In this article, we will discuss how to pay your employees in Florida. We’ll also talk about some of the considerations you might have when doing payroll and what you need to do if you are an employer.
Payroll processing in Florida is simple, particularly if you’re familiar with federal regulations—there aren’t many state-specific rules, and workers don’t have as many rights as in other states, such as California. It also lacks a state income tax, although employers must pay state unemployment insurance taxes (SUTA) or reemployment taxes.
Regardless of how simple it is to make payroll in Florida, if you do it manually, the procedure may take a long time. Consider utilizing software like Square Payroll to save time and avoid paying IRS fines. Square, well known for its POS software, also has a separate payroll solution that is ideal for many small companies. It offers full-service payroll, computerized tax filings, and employee benefits, among other services. You may begin for free and just pay for what you use, with limitless pay runs.
Step-by-Step Instructions for Managing Payroll in Florida
Payroll in Florida is very straightforward. The fundamental procedures are outlined here, with a focus on Florida laws. Consult our page on how to conduct payroll for further information on general payroll processes.
Step 1: Register your company as an employer. You’ll need your Employer Identification Number (EIN) and an account with the Electronic Federal Tax Payment System (EFTPS) to file at the federal level (EFTPS).
Step 2: Register with the state of Florida. Fill out the DR-1 form and mail it or submit it online to a Department of Record Service Center. For assistance, see the DR-1 completion guide. To submit the paperwork and pay taxes online, enroll in e-Services.
Step 3: Create a payroll system. You have three options: do it by hand (which we don’t suggest), set up an Excel payroll template, or use a payroll service.
Step 4: Collect employee payroll paperwork. It’s simplest if you do it throughout the onboarding process. W-4, I-9, and Direct Deposit information are all included on payroll forms. There are no state-specific forms in Florida.
Step 5: Collect, evaluate, and approve timesheets. You may utilize a paper timesheet or sign up for time and attendance software that is either free or inexpensive.
Step 6: Work out your payroll and pay your workers, including taxes. Employees may be paid in a variety of methods (cash, cheque, direct deposit), and federal taxes should be sent through the EFTPS.
Step 7: Submit payroll tax returns to the federal and state agencies. For federal taxes, including unemployment, follow the IRS’s guidelines. The IRS allows you to purchase official tax forms.
Fill out Form RT-6 for Florida reemployment taxes. You must submit online if you employed ten or more workers in any calendar quarter of the previous fiscal year. You may complete it on paper if you want, but the forms must be color copies. If you have a color printer, you can print them. You have the option of paying your quarterly payment in whole or in installments for a $5 charge.
The following dates are for submitting reemployment tax reports:
Step 8: Keep track of your payroll data. It’s crucial to maintain records for all workers, even those who have been fired, for many years. More information about keeping payroll records may be found in this article. There are no extra document storage requirements in Florida, therefore follow the federal standards.
Step 9: Complete your year-end payroll tax returns. W-2 (for workers) and 1099 (for non-employees) are the government forms (for contractors.) These must be obtained by employees and contractors by January 31 of the following year. There are no extra forms in Florida.
Payroll Laws, Taxes, and Regulations in Florida
Florida respects federal rules in general. It has a corporate income tax and a somewhat higher minimum wage than other states. The most essential facts to know about Florida tax and labor regulations are included here, although additional information may be found on the Florida state website.
Taxes in Florida
Companies in Florida must pay a variety of taxes, ranging from corporate income taxes to sales taxes, but the SUTA is the sole payroll tax.
Social Security and Medicare
You must pay FICA taxes to the federal government. They account for 7.65% of the employee’s salary. You must also deduct the same amount from the employee’s take-home pay and submit it to the IRS along with your share.
Taxes on income
Personal income taxes are not levied in Florida, nor in any of its municipalities, making payroll simpler and putting more money in your workers’ wallets.
Taxes on Reemployment (SUTA)
Florida increased its minimum reemployment tax to 0.29 percent on Jan. 1, 2021, in order to replenish the trust fund for unemployment benefits.
Although Florida’s state unemployment insurance tax (SUTA) is referred to as a “reemployment tax,” it functions similarly. If you paid at least $1,500 in total wages in a calendar quarter, had at least one employee for any portion of a day in at least 20 distinct weeks in a calendar year, or are subject to FUTA, you must pay this tax. There are three distinctions:
- If you paid at least $10,000 in total compensation in a calendar quarter or had at least five workers for any portion of the same day in 20 separate weeks in a calendar year, you are responsible.
- Nonprofits: If you have four or more workers on the same day in any part of the year for at least 20 weeks.
- If you paid at least $1,000 in any calendar quarter, you are a domestic (household).
Employees of a church, single proprietors, partners, or members of an LLC, students employed by the institution they are enrolled in, insurance agents, real estate agents, commission-only barbers, and people under the age of 18 distributing newspapers are not protected.
The state deducts SUTA from an employee’s first $7,000 in earnings. The tax rate for new companies is 2.7 percent. After that, the state will determine your rate, which will range from 0.29 percent to 5.4 percent, depending on your work history.
You may be eligible for a reduction on your federal unemployment insurance taxes if you pay SUTA (FUTA). This may lower your FUTA tax rate from 6% to 0.6 percent.
Compensation for Employees
Workers’ compensation is required of every employer with four or more employees, including government agencies, employment agencies, and employee leasing businesses. Workers’ compensation insurance is required for construction workers with even one employee. There are a few exceptions:
- Workers at the home
- Agricultural labor performed by a genuine farmer who employs less than five permanent employees or 12 seasonal workers.
