Florida payroll taxes: Your 2025 guide to staying compliant

Florida has one of the largest economies in the U.S. Preliminary data from the U.S. Bureau of Economic Analysis (BEA) reports that Florida's gross domestic product (GDP) during the first quarter of 2025 was $1.76 trillion. This places the state as the nation's fourth-largest economy, behind only California, Texas, and New York. With the impact of the state's major industries, including real estate, tourism, aerospace, and engineering, Florida's economy is robust and continues to grow. However, Florida business owners must understand the payroll tax laws to succeed and thrive.

This guide explores Florida's state payroll taxes, the consequences of violating the payroll tax laws, and ways to prosper while maintaining compliance.

Jump to:

• What are payroll taxes?
• Other important tax considerations
• Employer responsibilities for payroll taxes in Florida
• Filing payroll tax returns in Florida
• Common payroll tax mistakes in Florida (and how to avoid them)
• How to manage your small business payroll obligations
• Leverage payroll software for compliance in Florida

What are payroll taxes?

Payroll taxes are taxes based on wages, salaries, or other compensation that both employers and employees must pay. While income taxes are also withheld through payroll, payroll taxes specifically fund programs like Social Security, Medicare, and unemployment insurance.

Understanding Florida payroll taxes

When starting a business in Florida, you must understand and comply with both federal and state payroll tax laws.

Federal payroll taxes

Payroll taxes are mandatory and encompass both federal and state requirements.

Federal payroll taxes include:

• Federal income tax: This is withheld from each employee's paycheck based on their W-4 form and the current IRS tax brackets. You'll be responsible for calculating the correct amount, withholding it, and then sending it to the IRS.
• Social Security and Medicare taxes: Both of these taxes have a portion paid by the employee and a matching portion paid by you, the employer. For Social Security, the combined rate is 12.4% on the first $176,100 of wages in 2025. For Medicare, it's 2.9% on all wages, with an extra 0.9% for employees earning more than $200,000 a year. You'll withhold the employee's portion and match it.
• Federal Unemployment Tax (FUTA): This is paid solely by you at a rate of 6% on the first $7,000 of each employee's wages. However, most employers get a 5.4% credit, reducing the rate to 0.6%. The graphic below lists some best practices for managing your FUTA obligations.

Florida state payroll taxes

Florida business owners must pay both federal and state payroll taxes.

• Reemployment (unemployment) tax: Florida employers must pay reemployment tax assessed at rates based on experience. For the first 10 quarters, new businesses must pay 2.7% of each employee's wage base of $7,000. After 10 quarters, the employer will be deemed to have enough experience for the rate to be recalculated. The recalculated rate can range from a minimum of 0.1% ($7 per employee) to a maximum of 5.4% ($378 per employee) based on the number of unemployment claims.

Florida local payroll taxes

Unlike other states, Florida law doesn't permit local governments (counties or municipalities) to assess local income taxes. However, depending on your business type and location, you may be required to pay local business taxes. These are not payroll taxes, but they are important for overall business compliance. 

1. Check with your local government to determine your local business tax and licensing obligations.
2. Consult a tax professional if you need help understanding your local, state, or federal tax obligations or for help with maintaining compliance. Look here to find a top accountant in Florida.

Other important tax considerations

Multiple locations

If your business has employees working in multiple cities or counties, you may be subject to different business tax and licensing requirements for each location.

Changing rates

Payroll tax rates can change over time, so it's important to stay informed about any updates that may affect your business.

Employer responsibilities for payroll taxes in Florida

As a Florida employer, you're responsible for managing a range of federal and state payroll taxes. This includes accurate calculations, timely withholding, and proper reporting to government agencies. Here's what you need to know.

Registering for payroll taxes

As a new business owner in Florida, you must register with the state for payroll taxes to maintain compliance. Here's how to get started.

Before you begin: Choose the legal entity structure under which your business will operate, with the degree of liability protection you need. Once you've chosen your structure, research your intended name on the Florida Division of Corporations website and reserve it. File your articles of incorporation, and pay the fee. This step is essential for establishing your business legally and securing your business name.

Then, follow these steps to register for payroll taxes:

1. Apply for a Federal Employer Identification Number (EIN)

Apply for a Federal Employer Identification Number (EIN) from the IRS. This number is required for businesses with employees and those that plan to hire. 

2. Complete the Florida Business Tax Application (Form DR-1)

Complete Form DR-1 to register for multiple business taxes in Florida, including the reemployment tax. To do so, you can create a profile on the Florida Department of Revenue's e-Services portal and fill out and submit the DR-1. If you prefer to complete and file the form by mail, you can download it, fill it out, and mail it to the following address:

Account Management

Florida Department of Revenue

5050 W. Tennessee St.

Tallahassee, FL 32399-0160

3. Receive your business tax numbers

Once you file your business tax application, you should receive your Florida business tax number (called a Business Partner number) and reemployment number within 7 to 10 days. 

4. If applicable, register or elect nonprofit payment (for nonprofits only)

501(c)(3) nonprofits must elect their payment method as either contributing, which is quarterly and wage-based, or reimbursing, which involves reimbursing funds for individual claims. If you plan to choose reimbursement, you must complete and mail Form RT-28 once you receive your account number.

5. Enroll in e-services to file electronically

While filing electronically is not required, doing so allows businesses to get faster access to their account details and payment history. You can enroll in e-services on the Department of Revenue's website.

Calculating payroll taxes

These are your best options for calculating your payroll taxes in Florida:

• Check government websites: Each year, the Florida Department of Revenue sends a notice to businesses with their reemployment tax rate. You can also log in to the website with your EIN and reemployment tax number to see your rate. Once you have your rate, you can use it to calculate your reemployment tax based on a wage base rate of up to $7,000 per employee.
• Payroll software: Some small business software payroll programs have built-in Florida tax tables that automate calculations, saving you time and minimizing the chance of errors.
• Professional services: If you prefer to outsource payroll, a professional payroll service can handle everything for you.

Whichever method you choose, make sure to stay up-to-date with the current tax rates and wage limits, as these can change every year.

Withholding state payroll taxes

After you've calculated the taxes to withhold, you'll need to withhold them from your employees’ wages and remit them to the appropriate authorities. Follow Florida's guidelines for withholding and payment timelines to avoid penalties.

• Reemployment tax: Employers are responsible for paying the reemployment tax in Florida. In 2025, the wage base per employee is the first $7,000 an employee earns. For 2025, the taxable wage base is the first $7,000 of each employee's earnings. New employers pay a standard rate of 2.7% for their first 10 quarters. Afterward, rates are adjusted annually based on the employer's experience and can range from 0.1% to 5.4%.

For example, if you're a new employer with 10 employees who each earn $60,000 annually, you'd pay 2.7% of the first $7,000 of wages per employee—$189 each—for a total of $1,890. If your rate later adjusts to 0.1%, your tax would drop to $7 per employee. Conversely, a maximum rate of 5.4% would increase your liability to $378 per employee, or $3,780 total. ​

By applying these calculations to each paycheck, you ensure accurate withholding and compliance with state requirements.

Remitting state payroll taxes

In Florida, you must file quarterly reemployment tax reports and pay them on the last day of the month following the end of each quarter. The state Department of Revenue encourages you to file online.

Florida doesn't have a state income tax, paid family leave, or any other mandatory state payroll tax. However, you must comply with your federal withholding obligations and pay your reemployment and corporate income tax in Florida.

Filing payroll tax returns in Florida

Florida businesses must comply with both state and federal payroll tax filing requirements. Here's a summary of the state's quarterly filing expectations for 2025:

Quarterly requirements