US State Tax Summeries-2

Your Ultimate Guide to US Payroll in Florida

Managing payroll in Florida? Read our state-by-state guide to US payroll taxes to learn what you must withhold and deduct from employee wages.

Shannon Hodgen
Written by Shannon Hodgen
August 4, 2023
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Key takeaways

  1. Florida is one of nine US states that do not impose an individual income tax.
  2. 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.
  3. Businesses can partner with payroll service providers like Deel to streamline US payroll processes and maintain compliance with state regulations.

Employers have to navigate a variety of regulations and requirements to ensure proper payroll withholding in each US state. This guide serves as an introduction to what employers need to pay and withhold from payroll in Florida, including unemployment insurance, personal income tax, and workers’ compensation. 

Paying unemployment insurance (UI)

Unemployment insurance, known as reemployment assistance in Florida, is a crucial aspect of payroll withholding for employers. This program, overseen by the US Department of Labor, provides temporary financial assistance to individuals who are unemployed through no fault of their own. As an employer in Florida, you are responsible for contributing to this program on behalf of your employees.

Reemployment assistance payments are made by employers to support the unemployed workforce. Florida employers can manage their reemployment assistance obligations through an online portal for convenience and efficiency. The Florida Department of Revenue offers additional information on how to pay your unemployment insurance and fulfill your responsibilities in this regard.

Withholding personal income tax in Florida

Florida stands out among the states due to its tax policy on personal income. 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 the payroll processes, especially if you have operations in multiple states with varying tax regulations.

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 is in compliance with the state’s requirements to protect their business and their employees effectively.

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.

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