The issues are whether nine workers were employees of Respondent, during part of the audit period; whether Respondent failed to secure the payment of workers' compensation coverage in violation of Section 440.107, Florida Statutes (2003); and whether Petitioner should impose a penalty against Respondent in the amount of $123,960.23.Petitioner incorrectly included nine workers in a penalty base who were independent contractors prior to January 1, 2004, but correctly included the workers in the base after December 31, 2004.
The issues are whether Respondent materially understated payroll in violation of Section 440.107, Florida Statutes (2003), and, if so, what penalty, if any, should be imposed against Respondent; and whether Respondent's workers are not employees defined in Section 440.02, Florida Statutes.Subcontractors who were not independent contractors after October 1, 2003, and neither elected out nor paid for compensation coverage after December 12, 2003, were Respondent`s employers for which Respondent owed penalties assessed by Petitioner.
