Comprehensive Guide to Payroll Taxes in Florida

Florida is recognized for its low tax burden, notably the absence of a personal income tax, which simplifies payroll processing for employers. However, understanding the regulations and requirements of specific state and federal payroll taxes in Florida is crucial for compliance.

In Florida, employers are primarily responsible for federal income taxes and specific state payroll taxes. The FLDOR can audit all state tax returns, including payroll taxes, to ensure accuracy. This blog article provides a detailed overview of payroll taxes in Florida, what employers need to pay and withhold, including unemployment insurance (UI) tax and the Federal Unemployment Tax Act (FUTA).

Paying unemployment insurance (UI)

Unemployment insurance (UI), known as reemployment assistance in Florida since 2012, is a state payroll tax that provides temporary financial assistance to eligible individuals who are unemployed through no fault of their own. The program is overseen by the US Department of Labor.

As an employer in Florida, you are responsible for contributing reemployment assistance payments to this program on behalf of your employees. You can manage your reemployment assistance obligations through a convenient, efficient online portal.

Florida employers need to be aware of the following details:

Nonprofit Organizations may be exempt from some state taxes but must meet specific criteria and are subject to reemployment tax if they employ four or more workers for 20 weeks. The Florida Department of Revenue provides further guidance for employers on fulfilling unemployment insurance obligations.

Federal Unemployment Tax Act (FUTA)

Florida employers must also contribute to the federal unemployment tax which enhances the support system for workers who lose their jobs. Employers with 10 or more employees must file an Employer's Quarterly Report (Form RT-6) each quarter.

Payments can be made in full quarterly or in installments for a $5 fee. Late payments incur a $25 fee every 30 days, plus possible interest charges. The quarterly due dates are April 30, July 31, October 31, and January 31, and the deadline is extended to the next business day if it falls on a weekend or holiday.

Paying Florida workers’ compensation

In addition to handling payroll taxes and unemployment insurance, Florida employers must also provide workers’ compensation coverage to their employees. Workers’ compensation is a form of insurance that ensures employees receive compensation and medical benefits in case of workplace injuries or illnesses. This coverage is essential for protecting employees and employers in case of unfortunate events.

Workers’ compensation is mandatory whether you have just one employee in Florida or a larger workforce. As an employer, you need to purchase workers’ compensation insurance from a qualified commercial carrier within the state. Florida provides resources to help you find a qualified commercial carrier that meets the state’s workers’ compensation coverage regulations. 

Employers should verify that their workers’ compensation insurance complies with the state’s requirements to safeguard their business and their employees.

Payroll taxes that Florida does not impose

Unlike many other states, Florida does not impose a personal income tax. This means that as an employer in Florida, you are not required to withhold any personal income tax from your employee’s paychecks. This can simplify your payroll processes, especially if you have operations across multiple states with varying tax regulations.

Florida does not have State Disability Insurance, so employers are not required to deduct this from employees' wages. Florida also does not allow municipalities to charge a local income tax.

How to Submit Payroll Taxes

The Florida Department of Revenue (FLDOR) provides a secure online portal for managing payroll taxes. Employers can enroll via the FLDOR site and use approved software vendors to e-file taxes. Electronic filing is mandatory for most employers, while mailing forms is discouraged and incurs a fee.

Simplify US payroll tax compliance with Deel

While this introductory guide serves as a helpful starting point for payroll taxes in Florida, there are other rules and regulations to remain compliant. At Deel, we help companies navigate these requirements with our convenient US payroll solution. 

Request a demo and see how we help Florida employers streamline US payroll processes and ensure compliance with state regulations.