Florida Employee Retention Credit: State COVID Orders & Eligibility
Florida ERC eligibility guide covering Governor DeSantis COVID-19 executive orders and documentation requirements for IRS audit defense.
Florida businesses operated under a unique COVID-19 regulatory framework that differed significantly from other large states. Governor Ron DeSantis issued initial closure orders in March 2020 but moved to Phase 3 reopening by September 2020, earlier than most states.
Florida COVID-19 Executive Order Timeline
Governor DeSantis declared a public health emergency on March 1, 2020. The statewide stay-at-home order (EO 20-91) took effect April 1, 2020. Phase 3 reopening (EO 20-244) on September 25, 2020 opened all businesses and prohibited local government restrictions.
- EO 20-68 (March 17, 2020): Closed bars and nightclubs; limited restaurants to 50% capacity
- EO 20-91 (April 1, 2020): Statewide stay-at-home order closing non-essential businesses
- EO 20-244 (September 25, 2020): Phase 3 order opening all businesses statewide
Warning: Florida's Phase 3 order (September 25, 2020) preempted local government restrictions. ERC claims for Q4 2020 and 2021 face significant challenges.
Regional Variations: South Florida
Miami-Dade, Broward, and Palm Beach counties faced longer and stricter restrictions than the rest of Florida until state preemption.
- Miami-Dade County: Extended closures and beach restrictions; excluded from Phase 1 until June 2020
- Broward County: Similar restrictions to Miami-Dade with delayed reopening
- Palm Beach County: Enhanced restrictions and delayed reopening compared to other Florida regions
Tip: South Florida businesses may have stronger ERC claims for Q2 2020 due to extended local restrictions.
Florida ERC Documentation
Florida's early reopening creates unique challenges for ERC audit defense.
- Executive Order Documentation: Copies of applicable executive orders with relevant provisions highlighted
- Timeline Verification: Clear documentation showing which restrictions were in effect during each week of claimed quarters
- Gross Receipts Records: For Q4 2020 and later claims, comparative gross receipts data showing significant decline
Key Takeaways
- Florida's primary COVID restrictions were in effect from March through September 2020
- South Florida counties faced extended restrictions but were subject to state preemption after September 2020
- ERC claims for Q4 2020 and 2021 in Florida typically require the gross receipts test
Frequently Asked Questions
Does Florida's early reopening disqualify my business from ERC?
Not necessarily, but it limits which eligibility test you can use. For Q4 2020 and 2021, most Florida businesses must rely on the gross receipts test.
Can South Florida businesses claim ERC based on local county orders?
For periods before September 25, 2020, yes. After that, Governor DeSantis's Phase 3 order preempted local restrictions.
Can Florida cruise industry businesses claim ERC for 2021?
Potentially, based on federal CDC no-sail orders rather than Florida state orders.
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