Florida Will Require Most Employers to Use E-Verify

At a Glance

• Private Florida employers with 25 or more employees will be required to use E-Verify for new employees.
• Employers must certify their compliance annually on their unemployment return.
• Effective July 1, 2023.

Florida E-Verify Mandate

On May 10, 2023, Florida Governor Ron Desantis signed SB 1718, an immigration bill that requires the use of E-Verify by private employers with at least 25 employees. Employers must begin using the federal E-Verify system by July 1, 2023. E-Verify is a free service provided by USCIS.

Additionally, employers who are required to use E-Verify will be required to certify on their annual re-employment tax return that they are compliant with this requirement.

Employers must also retain documents used to verify employee employment eligibility for at least three years. E-Verify should not be used to verify employment authorization or identity for applicants and should only be used to verify newly hired employees within 3 days of hire. Unless an employer is subject to the FAR clause, they should not create an E-Verify case for existing employees.

How Does E-Verify Work?

E-Verify works by electronically comparing the information from an employee’s Form I-9 with records available to SSA and/or DHS to verify the identity and employment eligibility of each newly hired employee and/or employee assigned to a covered federal contract. Employers are still required to complete Form I-9 for new employees.

June 2023 Update

On June 15, 2023 the Florida Department of Revenue issued Tax Information Publication (TIP) 2373B-01 2023 Legislative Changes: E-Verify System Requirements and Florida Department of Economic Opportunity Name Change, which clarified additional information. Additionally, the agency has issued E-Verify FAQ.

Covered Employers and Employees

• A private employer is any person or entity that does business in the state, has a license issued by an agency, or employs persons to perform labor or services in the state in exchange for a salary, wages, or other renumeration.
• The term employee does not include an individual hired for casual labor that is performed entirely within a private residence, or an independent contractor as defined under federal law.
• Employees who work entirely outside of the state are not required to be verified through E-Verify.

Leased Employees

• An employee leasing company with 25 or more employees is responsible for certifying employment eligibility of any new employee.
• The employment verification may be transferred to the client company by written agreement. If the verification is transferred, the employee leasing company must continue to file reports with the Florida Department of Commerce, previously the Florida Department of Economic Opportunity. The client company must certify the use of E-Verify.
• Client companies who are required to certify the use of E-Verify will do so on their quarterly Reemployment tax return.

Certification Clarification

Agents or management companies do not have the authority to certify use of E-Verify on behalf of an employer. As an agent, Paylocity does not have the authority to certify use of E-Verify on behalf of our clients.

Agents and management companies may continue to file reports on behalf of employers, and employers will be required to separately state that they have used E-Verify.

• Employers required to certify use of E-Verify may complete this step on an Employer E-Verify Certification (Form RT-E-Verify), which can be completed online or filed on paper. Electronic and paper copies of Form RT-E-Verify should be available on the agency website by July 1, 2023.
• Starting in 2024, Employers must report their certification no later than the last day of the month following the end of the quarter when the first re-employment tax return of the calendar year is due. For most employers that due date is April 30, 2024.

Next Steps

Employers who are required to comply with the new legislation should enroll in E-Verify before July 1, 2023. Paylocity clients can choose to add E-Verify to their existing onboarding module, or can enroll with the E-Verify directly by going to the agency website.

Beginning in 2024 employers will be required to submit their certification with the agency directly.

Thank you for choosing Paylocity as your Payroll Tax and HCM partner.

This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.