Florida Payroll Tax Guide 2023: Laws, Taxes, and more

How a payroll is set up will differ by business and industry. The main decisions are:

• Payment method (direct deposit or paper check)
• Pay periods (weekly, bi-weekly, semi-monthly, or monthly)

To learn more about managing your company's payroll in-house or with a service, click here.

During onboarding, all new employees need to submit the following documents to confirm their eligibility to work in the US and to be compliant with state and federal employment regulations:

• W-4 – Employee’s Withholding Certificate, for federal tax purposes
• I-9 – Employment Eligibility Form
• Disability self-identification form (for businesses that work with government entities)
• Direct Deposit Authorization (if applicable)

As Florida doesn't have a separate W-4 form, you can use the standard federal W-4 form to collect your employees' tax information.

Note: All employees must complete their I-9 verification no later than their first day of work. I-9 forms must be stored for three years after the hire date, one year after employment ends, or whichever is later.

Established by the federal government under IRC section 3121(a), the Federal Insurance Contributions Act (FICA) requires all businesses to deduct federal taxes from employees' wages. Unlike individual taxes, FICA is paid by both the employer and employee, typically at 7.65% of taxable wages to the IRS. 

Unless specifically excluded by statute, all forms of payment (cash, check, deposit, etc.) are considered taxable. The same rule applies to types of base pay, such as hourly, weekly, piecework, and more.

While nearly all forms of payment are included in FICA's policies, the following types of compensation are exempt:

• Wages paid after an employee’s death
• Wages paid to disabled employees who collect Social Security disability insurance benefits
• Expense reimbursements for driven mileage
• Retirement contributions by employer

The Social Security Administration establishes the maximum taxable wage for FICA each year. For 2023, this amount is $160,200, which is an increase of 13,200 from $147,000 in 2021.

The reemployment tax is a payroll tax dedicated to funding the state's Unemployment Compensation Trust Fund, which provides temporary financial assistance through reemployment assistance benefits to eligible claimants.

Typically ordered on the state level, the federal government can administer unemployment insurance during periods of crisis, such as the COVID-19 pandemic. Similar to other taxes, all businesses contribute to funding unemployment insurance through their tax contributions.

In Florida, an employer is liable to pay reemployment tax if it meets any of the following conditions:

• At least one quarterly payroll totaling $1,500 or more (including wages for both full and part-time employees) in a calendar year.
• One or more employees for a day (or portion of a day) during any 20 weeks in a calendar year.
• Nonprofit organization as defined in Section 3306(c)(8) of the Federal Unemployment Tax Act and Section 501(c)(3) of the Internal Revenue Code and four or more employees for a day (or portion of a day) during any 20 weeks in a calendar year.
• An agricultural employer with five or more workers for a day (or portion of a day) during any 20 weeks in a calendar year or a $10,000 cash payroll in any calendar quarter.
• Private home or college club that paid $1,000 cash in a quarter for domestic services in a calendar year.
• All or part of a liable business purchased or the combination of existing payroll/employment, and that of the business purchased meets the liability criteria.
• Liable for federal unemployment tax.
• Previously liable for reemployment tax in the State of Florida.
• State, county, city, or joint governmental unit.
• An Indian tribe or tribal unit.

The initial tax rate for new employers is .0270 (2.7%), which is applied to the first $7,000 in wages paid to each employee during a calendar year. Any amount over $7,000 for the year is excess wages and is not subject to tax. For more information about the tax rate, review the Reemployment Tax Rate Information webpage.

Note: employers must post a notice regarding state unemployment claims in a shared space for all employees to see. The poster (Form RT-83), also available in Spanish (Form RT-83SP), provides basic information on filing an unemployment claim and the benefits available.

On September 30, 2022, Florida's minimum wage increased to $11.00 from $10, which is more than the federal minimum wage of $7.25. In November 2020, voters decided to raise the minimum wage gradually through 2026 to $15 an hour. The Florida minimum wage will increase to $12 in September of 2023. Each year will see a $1 increase until 2026, when the minimum wage will reach $15.

