If any Florida-based business employs at least four employees, workers’ compensation coverage is required by law; however, the requirements are even stricter for construction businesses. In fact, contractors are required to make certain their subcontractors are covered or else they will legally be held responsible for paying for any work-related injuries that occur if any of the subcontractor’s employees are hurt on the job.
Not only do contractor s need to be mindful of shady subcontractors, they also need to avoid being issued a stop-work order in Florida. In this two-part article, we will first discuss why employers should avoid misclassifying their employees and then detail the importance of partnering with a reliable payroll service. In the second part, a stop-work order attorney in Florida will provide you with some more tips that can help businesses avoid being issued a stop-work order.
1) Avoid Independent Contractor Pitfalls
The most common mistake an employer makes related to employment law is that they misclassify their employees. More specifically, they consider some employees to be independent contractors when they shouldn’t be classified this way. There are tax advantages and a significant reduction in expenses when you don’t have to foot the bill to insure these workers; however, there are also legal requirements that need to be met in order to make certain that a worker can be classified as an independent contractor.
If a worker is classified incorrectly, this can result in serious fines that the employer has to pay. Consult an attorney to learn more about the differences between an independent contractor and a full-time employee.
2) Employ Reliable Payroll Services
If there’s one area that employers should never cut corners, it’s performing their own payroll tasks. Payroll processing can be time-consuming and create a great deal of stress for a small business owner. For large businesses, the process can be nearly impossible to track. It’s best to utilize a reputable payroll service that can manage the required financial aspects of your business. This way, the business owner doesn’t need to spend time calculating deductions and considering other tax implications. It’s also important to consider that during an investigation, if you can’t access or provide relevant financial records related to the investigation, this will result in an even more significant fine.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.