Florida payroll laws 2025: Updates, rules, resources, and employer tips

Payroll laws form the foundation of how businesses compensate their employees. In Florida, that foundation is relatively straightforward, but that doesn’t mean employers are off the hook. While the state doesn’t have a separate income tax or set many wage and hour rules, businesses must still navigate important responsibilities like reemployment tax, accurate employee classification, and timely wage payments. And federal laws still apply.

This 2025 guide outlines key Florida payroll laws, where they differ from federal requirements, and the taxes and employer obligations you need to know. It also highlights tips, tools, and payroll services to help you stay compliant.

Jump to:

• What are payroll laws?
• Why are payroll laws important?
• What do payroll laws cover?
• Who must follow Florida payroll laws?
• New payroll laws to know in 2025
• Federal payroll laws every employer should know
• Key Florida payroll laws
• Florida payroll taxes
• Florida payroll compliance requirements
• Consequences of non-compliance
• Common payroll mistakes (and how to avoid them)
• Payroll resources for Florida employers
• Simplify payroll law compliance for your Florida business

What are payroll laws?

Payroll laws are regulations that govern how employers compensate employees. They include rules about wages, tax withholdings, overtime pay, recordkeeping, and employee classification at both federal and state levels.

Why are payroll laws important?

Payroll laws help protect workers’ rights and ensure businesses meet their legal responsibilities. Following these laws reduces the risk of fines, lawsuits, and payroll errors that can affect employee trust and company operations.

What do payroll laws cover?

Payroll laws outline how employees must be paid, how taxes are withheld and reported, and what rights and responsibilities both parties have. In Florida, this includes:

• Ensuring workers are paid in a timely and accurate manner for all hours worked, including commissions and bonuses.
• Establishing guidelines for wage deductions, recordkeeping, and minimum wage enforcement.
• Complying with federal tax withholding rules and Florida-specific unemployment tax requirements.
• Clarifying responsibilities for final pay, sick leave policies, and Florida holiday pay law under applicable federal or company guidelines.
• Protecting workers’ rights through anti-retaliation laws and fair labor practices.

When businesses follow these laws, they avoid penalties and build a stronger, more compliant workplace.

Who must follow Florida payroll laws?

Whether you own a beachside café, manage a construction crew, or operate a corporate branch, Florida payroll laws apply the moment you hire your first employee and begin paying wages. These laws are designed to protect workers and ensure employers meet their responsibilities, regardless of industry or business size.

Here’s who’s required to comply:

• Any business with employees working in Florida, including corporations, limited liability companies, partnerships, sole proprietors, and nonprofits, that meets certain wage thresholds.
• Employers who pay at least $1,500 in wages in a calendar quarter or employ one or more workers for at least 20 weeks in a calendar year.
• Household employers who pay $1,000 or more in cash wages to domestic workers in a calendar quarter.
• Agricultural employers who pay $20,000 or more in wages during any calendar quarter or employ 10 or more workers on any 20 days during the year.

In short, if you have employees in Florida and meet the wage or headcount thresholds, you must comply with Florida payroll laws, covering everything from wage payments and tax reporting to final pay and employment records.

New payroll laws to know in 2025 

The following are some of the key 2025 updates to Florida payroll laws:

• Minimum wage increase: The Florida minimum wage for nontipped employees will rise to $14 per hour on September 30, 2025, with tipped employees’ base wage increasing to $10.98 per hour at the same time.
• Annual wage schedule continues: Following Amendment 2 (2020), the wage increases by $1 per year until $15.00/hr is reached in September 2026. Starting in 2027, future increases will be tied to inflation using the Consumer Price Index (CPI), as required by state law (Florida Constitution, Article X, Section 24).
• DOL overtime-exemption thresholds: The U.S. Department of Labor has proposed raising the salary cutoff for exempt executive, administrative, and professional employees. Florida employers are advised to follow federal updates.
• Workers’ compensation updates: As of January 1, 2025, Florida increased reimbursement rates for medical providers treating injured workers, which is intended to improve access to care.

