Florida Senate - 2008 PROPOSED COMMITTEE SUBSTITUTE

Bill No. SB 940

225148

CM.CM.06772

Proposed Committee Substitute by the Committee on Commerce

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A bill to be entitled

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An act relating to employee leasing companies; providing a

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short title; amending s. 443.036, F.S.; amending the

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definition of the term "employee leasing company";

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amending s. 443.1216, F.S.; requiring the provision of

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quarterly reports that include client and establishment

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specific information; authorizing rules; providing

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enforcement authority; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Se Section 1. This act may be cited as the "Accurate

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Employment Statistics Enhancement Act."

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     Section 2.  Subsection (18) of section 443.036, Florida

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Statutes, is amended to read:

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     443.036  Definitions.-As used in this chapter, the term:

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     (18)  "Employee leasing company" means an employing unit

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that has a valid and active license under chapter 468 and that

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maintains the records required by s. 443.171(5) and, in addition,

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produces maintains quarterly reports, as specified in s.

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443.1216, on the clients of the employee leasing company and the

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internal staff of the employee leasing company a listing of the

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clients of the employee leasing company and of the employees,

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including their social security numbers, who have been assigned

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to work at each client company job site. Further, each client

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company job site must be identified by industry, products or

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services, and address. The client list must be provided to the

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tax collection service provider by June 30 and by December 31 of

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each year. As used in this subsection, the term "client" means a

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party who has contracted with an employee leasing company to

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provide a worker, or workers, to perform services for the client.

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Leased employees include employees subsequently placed on the

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payroll of the employee leasing company on behalf of the client.

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An employee leasing company must notify the tax collection

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service provider within 30 days after the initiation or

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termination of the company's relationship with any client company

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under chapter 468.

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     Section 3.  Paragraph (a) of subsection one of section

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443.1216, Florida Statutes, is amended to read:

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     443.1216  Employment.-Employment, as defined in s. 443.036,

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is subject to this chapter under the following conditions:

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(1)(a) The employment subject to this chapter includes a

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service performed, including a service performed in interstate

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commerce, by:

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1. An officer of a corporation.

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2. An individual who, under the usual common-law rules

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applicable in determining the employer-employee relationship, is

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an employee. However, whenever a client, as defined in s.

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443.036(18), which would otherwise be designated as an employing

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unit has contracted with an employee leasing company to supply it

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with workers, those workers are considered employees of the

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employee leasing company. An employee leasing company may lease

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corporate officers of the client to the client and other workers

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to the client, except as prohibited by regulations of the

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Internal Revenue Service. Employees of an employee leasing

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company must be reported under the employee leasing company's tax

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identification number and contribution rate for work performed

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for the employee leasing company.

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a. In addition to any other report required to be filed by

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law, an employee leasing company shall submit a report which must

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include every client establishment and each establishment of the

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employee leasing company to the Florida Agency for Workforce

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Innovation, Labor Market Statistics Center, or as otherwise

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directed by the agency, which must include the following

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information for each establishment:

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I. the trade or establishment name;

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II. the former unemployment compensation account number, if

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available;

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III. the former Federal Employment Identification Number

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(FEIN), if available;

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IV. the industry code recognized and published by the United

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States Office of Management and Budget, if available;

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V. a description of the client's primary business activity

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in order to verify or assign an industry code;

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VI. the physical location address;

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VII. the number of full-time and part-time employees who

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worked during or received pay that was subject to unemployment

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compensation taxes for the pay period including the 12th of the

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month for each month of the quarter;

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VIII. the total wages subject to unemployment compensation

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taxes paid during the calendar quarter;

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IX. an internal identification code to uniquely identify

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each establishment of each client,

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X. the month and year the client entered into contract; and

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XI. the month and year the client terminated the contract

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for services.

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b. The report shall be submitted electronically or in a

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manner otherwise prescribed by the Agency in the format specified

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by the U.S. Bureau of Labor Statistics for its Multiple Worksite

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Report for Professional Employer Organizations. The report must

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be provided quarterly to the Agency for Workforce Innovation,

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Labor Market Statistics Center, or as otherwise directed by the

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agency, and must be filed by the last day of the month

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immediately following the end of the calendar quarter. The

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information required in sub-sub-subparagraphs (1)(a)2.a.X. and

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XI. need only be provided in the quarter in which the contract to

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which it relates was entered into or terminated. The sum of the

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employment data and the sum of the wage data on this report must

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match the employment and wages reported on the unemployment

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compensation quarterly tax and wage report.

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c. The Agency for Workforce Innovation may adopt rules as

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necessary to implement the provisions of subparagraph (1)(a)2.

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and shall have the authority to administer, collect, enforce and

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waive the penalty imposed by s. 443.141(1)(b) for the report

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required by subparagraph (1)(a)2.

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d. For the purposes of (1)(a)2., the term "establishment" or

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"worksite" means any location where business is conducted or

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where services or industrial operations are performed.

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3. An individual other than an individual who is an employee

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under subparagraph 1. or subparagraph 2., who performs services

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for remuneration for any person:

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a. As an agent-driver or commission-driver engaged in

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distributing meat products, vegetable products, fruit products,

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bakery products, beverages other than milk, or laundry or

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drycleaning services for his or her principal.

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b. As a traveling or city salesperson engaged on a full-time

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basis in the solicitation on behalf of, and the transmission to,

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his or her principal of orders from wholesalers, retailers,

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contractors, or operators of hotels, restaurants , or other

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similar worksites for merchandise for resale or supplies for use

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in their business operations. This sub-subparagraph does not

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apply to an agent-driver or a commission-driver and does not

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apply to sideline not apply to an agent-driver or a commission-

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driver and does not apply to sideline sales activities performed

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on behalf of a person other than the salesperson's principal.

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4. The services described in subparagraph 3. are employment

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subject to this chapter only if:

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a. The contract of service contemplates that substantially

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all of the services are to be performed personally by the

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individual;

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b. The individual does not have a substantial investment in

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facilities used in connection with the services, other than

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facilities used for transportation; and

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c. The services are not in the nature of a single

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transaction that is not part of a continuing relationship with

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the person for whom the services are performed.

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     Section 4.  This act shall take effect October 1, 2008.

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