Payroll tax in Florida: What employers need to know [Updated 2024]

When they’re looking for a place to set up shop, many business owners opt for Florida. Not only does the beautiful weather ensure the Sunshine State lives up to its name, but Florida is known for having one of the lowest tax burdens in the United States. And, it has the unique distinction of being one of the few states that doesn’t levy a personal income tax.

Despite its low rates, paying business taxes in the state of Florida can become very confusing extremely quickly. On top of federal income taxes, like Medicare tax and Social Security tax, Florida employers are also responsible for state payroll taxes. To ensure you don’t wind up getting audited, it’s crucial to understand the applicable laws and remain in compliance.

Whether you run a small business or a global enterprise, if you have employees who live in the state of Florida, you have to understand the different types of taxes you’ll pay, their rates, and the payment deadlines. In this guide, we’ll address these subjects and more.

Unemployment Insurance Tax in Florida

The Florida Department of Revenue (FLDOR) administers payroll taxes at the state level. Employers are responsible for deducting Social Security tax, Medicare tax, and federal and state unemployment taxes from employees’ paychecks. Here’s a breakdown of what you need to know:

• New owners who recently took over a company may use the previous owner’s tax rate if they are also comfortable with being responsible for any outstanding amounts the latter did not pay.
• New employers are required to pay reemployment tax—Florida’s term for unemployment tax—at a rate of 2.7% until they have been in business for 10 quarters. After that, a new tax rate will be determined by dividing the total benefits charged to the employer’s account by the taxable payroll reported for the first seven of the last nine quarters immediately before the quarter in which the rate will be effective. The tax rate can range from 0.10% to 5.4% per employee.

In the state of Florida, the payroll tax rate is only applied to the first $7,000 an employee makes. Any earnings above that aren’t taxable under Florida state law.

Under the Federal Unemployment Tax Act (FUTA), Florida employers typically must also pay a federal unemployment tax in addition to state unemployment insurance tax.

Navigating payroll tax laws can be overwhelming, even in Florida, despite its seeming simplicity. Rippling’s payroll compliance software makes it easy to remain in compliance with state and federal laws. Rippling automatically calculates your employment taxes and submits your tax forms and payments on your behalf—monitoring the tax laws at the federal and Florida state levels to ensure total compliance. Rippling’s PEO goes further: It can register and maintain your state tax accounts for you, automating even more of the payroll tax process.

Payroll tax due dates in Florida

Florida businesses with 10 or more employees must file an Employer’s Quarterly Report (Form RT-6) with the Florida Department of Revenue each quarter. The form is due on the first day of the month after the end of each quarter unless that month ends on a weekend or a federal holiday. Then, the due date is extended to the close of business on the following working day.

• First quarter (January-March): Due April 30
• Second quarter (April-June): Due July 31
• Third quarter (July-September): Due October 31
• Fourth quarter (October-December): Due January 31

You have two options when you deposit payroll taxes in Florida: You can either pay the entire amount you owe quarterly or, for a $5 fee, you can pay in installments. And you must pay on time: the FLDOR charges $25 every 30 days a payment is late, and it also can charge interest on late payments.

How to submit payroll taxes in Florida

So, now you know what you’re responsible for in terms of payroll taxes in Florida, and you know when to make your payments. But how do employers actually submit payroll taxes in the Sunshine State? We’ll go over the tax filing options below.

Enroll in the Reemployment Tax Website

The Florida Department of Revenue offers a secure online portal to help employers manage their payroll taxes called the Reemployment Tax Website. All you need to do is enroll by following the instructions on the FLDOR site.

Use an FLDOR-Approved Software Vendor

The FLDOR also maintains a list of approved software vendors for employers who wish to e-file their taxes. You can find that list here.

The Florida Department of Revenue actively discourages employers from submitting payroll tax forms by mail and requires most to file electronically. It charges a fee if you try to send things in by snail mail. So, your best bet is to stick with one of the above two payment options.

Rippling’s full-service payroll software

Looking for an even easier payment option? Rippling’s payroll software is so powerful, it practically runs itself. Rippling automates all your compliance work and files your federal payroll taxes and Florida state payroll taxes at the right time and with the IRS, the FLDOR, and any other agencies.

FAQs about Florida payroll taxes

Do Florida employers need to deduct income tax from payroll?

No. Florida is one of the few states that does not levy a personal income tax, so employers don’t need to worry about deducting it from employees’ paychecks.

Do Florida employers need to deduct state disability insurance from employees’ pay?

No, Florida does not mandate employers deduct state disability insurance (DSI) from employee wages.

Are there local tax laws in Florida?

No—the state of Florida does not permit its municipalities to charge a local income tax.

Can your tax returns be audited in Florida?

Yes. The Florida Department of Revenue can audit all your state tax returns, including payroll tax, state income tax, and others, to ensure you reported and paid the right amounts.

What is Florida’s reemployment tax?

“Reemployment tax” is the state of Florida’s term for unemployment tax. The name changed back in 2012.

Are nonprofit organizations subject to payroll taxes in Florida?

There isn’t exactly a straightforward answer to this question. In the state of Florida, nonprofit organizations may be exempt from some state taxes but still have to pay others. The eligibility criteria for exemption differ depending on which kind of tax you’re talking about. For instance, a nonprofit is exempt from having to pay reemployment tax unless it employs four or more workers for any amount of time in a day for 20 calendar weeks during the current or prior calendar year. This organization would still have to pay Florida’s sales and use tax and corporate income tax, though, unless it qualified for an exemption under separate criteria.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for, tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.