Florida State Payroll Withholding Information
Running payroll in Florida (FL) is fairly straightforward although there are some factors to consider. First of all, FL does not have a state Income Tax which means that you do not need to do any state income tax withholding. The primary tax that FL companies need to deal with for payroll is the state Re-employment Tax. While Florida calls it Re-employment Tax, it functions almost identically to Unemployment Tax in other states. For the remainder of this post, we will refer to it as Unemployment tax for consistency. Finally, in addition to calculating and paying the tax, companies will need to file a return called the UCT-6.
Most companies in Florida are subject to Unemployment Tax, even ones that are typically exempt from Unemployment (UI) Tax in other states. FL taxes non-profit organizations and domestic businesses typically exempt from UI tax. FL offers reimbursement options instead of paying taxes each quarter. If your company qualifies for the reimbursement method, it could save you money; at least until someone claims unemployment.
While Florida companies are not exempt, certain types of work are exempt from UI tax. A list of exempt jobs can be found here. For example, work done by a Sole Proprietor/Partner is exempt from UI tax. Similarly, work done on a fishing boat under 10 tons is also exempt. It’s worthwhile to check and see if your specific job is exempt from UI.
If you’re subject to UI taxes and using the standard UI tax method, the FL UI rate starts at 2.7% for new companies and can range between 0.10% and 5.4% for 2024. The wage base or maximum amount of subject wages per year is $7,000. That means that only the first $7,000 is subject to tax per year, after that, you do not need to pay any more UI tax for that employee. The tax is only paid by the company, the employee does not have any money taken out from the paystub.
While payroll tax is calculated each payday, the company needs to file a return once a quarter to reconcile the information with the state. The return is called the RT-6 and it is similar to other state unemployment returns. The return contains a list of employees who received pay for the period along with their subject wages and tax calculation. There is also a return called the RT-7 which can be filed annually instead of once a quarter. However, this form is only usable by Domestic Employers.
You can file and prepare the FL RT-6 or RT-7 online and make payments electronically as well. You must have already created an FL online account in order to get your FL ID number so you can file and pay there as well.
Note: That while the payroll calculator does not track FL Unemployment tax across checks, creating an account will track the tax for you. Registering an account can make processing your FL payroll a breeze.
Get Started