Federal payroll laws every employer should know

While payroll laws vary by state, federal payroll laws set the baseline that all employers across the U.S.—including those in Florida—must follow. These laws regulate how wages are paid, how taxes are withheld, and what benefits employers must offer in certain situations. Here's a look at the key federal regulations that impact payroll:

Fair Labor Standards Act (FLSA)

The FLSA establishes federal standards for minimum wage, overtime pay, recordkeeping, and child labor. It applies to most full-time and part-time workers in the private sector and in federal, state, and local governments. These are some of the payroll laws that fall under the FLSA.

• Federal minimum wage: As of 2025, the federal minimum wage is $7.25 per hour. 
• Employers can pay tipped employees less than the full minimum wage—as long as the employee earns at least $30 per month in tips and their total pay (wages plus tips) adds up to at least the federal minimum wage of $7.25 per hour.
• Overtime pay: Nonexempt employees must be paid 1.5 times their regular rate for hours worked over 40 in a week.
• Recordkeeping: The FLSA requires employers to keep accurate, accessible records for all nonexempt employees. This includes basic information like name, address, Social Security number, occupation, hours worked, wages paid, and pay rates. Employers using the tip credit must also maintain weekly records of reported tips and the amount of credit claimed.
• Keep for at least 3 years: Payroll records, collective bargaining agreements, and sales or purchase records.
• Keep for at least 2 years: Timecards, wage rate tables, schedules, and records of wage changes.

Internal Revenue Service (IRS) Regulations

Employers are required to comply with IRS rules pertaining to payroll taxes. Taxes must be calculated, withheld, and submitted accurately and on time. Employers need to:

• Withhold federal income tax from employee wages based on Form W-4 information and current IRS federal withholding tax tables.
• Withhold and match Social Security and Medicare taxes (FICA) from employee wages. For 2025:
• Social Security tax: 6.2% each for employer and employee, up to a wage base limit of $176,100.
• Medicare tax: 1.45% each for employer and employee, with no wage base limit.
• Pay Federal Unemployment Tax Act (FUTA) taxes:
• Employers must pay a federal unemployment tax of 6.0% on the first $7,000 of each employee’s annual wages.
• If all state unemployment taxes are paid on time and the employer’s state is not designated as a credit reduction state, the FUTA tax may be reduced by a credit of up to 5.4%, resulting in an effective rate of 0.6%.
• Only employers pay FUTA; it is not withheld from employee wages.
• FUTA taxes are reported annually using IRS Form 940.

Affordable Care Act (ACA)

The Affordable Care Act (ACA) requires employers with 50+ full-time employees to offer affordable health insurance and report coverage to the IRS. 

• They must offer affordable, minimum-value coverage to at least 95% of full-time employees and dependents.
• "Affordable" means the employee's share of self-only coverage doesn’t exceed a set income-based percentage.
• Employers must file Forms 1094-C and 1095-C with the IRS annually to report coverage details.
• Visit the IRS website to see if the ACA applies to your business. 

Smaller businesses with fewer than 50 full-time employees may still be subject to certain ACA requirements depending on their specific circumstances. Check the IRS website for additional information on ACA tax provisions for small employers. 

Key Florida payroll laws

Federal payroll laws set the foundation, and Florida tends to follow those benchmarks with minimal additional complexity. That means Florida payroll laws are generally straightforward and align closely with federal standards. However, there are a few state-specific nuances worth noting. 

Minimum wage in Florida for 2025

As of September 30, 2025, Florida’s minimum wage will increase to $14 per hour, following a constitutional amendment passed in 2020 that mandates a $1 annual increase through 2026. Tipped employees benefit from a “tip credit," allowing employers to pay a reduced cash wage of $10.98 per hour, provided total earnings meet or exceed the full minimum wage. Most industries adhere to this uniform rate.

Florida overtime rules

Florida employers must follow federal overtime rules under the Fair Labor Standards Act (FLSA), as the state does not impose additional overtime requirements. These rules apply to most nonexempt employees working in Florida.

• Standard overtime pay: Employees must be paid 1.5 times their regular rate of pay for:
• Hours worked over 40 in a single work week

Florida law does not require overtime pay for:

• Hours worked over 8 in a day
• Work on weekends or holidays (unless it pushes the total hours above 40 in the workweek)
• Consecutive days worked without exceeding the weekly threshold
• Double-time pay: Florida does not mandate double-time pay, regardless of how many hours an employee works in a single day or week. However, employers may choose to offer it as part of their internal policies or collective bargaining agreements.