In addition to the minimum wage described above, the Federal Fair Labor Standards act defines special minimum wage rates applicable to certain types of workers. You may be paid under the Florida minimum wage if you fit into one of the following categories:

• Florida Under 20 Minimum Wage - $4.25 - Federal law allows any employer in Florida to pay a new employee who is under 20 years of age a training wage of $4.25 per hour for the first 90 days of employment.
• Florida Student Minimum Wage - $9.35 - Full-time high school or college students who work part-time may be paid 85% of the Florida minimum wage (as little as $9.35 per hour) for up to 20 hours of work per week at certain employers (such as work-study programs at universities).
• Florida Tipped Minimum Wage - Employees who earn a certain amount of monthly tips may be paid a lower cash minimum wage ($7.98 per hour) but must earn at least $11.00, including tips every hour.

There are no current local minimum wage laws in Florida. However, in 2018, Miami Beach commissioners wanted to boost the city's minimum wage to $13.31 an hour by 2021. In 2019, two courts ruled against the city, and the state Supreme Court decided not to hear the case. Therefore, at this time, there is no local minimum wage law in effect.

The state of Florida doesn't have any laws regulating when or how often an employer must pay employees their wages.

Thus, employers have the freedom to set their own payment schemes.

Here are the most common pay frequency schemes:

• Weekly — Employees are paid once a week (52 paychecks per year)
• Biweekly — Employees are paid every other week (26 paychecks per year)
• Semi-monthly — Employees are paid twice a month (24 paychecks per year)
• Monthly — Employees are paid once a month (12 paychecks per year)

Regardless of frequency, pay dates must be consistent. Payment can be made via cash, check, direct deposit, or a payroll card account.

Florida doesn't have laws specifically regulating how overtime pay is calculated or paid. Instead, the federal standard applies throughout the state. Therefore, all nonexempt Florida employees must be paid one-and-a-half times their regular pay rate for any time worked past 40 hours in a workweek.

An important thing to know is who doesn't qualify for overtime pay. The state follows federal regulations on defining four very vague categories: professional, executive, computer employees, administrative employees, and outside sales. The Department of Labor (DOL) has a duties test that can help employers determine who meets these exemption criteria.

Another important thing to note is that you're not automatically exempt from overtime pay if you're a “salaried" employee. According to federal law, to stipulate that salaried employees who still qualify for overtime pay must:

• Receive less than $684 per week
• Receive less than $35,568 per year
• Receive less than $1,043 per week for employees in the motion picture industry
• Make under $107,432 per year for “highly-compensated employees”.

Note: Highly-compensated employees own more than 5% of a company, and the $107,432 limit can be achieved through a weekly salary (at or above the $684 minimum) along with commissions, bonuses, and other compensation outside of their weekly base pay.

In 1998, state and federal laws were passed requiring employers to report certain information about newly hired and rehired employees. For Florida employers, these reports are sent to the Florida New Hire Reporting Center (NHRC) with the Florida Department of Revenue.

In Florida, employers must submit new hire reports within 20 days after an employee is hired, rehired, or returns to work. If you have multiple new hires in a month and are submitting electronic files, these files must be submitted in two monthly transmissions, not more than sixteen days apart. In general, any employee that fills a W-4 should be reported. To be specific, employers must report the following types of new hires:

• Full-time employees
• Part-time employees
• Temporary (seasonal) employees
• Any employee returning to work who has been off the payroll for 60 consecutive days or more within the same company due to:
• Lay-off
• Furlough
• Medical leave
• Leave of absence
• Separation from work

How to Report New Hires

The Florida New Hire Reporting Center offers several options that make it easy for employers to report new hires. The options available are:

Electronic Reporting 

Register with the Florida Child Support Services for Employers and follow the instruction on their website to report new hires online, or:

Create Your Own Electronic New Hire Reports

Learn more about detailed instructions and electronic data transmission methods for creating electronic new hire reports.

Non-Electronic Reporting

Printed List

If you are unable to export new hire information in electronic format, you can create a printed list containing your new hire data. The printed list should contain all the required information on the new hire reporting form and have the employer's name, Federal Employer Identification Number (FEIN), and address clearly displayed at the top of the report. 

New Hire Reporting Form

You may download, print, fill out, and fax or mail us a new hire reporting form,  W-4 Form. If you submit a W-4 form as a new hire report, please ensure that each W-4 is easily readable and has the employer's name, Federal Employer Identification Number (FEIN), and address written at the top of each form.

