Hey folks, I run a small design studio in Miami as an LLC (just me right now). I'm about to bring on two part-time employees. What actually changes for my LLC? Do I need a new EIN? What about workers comp? Any big surprises? I'm trying to avoid a headache.
Hiring
What happens if my Miami LLC starts hiring employees?
First thing: get a workers comp policy. Florida is strict about it once you hit 4 employees (or even 1 in construction). For two part-timers in design, you might be exempt but double-check. Also, payroll tax registration with the state
New EIN? Only if you want to. Your existing EIN works for payroll. But you'll need to register with FL DOR for reemployment tax and probably set up payroll withholding. Welcome to paperwork hell.
Thanks. So workers comp might not be mandatory for 2 part-timers? That's a relief. But what about ghe IRS? Do I need to file 941s now?
Yeah, 941 quarterly once you pay wages. Also FTP (federal tax deposit) schedule depends on how much you withhold. Get an accountant or a payroll service like Gusto. Worth every penny.
lol @ 'paperwork hell' – accurate. I hired my first employee last year and spent a whole weekend googling 'Florida new hire reporting'. It's a real thing, you have to report new hires within 20 days.
Also, don't forget to update your LLC operating agreement if it says anything about members/employees. Probably not critical but good hygiene.
And make sure you have an EIN already.If you're using your SSN for the LLC, get an EIN before hiring. You don't want employees' SSNs floating around with your personal number.
I do have an EIN. So it sounds like: payroll taxes, new hire reporting, maybe workers comp. Any other Miami-specific weirdness? Like city taxes?
Miami-Dade has a local business tax receipt but that's for you, not per employee. No city income tax in FL. You're fine there.
If you're hiring part-time, watch out for ACA rules. Under 50 employees you're not mandated, but if you offer health insurance it gets complicated. Probably not an issue for two part-timers though.
One more: unemployment tax. You pay that quarterly too. And if you ever fire someone, they can claim benefits and your rate goes up. Not Not that you plan to, but heads up.
Honestly, just hire a payroll company. They handle all the filings. You focus on design. I use Square Payroll and it's been fine.
Ha, 'fine' is doing a lot of work there. Square is okay but their support is meh. Gusto is better if you have the budget.
Everyone's arguing about payroll software but nobody mentioned that hiring employees means your LLC now has to carry workers comp even if part-time unless you're in a speciic exempt category. In FL, the exemption for part-time is narrow. Call an insurance broker, not a forum.