Pay frequency

Florida does not have a state law that sets specific payday requirements. Instead, employers must follow federal Fair Labor Standards Act (FLSA) guidelines and ensure wages are paid on a regular, reliable schedule. That means you must clearly establish pay periods and paydays and then stick to them consistently.

While Florida law allows flexibility in how often employees are paid, it’s essential to honor your stated payroll schedule and meet federal standards for timely payment.

Semi-monthly pay periods

• Employers may choose a semi-monthly schedule, such as paying on the 15th and last day of each month.
• Wages must be paid no later than the established payday following the end of the pay period.
• Any delays beyond the agreed schedule can expose you to wage disputes or non-compliance claims.

Other pay periods (weekly, biweekly, etc.)

• Weekly and biweekly schedules are also allowed in Florida.
• As with semi-monthly pay, you must pay employees promptly on the designated payday after the close of each period.
• Federal law requires the timely payment of earned wages, even if the state has no mandate.

Overtime pay

• Overtime wages must be paid on the regular payday for the pay period in which the overtime was earned.
• If adjustments are needed after the fact, they must be made in the next pay cycle and clearly noted in the employee’s pay statement.

Exception for exempt employees

• Executive, administrative, and professional employees who qualify as exempt under the FLSA may be paid monthly.
• Salaries must be paid in full, on time, and without unlawful deductions, even if an employee works fewer days during that pay period.

To avoid violations under Florida pay laws and federal payroll regulations, make sure your payroll policies are documented, transparent, and consistently applied.

Final paycheck laws in Florida

In Florida, there is no specific statute requiring the immediate payment of final wages after termination or resignation. However, employers must follow their established payroll schedule and ensure all earned wages are paid by the next regular payday, in compliance with federal law.

• Termination (fired or laid off): Final wages must be paid by the next scheduled payday after the termination date.
• Voluntary resignation: Final pay must also be issued by the next regularly scheduled payday, regardless of whether the employee gave notice.
• With 72+ hours’ notice: Florida law does not provide a separate timeline for employees who give advance notice. Final pay is due on the next payday.
• Without notice: The same rule applies: final wages are due by the next regular payday.
• Accrued vacation (PTO payout): Florida does not require payout of unused vacation or paid time off unless the employer has a written policy or employment agreement that guarantees it. If your company promises PTO payout, you’re legally obligated to honor it.
• Waiting time penalty: Florida does not impose a waiting time penalty for late payment of final wages. However, failure to pay by the promised date could trigger a breach of contract action under state law or a wage complaint under federal law.
• Additional considerations: 
• Sick leave: Employers are not required to pay out unused sick leave unless otherwise stated in company policy.
• Severance pay: Severance is not mandated by Florida law and is typically offered based on company policy or negotiated agreements.
• Deductions: Employers may only deduct from final wages if the deductions are authorized in writing or permitted by law. Deductions for unreturned uniforms, equipment, or other property must be handled carefully to avoid violating wage laws.

For more detailed information, refer to the U.S. Department of Labor’s resources on final pay requirements.

Family leave policies

Florida does not have a state-specific family leave law. Instead, employers and employees in Florida are governed primarily by the federal Family and Medical Leave Act (FMLA). Under FMLA, eligible employees may take up to 12 weeks of unpaid, job-protected leave annually for qualifying family and medical reasons, including the birth or adoption of a child, serious health conditions, or caring for a family member.

To qualify for FMLA leave, employees must have worked for the employer for at least 12 months and logged at least 1,250 hours during the previous year. Employers with 50 or more employees within a 75-mile radius are subject to FMLA regulations.

Florida employers may choose to offer additional family leave benefits or paid parental leave as part of their own policies, but such programs are not required by state law.

State-specific recordkeeping requirements

Florida largely follows federal recordkeeping standards established by the Fair Labor Standards Act (FLSA). Employers must keep accurate payroll records, including hours worked, wages paid, and tax withholdings, to ensure compliance with both federal and state regulations.

