E-Verify
New Florida Mandatory E-Verify Payroll Requirement Starts July 1, 2023

Starting July 1st, 2023, many Florida businesses will need to process new employees in payroll thru the E-Verify system to check if the new hire is qualified...

 

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Freedom Group website – https://freedomgroupfl.com/

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This video is intended for education purposes and should not be taken as legal, financial or tax advice. You should consult with a professional about your unique situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. are providing educational content to help small business owners and individuals become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc., Freedom Insurance Financial Inc., Freedom Realty Source Inc., and Freedom Immigration International Inc. or its members cannot be held liable for any use or misuse of this content.

Transcription:

From Freedom Group. We are a group of four companies that provide services in accounting, taxes, immigration, real estate, insurance, financial planning, tax planning. We can basically help you in many ways. In this video, we’re going to talk about the new Florida requirement for many small businesses. We’re talking about the E-Verify requirement for some businesses in Florida that have employees in payroll. And to talk about this topic, I’m going to bring my co worker, Danny Martinez. Hello Danny, how are you?

Very well, very well. How are you?

Good, good. Danny is our expert in everything related to payroll here at Freedom Tax Accounting. So Danny, tell me, what’s going on in Florida with the new EVerify requirement for many businesses that have employees in payroll?

Well, this is actually something that’s not necessarily new, but it is being enforced right now in Florida, and that’s what we’re here to talk about.

Okay. Basically, what is the E-Verify system and why is the state of Florida implementing it for some small businesses in Florida?

Well, E-Verify is basically just a free web based service that allows employers to verify the employment eligibility of any new hires. They can do this electronically, obviously, and it is done against Social Security Administration and Department of Homeland Security records.

Okay. And the reason they’re doing this is because they’re cracking down on illegal immigration in Florida?

Not just in Florida, but we’ll talk… You’re correct. Not just in Florida, but we’ll talk about that a little.

Further on. Perfect. And is this E-Verify system only being enforced in Florida?

Well, E-Verify, right now with Florida, nine states that are actually enforcing it. We’re talking Alabama, Arizona, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Utah are also states that are en for it. We’re talking as early as 2007 when Arizona actually was the first one to enforce it.

Okay. Now Florida, and there is talk about there may be other states in the future to implement the ERA system as well.

Correct. Right now, Massachusetts will be the 10th, but they’re only enforcing it for state agencies. State agencies are required to go through E-Verify for any and all new hires.

Because we know that not every business in Florida needs to now use the E-Verify system, what businesses in Florida need to now go through the E-Verify system when they hire new employees?

You are correct. Even though it is advised that every business participate, it is mandatory, basically, for businesses that have 25 employees or more.

Okay. So if your business has 24 or under, you don’t have to do it, but it is recommended that you do it.

Correct.

So basically now, any employer in Florida that has 25 or more employees in payroll, and it’s for new hires, what about the people that already have in payroll now? Do they need to go through E-Verify?

Same rule of thumb applies. It is not mandatory, but it is advised that they do it. It is recommended.

Okay. So businesses in Florida have 25 or more employees when they hire. Now they need to go to the E-Verify system and basically check their immigration status. If they’re eligible to work or if they have a work permit in the US, basically. Because if they don’t have a work permit, they’re not allowed to work in the US based on their immigration status.

That is correct.

Okay, very good. Now, this process of businesses having to now go through E-Verify before hiring people, is this something that is done by the payroll companies, or do the business owners need to create an account with E-Verify? How does that work?

There are several types of enrollment for this. Obviously, the most basic one is employer needs to get enrolled and employer needs to themselves go through the process of verifying their employees. You asked if payroll companies are going to be doing this. Right now, in the future, there’s a chance payroll companies can do this through what they’re calling the… I have it written here, web services account. When you are a software developer, perhaps a payroll provider, you can open a Web Services account to develop software that can actually help that company handle all of this for their employers, for their clients. Now, there’s also an alternative that accounting firms such as us can have the opportunity to enroll as. And that is actually… I have the name written down here because this is very, very new and we just enrolled in it. It is called an employer agent account. As early as yesterday, we actually ended up getting that certification as an employer agent account where we can actually have our own profile within the E verify website and we can enroll our clients, number one. Number two, once the client gets a new employee, they pass along the information, photo IDs, Form I9, Form W4, Social Security card, IMAGE, and we can actually then run the employee through the system and get verified in as quick as five minutes.

Basically, right now, a lot of payroll companies like ADP, they’ve been telling us that they’re not doing it directly for the clients, businesses that go through ADP or paychecks, they’re asking the business owner to create the account themselves. But as of now, we just got certified yesterday that now if businesses do payroll through us, then we can register them in the E V erify system and we can do that for them, for our payroll clients.

Correct. And as part of the service that we provide, the employee verification through E-Verify will be included.

Perfect. Now, if small businesses or businesses don’t comply with doing this now, E-Verification system, what are the consequences?

Well, if the employer fails to implement this method three times in a 24 month period, the penalty will be, and I have it written down here because I didn’t want to forget, $1,000 per day until the employer can provide proof that the matter is resolved. And after that, and it doesn’t stay there. After that, they will be on a one year probation.

Wow. So they can basically lose their business license if.

They don’t comply. They’re not careful enough.

Okay, perfect. So now you know. Basically now, if you have us as businesses in Florida that has 25 or more employees, you are required when you have a new employee, you need to go through the E-Verify system to check basically that new hire immigration status to see if they are eligible to work in the United States. If you don’t, you may encounter penalties and even your business license may be basically taken away. Here at Freedom Tax Accounting, we do provide payroll service. As part of this new basically payroll set up, we will register your business in the E-Verify. And as part of our service, we run the new employee through the E-Verify system for you as well. So we make sure that you’re compliant and you’re following all the rules so your business doesn’t get in trouble with the state of Florida. Okay? So thank you for watching this video. If you have received valuable information, like it and share it with another business owners that can take advantage of this information. Remember to subscribe to our channel.

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#everify #payroll #floridapayroll #floridaeverify #floridabusiness

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