.

BFG Tax Help provides accounting, tax preparation and bookkeeping services in Richardson, Texas. Whether you’re an established business, or just getting started, our team will help you ensure your financial success. Call us today to start planning your business’s financial future.