While Florida does not impose additional, unique recordkeeping mandates beyond federal requirements, it is important to maintain documentation such as:

• Employee time sheets or electronic time tracking
• Payroll registers and wage statements
• Records of tax deposits and filings
• Documentation of wage deductions and benefits

Employers should retain payroll records for at least three years, as recommended by the U.S. Department of Labor, although some tax-related records may require longer retention periods.

Maintaining thorough and organized records helps prevent disputes, supports audit readiness, and ensures smooth compliance with Florida payroll laws.

Tip credit rules

Florida allows employers to take a tip credit toward the state minimum wage, as long as tipped employees regularly earn at least $30 per month in tips. As of September 30, 2025, the state minimum wage will be $14.00 per hour, and the maximum tip credit is $3.02, meaning the minimum direct (cash) wage for tipped employees is $10.98 per hour.

Key requirements for employers using the tip credit:

• Employers must notify employees in advance if they plan to apply a tip credit.
• Employees must be allowed to retain all tips, unless participating in a valid tip pooling arrangement.
• If an employee’s total earnings (wages + tips) fall short of the $14.00/hour minimum, the employer must make up the difference that same pay period.
• Employers must track and document tipped income accurately to remain compliant with both Florida law and the FLSA.

These rules primarily apply to roles in restaurants, bars, hospitality, salons, and other service-based jobs where tipping is customary. Maintaining accurate records of tips and ensuring full compensation are essential to avoiding wage violations.

Florida payroll taxes 

Employers in Florida must comply with federal payroll tax requirements (all of which apply nationwide), including Social Security, Medicare (FICA), and federal income tax withholding. However, Florida stands out for its simplicity: The state does not levy a personal income tax or require most other state-level payroll taxes.

Still, you must be aware of important state-specific taxes and obligations, particularly unemployment insurance (UI).

Unemployment Insurance (UI)

Florida requires employers to pay state unemployment tax, known as reemployment tax, which funds temporary benefits for eligible unemployed workers. The program is administered by the Florida Department of Commerce (formerly DEO).

• Who pays: Employers only
• Rate: Ranges from 0.1% to 5.4% based on employer experience; new employers typically start at 2.7%
• Wage limit: Applies to the first $7,000 in wages paid to each employee per year
• Reporting and payment: Employers must file quarterly reports using Florida’s online Reemployment Tax system (formerly known as MyFloridaTax)

Failing to report wages or make timely payments can lead to penalties and interest, so it’s important to maintain accurate payroll records and meet all due dates.

Florida payroll compliance requirements

While federal payroll laws such as the Fair Labor Standards Act (FLSA) apply nationwide, Florida imposes minimal additional requirements at the state level. That makes Florida one of the simpler states for payroll compliance, but employers are still responsible for meeting a few important state obligations.

Florida doesn’t have a state income tax, nor does it require state disability insurance or paid family leave programs. However, you’ll still need to comply with the following.

State registration

Before you can pay employees in Florida, you must register with the Florida Department of Revenue (DOR) to report and remit reemployment tax (Florida’s version of unemployment insurance). Registration is completed online through the DOR’s e-Services portal.

Reemployment tax filings

All Florida employers must file wage reports and pay reemployment tax quarterly. Deadlines fall on the last day of the month following each calendar quarter:

• Q1: April 30
• Q2: July 31
• Q3: October 31
• Q4: January 31

Employers must use the Florida Department of Revenue’s Reconnect system to submit reports and payments electronically.

Timely wage payments

Florida does not mandate a specific pay frequency. However, federal law requires that employees be paid on a regular, established payday. Best practices include:

• Setting a clear payroll schedule (e.g., biweekly, semimonthly)
• Communicating pay periods and paydays to employees in writing
• Paying employees promptly, including overtime and final pay

Recordkeeping

Florida follows federal standards for payroll recordkeeping. Employers must keep payroll records for at least three years, including:

• Employee information (name, SSN, occupation)
• Hours worked and wages paid
• Tax withholding and deductions
• Employment start/end dates

Maintaining accurate records is essential in the event of a state or federal audit.

