NEW FILING REQUIREMENT FOR SMALL BUSINESSES

A new federal law most small businesses have never heard of requires a new “ownership” disclosure that must be reported to the federal government by the end of this year. This new filing requirement is part of the Corporate Transparency Act, a federal law approved in 2021 to combat money laundering.

What is the new filing requirement? It’s called a Beneficial Ownership Information (BOI) report.

Who is required to file this new report? Businesses with 20 or fewer full-time employees and less than $5 million in gross receipts.

Are there any exceptions to the filing requirement? Sole proprietors do not have to file this report. There are some other exceptions for banks and insurance companies.

What information must be reported? Small businesses must report the “beneficial owners” of the company. A beneficial owner is everyone who either: 

  • owns at least 25% of the company or
  • has “substantial control” of the company

A person has “substantial control” of a company if they:

  • are a senior officer of the company,
  • can appoint or remove company’s officers,
  • are an important decision maker at the company, or
  • have any other form of substantial control over the company.

For small businesses owned by one person, the actual owner of the company will be the same person who has substantial control of the company. In that case, the company has only one beneficial owner and only that one person needs to be reported.

For each beneficial owner of the company, four pieces of personal information must be reported:

  • Name
  • Residential address
  • Date of birth
  • Driver’s license number or passport number

A copy of the driver’s license or passport must also be uploaded when the report is filed.

When is the filing deadline? For businesses formed in 2023 or earlier, the deadline is January 1, 2025. Businesses formed during calendar year 2024 must file the report within 90 days of their creation. Businesses formed after January 1, 2025 must file within 30 days of their creation.

Where is the report filed? The report must be filed online with the Financial Crimes Enforcement Network (FinCEN) at boiefiling.fincen.gov. FinCEN is a division of the US Department of Treasury.

There are two ways to file: (1) online by filling out the information directly on the FinCEN website or (2) filling out a PDF form and uploading it to the site. We recommend the online filing method rather than the PDF method.

A step-by-step instruction guide is available from the FinCEN website at boiefiling.fincen.gov/help.
A detailed compliance guide is available at fincen.gov/boi/small-entity-compliance-guide.

FUBA is offering a free online seminar on filing the BOI report at 11:00 am ET on Wednesday, November 20th. FUBA General Counsel Karen Phillips will walk members through filing a BOI report online and will be available to answer questions from members.

The seminar is open to current FUBA members and workers’ comp insurance policyholders. If you would like to participate, email us at fuba@fuba.org so we can verify your membership and reserve your spot. FUBA members can also call our offices at 800-262-4483.

HOLIDAY PAY QUESTIONS

With Thanksgiving and Christmas falling on typical workdays this year, here are some common pay questions from employers:

If my business is open on a holiday like Thanksgiving or Christmas, do I have to pay my employees extra for working on a holiday? No. Extra pay or holiday pay is not required in Florida.

If my business is closed for a holiday, do I have to pay my employees? It depends on the employee’s status. Employees that are exempt from overtime must be paid even for days when the business is closed. All other employees do not have to be paid when they’re not working, even if they are salaried.

Do I have to pay overtime in a week with a holiday? All hourly employees and most salaried employees must be paid overtime if they work more than 40 hours in a workweek. But days when the business is closed (like Christmas Day) do not count towards the 40 hours. Overtime is calculated only on the hours the employee actually works. Hours where the employee is paid but does not work (like a paid holiday) do not count towards the 40 hours.

For example, if your business is closed for Thanksgiving Day, that day does not count as time worked. Your employees can work up to 40 hours the other days of the workweek without getting overtime. This is true even if you pay your employees for a full day on Thanksgiving while the business is closed.

FUBA members with questions about holiday pay can call our offices at 800-262-4483.

INSURANCE POLICIES IN FLORIDA PROTECTED FROM CANCELLATION

Due to Hurricanes Helene and Milton, the state of Florida is protecting insurance policies from cancellation until December 10th in the following counties: Alachua, Brevard, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Dixie, Duval, Flagler, Franklin, Gadsden, Gilchrist, Glades, Gulf, Hamilton, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Jefferson, Lafayette, Lake, Lee, Leon, Levy, Liberty, Madison, Manatee, Marion, Martin, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Taylor, Volusia, and Wakulla.

Insurance policies in these 52 counties must be kept active by the insurance company, even if the policyholder is not current on premium payments. The protection applies to most types of insurance like workers’ comp, general liability, health insurance, property insurance, and auto insurance.