A newly licensed employee leasing company (ELC) has 30 days from the date of licensure by the Department of Business and Professional Regulation to make an election with the Department of Revenue to report and pay reemployment tax using the tax rate for each client. This is called the client method. The tax rate used will be based upon the wage and benefit history the client has earned under the ELC. If the client has no wage and benefit history under the ELC, the client will have the initial rate of .0270. A separate reemployment tax account number will be assigned by the Department of Revenue under the FEIN of the ELC for each client company.
This one-time election by an ELC is binding on all current and future clients. A newly licensed ELC that does not timely notify the Department in writing of its election to use the client method must report all leased and internal employees under its own reemployment tax account number and tax rate.
An ELC that chooses the client method must first register with the Department of Revenue and get a reemployment tax (RT) account number. Each client company must also have a separate RT account number.
If a new ELC chooses to elect the client method, the ELC must register with the Department of Revenue within 30 days of licensure. The fastest way is to register online. The online application will guide you through an interactive interview. Once the Department has issued an RT Account number, the ELC can make the client method election online.
Once the ELC has registered and elected the client method (whether online or by paper), the ELC will then be able to enter (key or import) each client company's information online.
The import file specification must include:
Employee information will only be required if the current ELC states that some or all of the client companies were previously reported by another ELC that had common ownership, management or control with the current ELC at the time of the transfer.
A tax rate will be calculated for each client company. The ELC must use the calculated rate to electronically file and pay a separate Employer's Quarterly Report (RT-6) for each client company. An initial tax rate of 2.7% will be assigned to client companies for whom the ELC has filed fewer than eight (8) chargeable quarters (generally it is 10 filing quarters), until an earned rate can be calculated. However, if the client company transferred from a related ELC, the mandatory transfer of experience provisions would apply according to section 443.131(3)(g), Florida Statutes. The ELC will continue to file its own Employer's Quarterly Report for its internal employees using the tax rate assigned.
An employee leasing company must notify the Department of Revenue within 30 days after the initiation or termination of the company’s relationship with a client company. ELCs should use the ELC website to add client companies and the Client Company Change Form (RTS-11) to terminate a client company. ELCs who have chosen the client method should use the ELC website to both add and terminate client companies.