Can an employer withhold a paycheck for any reason?

No. Employers cannot withhold a paycheck for any reason not allowed by law. They are legally required to pay all earned wages on time. Deductions are only permitted if:

• Required by law (e.g., taxes, wage garnishments)
• Authorized in writing by the employee (e.g., benefits)
• Covered under a collective bargaining agreement

Employers may not withhold wages as punishment or for issues like property damage. Unlawful withholding can lead to legal action by the employee.

Consequences of non-compliance

In addition to the specific regulatory actions outlined above, failing to follow Florida’s payroll rules can lead to broader consequences for your business:

Financial penalties 

Non-compliance with payroll laws often leads to monetary penalties. For example, the Florida Department of Revenue (DOR) may impose:

• Late filing penalties for reemployment tax: $25 per month, up to $300 per report
• Interest on unpaid taxes, which accrues daily until payment is made
• Loss of reduced tax rates, increasing your future payroll costs

At the federal level, failing to deposit employment taxes or withholding the wrong amount can result in IRS penalties ranging from 2% to 15% of the unpaid amount, plus interest. These fines can escalate quickly if errors are repeated or not addressed promptly.

Employee claims and lawsuits

If you fail to pay employees properly, such as by withholding too much, failing to pay overtime, or delaying final pay, employees may file complaints or take legal action. Although Florida doesn’t have a state wage enforcement agency, workers can:

• File complaints with the U.S. Department of Labor (DOL)
• Pursue civil lawsuits to recover unpaid wages, damages, and legal fees
• Seek double damages for willful violations under federal law

Even unintentional payroll errors can trigger disputes and legal costs, especially if multiple employees are affected.

Audits and investigations

Employers who misreport wages, underpay taxes, or fail to maintain proper records can be subject to state and federal audits. The Florida DOR regularly audits businesses to verify wage reports, reemployment tax filings, and classification of workers.

Red flags that may trigger an audit include:

• Inconsistent or missing quarterly reports
• Sudden drops in reported wages
• Misclassification of independent contractors

Audits can result in back taxes, penalties, interest, and increased scrutiny in future years.

Reputation damage

Payroll issues don’t just hurt your finances. They can also damage your brand and reputation. Employees who are paid late or inaccurately may share their experiences publicly, hurting your ability to attract talent.

Negative press or government enforcement actions may also raise red flags for potential customers, partners, or investors. In a competitive market, poor payroll practices can tarnish your business image for years.

Operational setbacks

Handling payroll errors can divert time and resources from your core operations. If you're dealing with audits, correcting reports, or fielding employee complaints, productivity can suffer. You may also need to:

• Hire additional staff or consultants to fix issues
• Upgrade payroll software or switch providers
• Delay business plans to address compliance gaps

These operational disruptions can limit your growth, hurt morale, and increase long-term costs.

Common payroll mistakes (and how to avoid them)

Payroll mistakes can cost businesses more than just money—they can lead to fines, compliance violations, and damaged employee trust. Below are some of the most frequent errors companies make, along with ways to prevent them. 

Misclassifying employees

Classifying a worker incorrectly, such as treating an employee as an independent contractor, can trigger audits and penalties. The IRS may flag businesses that issue both a W-2 and a 1099 to the same individual.

How to avoid this:

• Use IRS and Florida criteria to distinguish contractors from employees
• Use QuickBooks payroll features to categorize workers and file the correct forms.
• Audit classifications regularly to stay compliant.

Underpaying employees 

Failing to pay employees correctly can lead to serious financial consequences. In 2024 alone, the U.S. Department of Labor’s Wage and Hour Division recovered more than $273 million in back wages and damages for nearly 152,000 workers.

How to avoid this: 

• Stay current on wage and hour laws.
• Run regular payroll audits.
• Use automated payroll and time-tracking tools, like a time card calculator.
• Train staff on compliance basics.
• Keep accurate, organized records.

Miscalculating overtime

Overtime mistakes are a top source of wage claims. Errors like not separating regular from overtime hours or applying the wrong rate can add up fast.

