Form Rt-800058 - What Employers Need To Know About Reemployment Tax (Page 2 of 6) in pdf

A liable employer must display the poster To Employees (RT-83) where all employees can see

it. Posters are also available in Spanish (RT-83SP).

Voluntary Coverage

An employer that is not required to pay reemployment tax may elect to voluntarily provide

reemployment coverage for its workers. To apply for voluntary coverage, complete and submit

the voluntary Election to Become an Employer Under the Florida Reemployment Assistance

Program Law (RTS-2) available on our website.

Definitions

• Employment - Any service done by an employee for the employer.

• Employee - A person who is subject to the will and control of the employer as to what

must be done and how it is done.

• Casual Labor - Work that is not in the course of the employer’s regular trade or business

and which is occasional, incidental, or irregular. Do not confuse casual labor with temporary

or part-time employment. A corporation cannot have casual labor.

• Independent Contractor - A person not subject to the will and control of the employer. The

employer does not control or direct the manner or method of job performance. The general

public is aware that the person is an independent contractor.

• Officers of a Corporation - Any officer of a corporation performing services for the

corporation is an employee of the corporation during tenure of office, even when no

compensation is received for such services. Compensation, other than dividends upon

shares of stock and board of director fees, is presumed to be payment for services

performed.

• Limited Liability Company (LLC) – A limited liability company is treated the same as it is

classified for federal income tax purposes. A person performing services for an LLC,

treated as a corporation for federal income tax purposes, is an employee. A person, other

than a partner or exempt employee of a partnership, performing services for an LLC treated

as a partnership for federal income tax purposes, is an employee. A person, other than the

sole proprietor or an exempt employee of a sole proprietorship, performing services for an

LLC, treated as a sole proprietorship for federal income tax purposes, is an employee. A

single member LLC may be treated as a corporation or a sole proprietorship for federal

income tax purposes.

• S Corporation - Salaries paid to corporate officers are considered wages. All or part of the

distribution of income paid to corporate officers who are active in the business and are

performing services for the business can be considered wages.

• Employee Leasing Company - An employee leasing company is an employing unit that

has a valid and active license under Chapter 468, Florida Statutes (F.S.).

• Salesperson - Any individual paid solely by commission under your direction and control is

an employee. The law provides exemption for insurance agents, real estate agents, and

barbers who are paid solely by commission. If they are paid by salary only or salary and

commission, both are taxable and subject to reemployment tax. There is no federal

unemployment tax exemption for barbers paid solely by commission.

• Agricultural Labor - Any service performed on a farm in the employ of the owner, tenant,

or any other operator of a farm in connection with the production or harvesting of any

agricultural or horticultural commodity or in connection with the maintenance or operation of

farm equipment or grounds.

Florida Department of Revenue, What Employers Need to Know about Reemployment Tax, Page 2

Form Rt-800058 - What Employers Need To Know About Reemployment Tax Page 2

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