Florida Reemployment Tax: What Employers Need to Know

Florida’s Reemployment Tax is an employer-funded program that provides temporary financial assistance to individuals who have lost their jobs. This state-level tax is paid entirely by employers and should not be deducted from employee wages. The funds collected are deposited into the Unemployment Compensation Trust Fund, which is used for paying reemployment assistance benefits. The Florida Department of Revenue administers the tax.

Determining Employer Liability in Florida

A business becomes liable to pay reemployment tax by meeting criteria related to its payroll or employment duration. One threshold is having a quarterly payroll of $1,500 or more in a calendar year. Alternatively, a business is liable if it employs at least one person for any part of a day across 20 different weeks within a calendar year, and these weeks do not need to be consecutive.

The distinction between employees and independent contractors impacts liability. An employer-employee relationship exists when the business can direct and control how work is done, not just the final result.

Liability can also be established through business acquisition. A company that purchases a liable business inherits that liability. This also applies if the combined payroll or employment figures of the purchasing company and the acquired entity meet the standard liability criteria.

How the Tax Rate Is Calculated

The reemployment tax rate for new employers is 2.7% (.0270). This rate applies to the first $7,000 of wages paid to each employee annually; wages beyond this amount are not taxed.

After an employer reports wages for ten quarters, the state calculates an “experience rating” for the business. This rating is based on the employer’s benefit ratio, which compares benefits charged to the account against its taxable payroll. A lower benefit ratio results in a lower tax rate.

The annual tax rate calculation also includes adjustment factors to ensure the state’s trust fund remains solvent. Each year, employers receive a Reemployment Tax Rate Notice (Form RT-20) which specifies their tax rate for the upcoming calendar year. For 2025, rates can range from a minimum of 0.1% (.0010) to a maximum of 5.4% (.0540).

Information Needed to Register for an Account

Employers must register with the Florida Department of Revenue using the Florida Business Tax Application (Form DR-1). To complete the application, a business must gather several pieces of information.

The application requires the following:

• Federal Employer Identification Number (FEIN)
• Full legal business name and any trade names (DBA)
• Physical location and mailing addresses for the business
• The business’s legal structure, such as a sole proprietorship, partnership, or corporation
• The date the business first had employees in Florida and the date the first wages were paid
• The names, Social Security numbers, and home addresses of principal officers, partners, or the individual owner

The Process for Filing and Paying

Registered employers must file an Employer’s Quarterly Report (Form RT-6) every calendar quarter. This report is required even if no wages were paid or no tax is due. The form is used to detail gross wages and calculate the reemployment tax owed for the quarter.

Reports and payments are due by the last day of the month following the end of each quarter. For example, the first quarter report is due by April 30. Submitting reports and payments on time is necessary to avoid penalties and interest.

Employers can file their quarterly report and pay online through the Florida Department of Revenue’s portal. Alternatively, they can mail a paper Form RT-6 with a check to the address provided by the department.