How to avoid this:

• Make sure your payroll system automatically and correctly tracks and calculates overtime.
• Review exempt vs. nonexempt classifications.
• Train staff on both federal and Florida overtime rules.
• Use timesheet templates to help employees accurately track their hours and overtime.

Late wage payments

Paying employees late damages trust and can lead to penalties.

How to avoid this:

• Automate payroll with scheduled direct deposits.
• Monitor cash flow regularly.
• Use payroll calendar templates, alerts, and reminders to track due dates and meet deadlines.

Poor recordkeeping

Incomplete or inaccurate records can derail compliance, lead to fines, and make it hard to defend against claims.

How to avoid this:

• Keep detailed records of hours, wages, classifications, and deductions.
• Use secure, digital payroll software to track and store information.
• Back up your data regularly.

Timesheet errors

According to QuickBooks research, U.S. employers report needing to fix errors on 80% of employee-submitted timesheets. One of the main causes? Employees forget to clock in or out and later struggle to recall their actual hours worked.

How to avoid this:

• Employ digital time-tracking software and tools with real-time clock-in/clock-out features.
• Enable automated reminders or mobile alerts to prompt employees throughout the day.
• Train staff on proper timekeeping procedures and the importance of accurate reporting.
• Review timesheets regularly before processing payroll to catch discrepancies early.

Incorrect tax withholding

Failing to withhold the correct amount of federal, state, or local taxes can result in penalties. 

How to avoid it:

• Use payroll software that automatically calculates and withholds the correct taxes for each jurisdiction.
• Stay up to date with IRS and state tax rate changes each year.
• Review employee W-4 forms regularly and update them as needed.
• Reconcile payroll tax filings with payment records to catch discrepancies early.
• Consider working with a payroll provider that offers tax filing and accuracy guarantees.
• Accurately estimate taxes and net pay by using a Florida paycheck calculator before processing payroll.
• Consult with a tax professional in Florida who understands the state’s payroll landscape to ensure you're meeting all local obligations and staying compliant.

Payroll resources for Florida employers

Employers in Florida must comply with both state and federal requirements, which involves coordination with several government agencies. Here's a summary of the most relevant ones:

• Florida Department of Revenue: Administers the state's reemployment tax (Florida’s version of unemployment insurance) and provides employer tax registration, reporting, and payment systems.
• Florida Department of Economic Opportunity (DEO): Oversees the Reemployment Assistance Program and offers employer resources for managing claims and maintaining compliance.
• Florida Department of Business and Professional Regulation (DBPR): Offers licensing support and compliance tools for employers in regulated industries.
• Florida Department of Financial Services (DFS): Provides workers’ compensation compliance resources, insurance requirements, and payroll audit information.
• Internal Revenue Service (IRS): Handles federal payroll tax responsibilities, including federal income tax withholding, Social Security, Medicare, and Federal Unemployment Tax Act (FUTA) compliance.
• U.S. Department of Labor (DOL): Enforces federal labor laws under the Fair Labor Standards Act (FLSA), including minimum wage, overtime, and recordkeeping rules. 

Simplify payroll law compliance for your Florida business 

Even though Florida payroll laws are generally more straightforward than those in other states, accuracy still matters. QuickBooks Payroll helps you stay accurate and compliant by automatically calculating, filing, and paying your federal and state payroll taxes—backed by a 100% accuracy guarantee and tax penalty protection.** On-the-go time tracking with QuickBooks Time keeps employee hours organized and synced. Plus, as your business grows, QuickBooks scales with you, offering the right tools to support faster, more seamless payroll. 

Disclaimer:

**Accuracy Guaranteed: Available with QuickBooks Online Payroll Core, Premium, and Elite. We assume responsibility for federal and state payroll filings and payments directly from your account(s) based on the data you supply. As long as the information you provide us is correct and on time, and you have sufficient funds in your account, we'll file your tax forms and payments accurately and on time or we'll pay the resulting payroll tax penalties. Guarantee terms and conditions are subject to change at any time without notice.

Tax penalty protection: If you receive a tax notice and send it to us within 15 days of the tax notice we will cover the payroll tax penalty, up to $25,000. Additional conditions and restrictions apply. Only QuickBooks Online Payroll Elite users are eligible to receive tax penalty protection.

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