Paper new hire reports may either be faxed or mailed at the following:

Mail reports to:

Florida New Hire Reporting Center
P.O. Box 6500
Tallahassee, FL 32314-6500

Fax reports to:

(850) 656-0528
Toll-free: (888) 854-4762

Other Reporting Methods

Payroll Service

If you use a payroll or accounting service, consider asking the service provider to report your new hires. Leading payroll services report new hires electronically for thousands of employers.

Required Information for New Hire Reports

Per Federal legislation, the State of Florida requires the following information to be reported:

• The employer’s Federal Employer Identification Number (FEIN). If the employer has more than one FEIN, use the same one used to report quarterly wage information
• The employer’s name
• The employer’s address
• The employer’s phone number (optional)
• The employer’s email address (optional)
• Medical insurance availability (optional)
• The employee’s name (full name: first, middle and last)
• The employee’s address
• The employee’s Social Security Number
• The employee’s date of hire
• The employee’s date of birth (optional)

Employers do not have to provide paid time off in Florida under state or federal law unless the employee was granted that right in a contract or employment policy. If employees are entitled to paid time off, failure to pay them as indicated in the contract or policy will constitute a breach of contract.

Employers can develop vacation leave policies that work best for their business and employees. Many employers offer paid time off to attract and retain quality employees and ensure that workers can take leave when needed.

Even if an employee gets PTO, no Florida state law requires private employers to pay out accrued paid time off when an employee leaves the job unless there is a contract or policy to the contrary. However, 24 states across the country have PTO laws that require the payment of accrued paid time off upon termination, which means there is a chance it may change for Florida in the future. Employers in Florida are also free to institute a "Use-It-or-Lose-It" policy, implying that PTO time can be forfeited if not used within a certain period of time.

Like in every state, employers in Florida are required to provide certain types of leave under federal, state, and local laws. For example, under the Family Medical Leave Act (FMLA), Florida employers with 50 or more employees are required to provide up to 12 weeks of unpaid leave for certain family and medical reasons, such as the birth or adoption of a child, or the care of a family member with a severe medical condition.

Federal FMLA Rights

According to the Family and Medical Leave Act, all employees in the US are entitled to 12 weeks of unpaid, job-protected leave for certain family and medical reasons, such as serious injury or illness, to care for ailing family members, to prepare for a family member's military service, or to care for newborns or newly adopted children.

Employees are eligible for FMLA-related leave if:

• They have worked at least 1,250 hours during the previous work
• They work at a location with at least 50 employees (within a 75-mile radius)
• They have worked at the company for at least one year

Employees who use FMLA leave are entitled to continue their health insurance while on leave, as well as are entitled for reinstatement upon return. 

Florida Family and Medical Leave Laws

In addition to the federal FMLA and the leave provided by your employer's discretionary policies on vacation time, sick leave, personal days, or paid time off (PTO), you may have a legal right to take time off work for specific reasons under federal and Florida laws.

Florida Domestic Violence Leave

In Florida, employers with at least 50 workers must allow eligible employees to take three days in a 12-month period as victims of domestic or sexual violence. Employees are also eligible for leave if a family member is a victim of domestic or sexual violence. Job protection requirements apply. 

An employer must provide leave for a variety of activities connected with domestic violence issues: 

• seeking a protective injunction against domestic violence
• receiving medical care or mental health counseling 
• receiving protection from victims' service organizations such as victims' rights groups, rape crisis centers, or shelter
• making the employee's home safe from the perpetrator of domestic violence or moving to a new location to avoid the perpetrator 
• seeking legal counsel to address issues related to domestic violence, or attending or preparing for court proceedings related to the act of domestic violence. 

An employee must have worked for the employer for three months or longer to be eligible for this leave, and this time off may be paid or unpaid at the employer's discretion. Employers must keep confidential and exempt from disclosure of all the information related to leave for domestic violence. Under this law, employees must provide advance notice of the need for leave unless prevented because of the danger to the health and safety of the employee or a family member.

Military Family Leave

According to the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), private employers must provide military leave to employees who have been called to active duty or are a reserve component of the Armed Forces.

In addition to USERRA, Florida law provides additional protections to Florida employees who are members of the U.S. armed forces, the National Guard, reserves, commissioned corps of the public health service, and any other category of a person called by the president in a time of war or emergency.

