Article
6 min read
Comprehensive Guide to Payroll Taxes in Florida
US payroll
Author
Shannon Ongaro
Last Update
July 25, 2025
Key takeaways
- Florida is one of nine US states that do not impose an individual income tax.
- Employers in Florida must navigate unemployment insurance (UI) and workers’ compensation (WC) requirements, ensuring employees’ financial protection and safety while minimizing legal and financial risks.
- Businesses can partner with payroll service providers like Deel to streamline US payroll processes and maintain compliance with state regulations.
Florida’s low tax burden makes it a great state for businesses, especially since there is no individual income tax. However, employers still need to manage specific payroll taxes, such as unemployment insurance (UI) and workers' compensation.
This comprehensive guide will walk you through what Florida employers need to know about payroll taxes, from federal requirements to state regulations, helping you stay compliant with ease.
See also: How Do State Payroll Taxes Vary in the US? (2025 Guide)
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:
| Detail | Description |
|---|---|
| Initial Rate for New Employers | 2.7% for the first 10 quarters |
| Rate Calculation | Based on the ratio of total benefits charged to the employer's account to the taxable payroll for the first seven of the last nine quarters |
| Rate Range | 0.10% to 5.4% |
| Taxable Wage Base | First $7,000 of an employee's wages per year |
| Maximum Tax per Employee | $378 per year |
Nonprofit Organizations may be exempt from some state taxes but must meet specific criteria and are subject to re-employment 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.
Related resources: Understanding Florida Labor and Employment Laws in Florida
Deel US Payroll
Payroll taxes that Florida does not impose
Unlike many other states, Florida does not impose a state personal income tax. This means that as an employer in Florida, you are not required to withhold any state income tax from your employees’ 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.
Related resources: Social security wages
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.
Related resources: A Guide to PEO in Florida
Continuous Compliance™
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.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.
FAQs
Do Florida employees pay federal income tax?
Yes, all US employees, including those in Florida, are subject to federal income tax withholding. Employers must withhold and remit these taxes to the IRS according to federal guidelines.
Does Florida have state income tax?
No, Florida does not impose a state income tax. Employers do not need to withhold state income tax from employees’ paychecks.
What is the Florida state tax?
Florida does not have a state personal income tax. However, the state does collect reemployment (unemployment) tax from employers and sales tax on goods and services.
Who is exempt from Florida reemployment tax?
Some nonprofit organizations and certain agricultural or domestic employers may be exempt, provided they meet specific conditions. Full criteria are outlined by the Florida Department of Revenue.
Do companies pay taxes in Florida?
Yes, companies in Florida are subject to:
- Reemployment tax (state unemployment insurance)
- Corporate income tax (if applicable)
- Federal payroll taxes
- Sales and use tax (if selling taxable goods/services)
About the author
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
