Business Licenses & Permits

Employer Requirements

You’re almost there! The final step in setting up your business is to determine the federal and state employer requirements.

Federal Requirements

• Tax withholdings: View the IRS Employer’s Tax Guide for full requirements.
• Tax records: The IRS requires businesses to retain records of employment taxes for at least 4 years. Learn more about the types of records small businesses are required to keep.
• Employee Eligibility Verification (Form I-9): Federal law requires employers to verify the employment eligibility for all employees hired after November 6, 1986. You can download Form I-9 and learn more about the process in the Instructions for Completing the I-9; Handbook for Employers. Proof of an employee’s eligibility to work must be obtained within 3 days of hire. This must be completed for citizens and non-citizens. For help navigating the I-9 form for non-citizens, you can consult the Small Business Guide to Immigration Regulations.
• Federal Income Tax Withholding (Form W-4): The W-4 form, which outlines tax withholdings, must be completed by every employee prior to or on their start dates. As the employer, you are responsible for submitting the W-4 to the IRS for verification.
• Federal Wage and Tax Statement (Form W-2): Employers are required to report annual tax withholdings for each employee to the IRS. This is done using the W-2 form, which must be completed annually for each employee by January 31 for the preceding year. Copy A must be sent to the Social Security Administration (SSA). For full instructions on what you need to do, you can view the SSA’s Employer W-2 Filing Instructions and Information.
• Form W-9: If you do business with a freelancer or independent third party, you must obtain a W-9. This is used for third parties who are responsible for filing their own taxes with the IRS.

State Requirements for Florida

• New Hire Reporting: New hires must be reported with the Florida Department of Revenue.
• Posters Required by Law
• Workers’ Compensation Insurance: Businesses with employees are also responsible for worker’s compensation insurance.
• Layoff Notice Requirements (plant closings and mass layoffs)
• Farm Labor Contract Registration—Compliance and Enforcement 

Additional Resources for Small Businesses in Florida

• Drug-free Workplace: In Florida, employers are eligible to participate in the Drug-Free Workplace program. Participants are eligible to receive up to a 5% premium credit on a qualified program.