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In Florida, there is a general rule that a contractor may not be held liable for the negligence of its independent contractor. As a contractor, you're responsible for fulfilling the contract.The City may enforce the provisions of this Section 7 as though it were a party to this Subcontract. You must complete a W-2 form for each employee. For independent contractors: Employers do not have to worry about the above tax issues for employees. Florida Law (Chapter 337. If the individual or company does not finish the work but has already received payment, it is possible to use this action as a violation of the contract.