Florida Senate - 2020                        COMMITTEE AMENDMENT
       Bill No. SB 1356
       
       
       
       
       
       
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                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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       The Committee on Commerce and Tourism (Bean) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 73 - 216
    4  and insert:
    5  contributions at the initial rate of 2.7 percent. For tax rates
    6  effective on or after January 1, 2021, if the client company’s
    7  employment record is chargeable with benefits for less than 8
    8  calendar quarters while being a client of the employee leasing
    9  company, the client company must pay contributions at the
   10  initial rate of 1.0 percent. However, the tax collection service
   11  provider may not adjust the initial rate for any year in which
   12  the balance in the Unemployment Compensation Trust Fund requires
   13  the computation of a positive adjustment factor under s.
   14  443.131(3)(e)2.a.(III); and
   15         (D) The wage data and benefit charges for the prior 3 state
   16  fiscal years that cannot be associated with a client company
   17  must be reported and charged to the employee leasing company.
   18         (III) Subsequent to choosing the client method, the
   19  employee leasing company may not change its reporting method.
   20         (IV) The employee leasing company shall file a Florida
   21  Department of Revenue Employer’s Quarterly Report for each
   22  client company by approved electronic means, and pay all
   23  contributions by approved electronic means.
   24         (V) For the purposes of calculating experience rates when
   25  the client method is chosen, each client’s own benefit charges
   26  and wage data experience while with the employee leasing company
   27  determines each client’s tax rate where the client has been a
   28  client of the employee leasing company for at least 8 calendar
   29  quarters before the election. The client company shall continue
   30  to report the nonleased employees under its tax rate.
   31         (VI) The election is binding on each client of the employee
   32  leasing company for as long as a written agreement is in effect
   33  between the client and the employee leasing company pursuant to
   34  s. 468.525(3)(a). If the relationship between the employee
   35  leasing company and the client terminates, the client retains
   36  the wage and benefit history experienced under the employee
   37  leasing company.
   38         (VII) Notwithstanding which election method the employee
   39  leasing company chooses, the applicable client company is an
   40  employing unit for purposes of s. 443.071. The employee leasing
   41  company or any of its officers or agents are liable for any
   42  violation of s. 443.071 engaged in by such persons or entities.
   43  The applicable client company or any of its officers or agents
   44  are liable for any violation of s. 443.071 engaged in by such
   45  persons or entities. The employee leasing company or its
   46  applicable client company is not liable for any violation of s.
   47  443.071 engaged in by the other party or by the other party’s
   48  officers or agents.
   49         (VIII) If an employee leasing company fails to select the
   50  client method of reporting not later than July 1, 2012, the
   51  entity is required to report under the employee leasing
   52  company’s tax identification number and contribution rate.
   53         (IX) After an employee leasing company is licensed pursuant
   54  to part XI of chapter 468, each newly licensed entity has 30
   55  days after the date the license is granted to notify the tax
   56  collection service provider in writing of their selection of the
   57  client method. A newly licensed employee leasing company that
   58  fails to timely select reporting pursuant to the client method
   59  of reporting must report under the employee leasing company’s
   60  tax identification number and contribution rate.
   61         (X) Irrespective of the election, each transfer of trade or
   62  business, including workforce, or a portion thereof, between
   63  employee leasing companies is subject to the provisions of s.
   64  443.131(3)(g) if, at the time of the transfer, there is common
   65  ownership, management, or control between the entities.
   66         b. In addition to any other report required to be filed by
   67  law, an employee leasing company shall submit a report to the
   68  Labor Market Statistics Center within the Department of Economic
   69  Opportunity which includes each client establishment and each
   70  establishment of the leasing company, or as otherwise directed
   71  by the department. The report must include the following
   72  information for each establishment:
   73         (I) The trade or establishment name;
   74         (II) The former reemployment assistance account number, if