- Athletes on the professional level
- Inmates in state prisons or county jails
- Homeowners who hire someone to do construction work that isn’t linked to the property’s sale or leasing
Tip: Workers’ compensation insurance may be purchased for around $1.30 for $100 of payroll processed via private insurance providers.
Tips and the Minimum Wage
In addition to tips, Florida’s current minimum wage is $8.65 per hour, with a minimum of $5.63 per hour for tipped workers. It adheres to government rules on minimum wage exemptions.
Florida’s minimum wage is set to increase to $15 per hour by 2026. The Consumer Price Index for Urban Wage Earners and Clerical Workers will then be used to modify the price.
Employers in Florida may apply up to $3.02 per hour in tip credit to tip-earning workers.
Florida respects federal overtime rules but considers 10 hours of work to be a lawful day of work. You must pay overtime at federally required rates (typically time and a half) for hours worked beyond 10 in a day unless you have a documented contract saying otherwise that the employee agrees to.
Employees Can Be Paid in a Variety of Ways
Employees may be paid online, via cheque, or in cash. In place of cash, you may pay using coupons, punch-outs, tickets, tokens, or other devices as long as they are fully redeemable in the United States. Employees, on the other hand, should be allowed to get their pay without a discount. Paying using PayPal, for example, is not permitted since PayPal charges receivers a 2.9 percent transaction fee.
Pay Stub Regulations
Most workers in Florida are not covered by particular pay stub regulations. If you run a labor pool, however, you must present-day workers with an itemized account detailing the deductions taken from their pay. However, this is just excellent practice for any employee.
Minimum Pay Period
The state of Florida does not specify how frequently you must pay your workers; it simply requires that they be paid on a regular basis. You must keep to your schedule after you’ve established it and posted it. Semi-monthly paydays are the most frequent and are the most convenient for workers to pay their expenses.
Payroll Deduction Regulations
There are no regulations in Florida that define what may and cannot be taken from an employee’s paycheck. It also enables you to have workers pay for uniforms so that you may deduct the expense from their salary. The most frequent deductions are as follows:
- SUTA and taxes
- Garnishments imposed as a result of judicial proceedings
- Employee Benefits Contribution
- Reimbursement for uniforms or tools
- Compensation for damages or losses incurred as a result of an employee’s actions.
Laws Regarding Final Paychecks
There are no explicit rules in Florida that govern when and how final earnings must be paid to an employee.
HR Laws in Florida That Affect Payroll
The majority of Florida’s human resources regulations are in line with federal labor rules. However, since there are certain differences in child labor regulations, you’ll need to pay attention.
Reporting on New Hires in Florida
In Florida, you must disclose new employees within 20 days of their start date. You may report them by mailing or faxing the Florida New Hire Reporting Form to the address on the form, or reporting them online on the Department of Revenue Child Support Services for Employers website.
Requirements for breaks, lunches, and time off
Florida’s paid time off (PTO) regulations are in accordance with federal standards, which are quite lenient.
Lunches and Breaks
Every four hours, minors must take a 30-minute break. Employers in Florida are not required to offer breaks to employees aged 18 and above, but if they do, the breaks are typically 20 minutes long and must be compensated.
Sick Leave and Vacation
There are no laws requiring PTO in Florida, whether for vacation or sick leave.
Leave of Absence for Family
In the Family and Medical Leave Act, Florida follows federal law (FMLA). Businesses with 50 or more workers for at least 20 weeks in the current or preceding year are subject to this legislation. Employees who have worked for the business for at least a year and have worked 1,250 hours in the preceding year and work at a location with at least 50 employees within a 75-mile radius are eligible for FMLA leave.
Check out the Department of Labor’s guidance to FMLA for additional information on your obligations.
Disability Insurance Provided by the State
There is no state disability program in Florida, and businesses are not required to buy disability insurance. However, having both for your employees and yourself is a good idea.
Laws Concerning Child Labor
Minors aged 14 and 15 are not permitted to work during school hours under Florida or federal law, but they are permitted to work up to 15 hours per week, with no more than three hours per day on school days. Minors aged 16 and 17 may work for a total of 30 hours per week, but not during school hours. There are certain exceptions for educational purposes, but 16- and 17-year-olds in Florida are not permitted to work before 6:30 a.m. or after 11 p.m. There are exceptions if they have completed high school or work for their parents.
Forms for Payroll
The only form you’ll need is the one required by Florida for businesses to submit reemployment taxes.
Form W-4 in Florida
Personal income taxes are not collected in Florida, so that’s one less thing to worry about. There is no W-4 form for the state!
Other Withholding Forms in Florida
Forms for Federal Payroll
- W-4 Form: Used by businesses to figure out how much tax to withhold from employees’ paychecks.
- W-2 Form: This form is used to record total yearly earnings (one per employee)
- W-3 Form: This form is used to record all workers’ total pay and taxes.
- Form 940 is used to submit and compute unpaid unemployment taxes to the Internal Revenue Service (IRS).
- To submit quarterly income and FICA taxes deducted from paychecks, use Form 941.
- To report yearly income and FICA taxes taken from paychecks, use Form 944.
- 1099 Forms: Used to report non-employee compensation and assist the IRS in collecting taxes on contract employment.
Because it just has a re-employment tax and most of its HR regulations follow federal standards, Florida’s payroll is one of the simplest of all the states. Make sure to submit your taxes correctly and on time, and don’t forget about additional taxes that apply to companies.