Employees who are not covered by COBRA (The Consolidated Omnibus Budget Reconciliation Act) and whose employment is terminated while on active duty are entitled to a new 18-month benefit period starting when active duty or their employment ends, whichever comes later. 

After serving in the National Guard, the employee has the right to return to work with the same seniority, rights, and benefits as if they had not taken military leave. The employer may not fire the employee without cause for one year. 

Employers with 15 or more employees must provide up to 15 days of unpaid leave to Civil Air Patrol members. 

Public employees have the right to paid leave for up to 30 days without losing benefits, vacation, leave time, or efficiency rating. 

Jury Duty and Voting

Florida law gives employees the right to take unpaid time off work, without fear of retaliation, for the civic responsibility of serving on a jury. Florida law prohibits any employer from preventing a person from serving as a juror. Employees are provided job protection during their leave and may not be discharged or penalized. As proof of the requirement, employees must give their employer a copy of the jury summons.

While this time off is unpaid, special rules apply to exempt employees. Under federal law, employers typically cannot deduct an exempt, salaried employee's pay for time spent serving on a jury unless the employee did no work for the entire week.

Although most states also have laws that protect an employee's right to take time off work to vote, many of which require paid time off, Florida is not among them. It does, however, prohibit employers from firing or threatening to fire an employee for voting or not voting in an election, for a specific candidate, or a specific ballot measure. Voting leave is unpaid. 

Florida Bereavement Leave (Funeral leave)

Bereavement leave is an employee's leave due to another individual's death, usually a family member.

No federal or Florida law requires an employer to provide employees with paid or unpaid bereavement leave or any time off to attend an immediate family member's funeral. In case an employer decides to provide bereavement leave for employees, they may be required to follow a bereavement policy they have in place. 

Neither the state of Florida nor the federal government has laws requiring private employers to provide paid sick leave for their employees. As a result, employers can establish their paid sick leave policies and offer them as a benefit.

There's no state payout policy on Florida sick leave laws. Private companies may offer it as additional compensation; however, some state employees can use sick leave for:

• Illness
• Disability
• Birth
• Adoption
• Doctors' visits

Employees can use sick leave to treat illness, injury, or care for family members, and Florida employers may request a doctor's note for absences lasting longer than three days within 30 days. After ten days, the employee must seek medical verification.

Child labor laws on Florida and federal levels exist to prevent the exploitation of minors for labor and ensure that education is prioritized over work. Limitations on child labor vary by age and may include restrictions on the types of work that can be done, maximum hours that may be worked, and limitations on late or overnight work.

While some states require working minors to provide their employers with an age certification document, this is not required for minors who wish to work in Florida, where employment or age certificates are not required to hire minors. However, any minor's employers must obtain and record proof of the child's age. An age certificate issued by the district school board is one method of meeting the proof of age requirement.

Minors authorized to work in Florida are subject to restrictions on when they can work and how many hours they can work. The exact restrictions in effect depend on the age of the minor:

Minors Under 16: 8 hours of work per day, 40 per week, up to 6 days per week are permitted when school is out. 

During a school day, only 3 hours are permitted when followed by another school day, except if enrolled in a vocational program. Up to 15 hours can be worked in a school week.

Minors Ages 16 and 17: 8 hours of work per day, 30 hours per week, up to 6 days per week are permitted during the school year.

Nightwork Restrictions for Minors 

Minors Under 16: Work is prohibited during these hours: 7 p.m. before the school day to 7 a.m. on a school day (9 p.m. during holidays and summer vacations to 7 a.m.)

Minors Ages 16 and 17: Work is prohibited during these hours: 11 p.m. to 6:30 a.m., before the school day.

Below is a list of relevant forms for the state of Florida. For a comprehensive list, click here. For information on filing W-2 and 1099 forms, click here.

Below is a list of the most common requested federal payroll tax forms. For a comprehensive list, click here.

Wages must be reported each calendar quarter. Electronic filing of wage data saves time and paperwork for most employers. An Employer's Quarterly Report (Form RT-6) is due the 1st day of the month following the end of each calendar quarter and is late if not postmarked by the last day of the month. However, if the last day of the month is a Saturday, Sunday, or legal holiday, the timely filing period is extended until the end of the next working day.