   75  available;
   76         (III) The former federal employer’s identification number,
   77  if available;
   78         (IV) The industry code recognized and published by the
   79  United States Office of Management and Budget, if available;
   80         (V) A description of the client’s primary business activity
   81  in order to verify or assign an industry code;
   82         (VI) The address of the physical location;
   83         (VII) The number of full-time and part-time employees who
   84  worked during, or received pay that was subject to reemployment
   85  assistance taxes for, the pay period including the 12th of the
   86  month for each month of the quarter;
   87         (VIII) The total wages subject to reemployment assistance
   88  taxes paid during the calendar quarter;
   89         (IX) An internal identification code to uniquely identify
   90  each establishment of each client;
   91         (X) The month and year that the client entered into the
   92  contract for services; and
   93         (XI) The month and year that the client terminated the
   94  contract for services.
   95         c. The report must be submitted electronically or in a
   96  manner otherwise prescribed by the Department of Economic
   97  Opportunity in the format specified by the Bureau of Labor
   98  Statistics of the United States Department of Labor for its
   99  Multiple Worksite Report for Professional Employer
  100  Organizations. The report must be provided quarterly to the
  101  Labor Market Statistics Center within the department, or as
  102  otherwise directed by the department, and must be filed by the
  103  last day of the month immediately after the end of the calendar
  104  quarter. The information required in sub-sub-subparagraphs b.(X)
  105  and (XI) need be provided only in the quarter in which the
  106  contract to which it relates was entered into or terminated. The
  107  sum of the employment data and the sum of the wage data in this
  108  report must match the employment and wages reported in the
  109  reemployment assistance quarterly tax and wage report.
  110         d. The department shall adopt rules as necessary to
  111  administer this subparagraph, and may administer, collect,
  112  enforce, and waive the penalty imposed by s. 443.141(1)(b) for
  113  the report required by this subparagraph.
  114         e. For the purposes of this subparagraph, the term
  115  “establishment” means any location where business is conducted
  116  or where services or industrial operations are performed.
  117         3. An individual other than an individual who is an
  118  employee under subparagraph 1. or subparagraph 2., who performs
  119  services for remuneration for any person:
  120         a. As an agent-driver or commission-driver engaged in
  121  distributing meat products, vegetable products, fruit products,
  122  bakery products, beverages other than milk, or laundry or
  123  drycleaning services for his or her principal.
  124         b. As a traveling or city salesperson engaged on a full
  125  time basis in the solicitation on behalf of, and the
  126  transmission to, his or her principal of orders from
  127  wholesalers, retailers, contractors, or operators of hotels,
  128  restaurants, or other similar establishments for merchandise for
  129  resale or supplies for use in the business operations. This sub
  130  subparagraph does not apply to an agent-driver or a commission
  131  driver and does not apply to sideline sales activities performed
  132  on behalf of a person other than the salesperson’s principal.
  133         4. The services described in subparagraph 3. are employment
  134  subject to this chapter only if:
  135         a. The contract of service contemplates that substantially
  136  all of the services are to be performed personally by the
  137  individual;
  138         b. The individual does not have a substantial investment in
  139  facilities used in connection with the services, other than
  140  facilities used for transportation; and
  141         c. The services are not in the nature of a single
  142  transaction that is not part of a continuing relationship with
  143  the person for whom the services are performed.
  144         Section 2. Paragraph (a) of subsection (2) of section
  145  443.131, Florida Statutes, is amended to read:
  146         443.131 Contributions.—
  147         (2) CONTRIBUTION RATES.—Each employer must pay
  148  contributions equal to the following percentages of wages paid
  149  by him or her for employment:
  150         (a) Initial rate.—Each employer whose employment record is
  151  chargeable with benefits for less than 8 calendar quarters shall
  152  pay contributions at the initial rate of 2.7 percent. For tax
  153  rates effective on or after
  154  
  155  ================= T I T L E  A M E N D M E N T ================
  156  And the title is amended as follows:
  157         Delete line 4
  158  and insert:
  159         revising the initial rate that certain client