The Complete State Of Florida Payroll & Payroll Taxes Guide

Florida payroll is simpler than payroll in many states because Florida doesn’t have state or local income tax withholding. However, employers still need to handle federal payroll taxes, Florida reemployment tax, new-hire reporting, wage and hour rules, and payroll records.

This guide breaks down the Florida payroll taxes and labor laws small business owners need to know.

Federal & State Payroll Taxes In Florida

Florida payroll is simpler than payroll in many states because Florida does not have state or local income tax withholding. However, Florida employers still need to handle federal payroll taxes, Florida reemployment tax, and required deductions such as garnishments, child support, or employee-authorized benefit contributions.

Note that Florida businesses may also be responsible for other taxes, such as sales tax, use tax, or property tax, but those are separate from payroll taxes.

Florida’s Tax Exclusions & Exemptions

Florida does not have state or local income tax, so employers do not need to withhold Florida income tax from employee wages.

However, Florida employers may still be responsible for reemployment tax, which is paid by employers and cannot be deducted from employee wages. Reemployment tax generally applies to the first $7,000 paid to each employee in a calendar year.

Some employers or workers may have special reemployment tax treatment depending on the type of organization, employment relationship, or exemption involved. Businesses should check the Florida Department of Revenue guidance before assuming wages are exempt. Florida notes that wages are generally taxable unless a specific exemption applies.

Florida businesses may also deal with other taxes, such as sales, use, or property taxes, but those are separate from payroll taxes.

Florida’s Labor Laws & Other HR Requirements

In addition to payroll taxes, Florida employers need to follow state and federal labor laws covering minimum wage, overtime, new-hire reporting, child labor, workers’ compensation, payroll deductions, and recordkeeping.

How To Calculate Payroll Taxes In Florida

Once you understand Florida’s payroll taxes and labor rules, running payroll comes down to collecting employee information, calculating gross pay, withholding federal taxes, paying employer taxes, processing payments, and keeping accurate records.

Step 1: Review Florida Payroll & Labor Laws

Florida does not have state or local income tax withholding, but employers still need to follow federal payroll tax rules, Florida reemployment tax requirements, new-hire reporting rules, workers’ compensation requirements, minimum wage laws, overtime rules, and payroll recordkeeping requirements.

Step 2: Gather Employee Payroll Documents

Before running payroll, collect the forms and information needed to pay employees correctly, including:

• Form W-4 for federal income tax withholding
• Form I-9 to verify employment eligibility
• Direct deposit information, if applicable
• Employee pay rate, pay schedule, classification, and deduction information

Step 3: Calculate Gross Pay

Calculate each employee’s gross pay based on their pay type. For hourly employees, multiply hours worked by the hourly rate and include overtime when required. For salaried employees, divide the annual salary by the number of pay periods.

Be sure to include tips, commissions, bonuses, PTO, sick leave, reimbursements, and other taxable compensation when applicable.

Check out our complete guide on how to calculate payroll if you need more help.

Step 4: Calculate Taxes & Deductions

Florida employers must withhold federal income tax based on each employee’s Form W-4.

Employers and employees also pay FICA taxes. Social Security tax is 6.2% for both employer and employee up to the annual wage base, and Medicare tax is 1.45% for both employer and employee, with no wage cap. Employers must also withhold the 0.9% Additional Medicare Tax from employee wages over $200,000.

Florida reemployment tax is paid by the employer, not deducted from employee wages. Employers may also need to subtract required or employee-authorized deductions, such as benefit contributions, retirement contributions, wage garnishments, child support, or other approved deductions.

Learn more about small business payroll deductions in our complete guide.

Step 5: Pay Employees

After calculating gross pay, taxes, deductions, and net pay, pay employees using an approved payment method, such as direct deposit, paper check, or another allowed method.

Payroll software can help automate wage calculations, tax withholding, paydays, and payroll reports.

Step 6: Keep Payroll Records

Keep payroll records organized and secure. Records should include employee names, Social Security numbers, addresses, pay rates, hours worked, pay periods, payment dates, deductions, and tax records.

The IRS generally requires employment tax records to be kept for at least four years. FLSA payroll records should generally be kept for at least three years, while wage calculation records, such as timecards and work schedules, should generally be kept for at least two years.

Learn exactly which payroll records you need to keep and for how long.

State Of Florida Payroll Resources

Florida payroll is simpler than payroll in many states, but employers still need to keep up with federal payroll taxes, Florida reemployment tax, minimum wage updates, new-hire reporting, workers’ compensation rules, and payroll recordkeeping requirements.

For official guidance, use the Florida Department of Revenue for reemployment tax and employer registration, the Florida New Hire Reporting Center for new-hire reporting, and the Florida Department of Commerce or Florida Department of Revenue for state wage and employer tax guidance.

For workers’ compensation, use the Florida Division of Workers’ Compensation.

For federal payroll rules, use the IRS for federal withholding, FICA, FUTA, and employer tax filing guidance, and the U.S. Department of Labor for FLSA wage, overtime, and recordkeeping rules.