How Much Are Payroll Taxes in Florida?

Payroll taxes are contributions made by employers and, in some cases, employees to fund various government programs. These taxes are generally tied to employee wages and serve to support benefits such as retirement, healthcare, and unemployment assistance. Understanding these obligations helps businesses manage finances and maintain compliance. The accurate calculation and timely remittance of these taxes are ongoing responsibilities for any employer.

Federal Payroll Taxes Applicable in Florida

Employers in Florida are subject to federal payroll taxes, which include contributions under the Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA). FICA taxes fund Social Security and Medicare programs, providing retirement, disability, survivor benefits, and healthcare for eligible individuals.

For 2025, the Social Security tax rate is 6.2% for both the employee and the employer, applied to wages up to a limit of $176,100. This means the maximum Social Security tax an employee or employer would pay is $10,918.20.

The Medicare tax rate is 1.45% for both the employee and the employer, with no wage base limit. An additional Medicare tax of 0.9% applies to an individual’s wages exceeding $200,000 in a calendar year, which employers must withhold, but there is no employer match for this additional tax.

The Federal Unemployment Tax Act (FUTA) provides funds for unemployment compensation benefits. The FUTA tax rate is 6.0% on the first $7,000 of each employee’s wages annually. Employers receive a credit of up to 5.4% for timely state unemployment tax payments, reducing the net federal rate to 0.6%. This results in a maximum FUTA tax of $42 per employee per year.

Florida State Payroll Taxes

Florida does not impose a state income tax on individuals or businesses. This absence simplifies payroll calculations compared to many other states. The primary state payroll tax in Florida is the Reemployment Tax, often known as State Unemployment Tax Act (SUTA) tax.

The Florida Reemployment Tax funds the state’s Reemployment Assistance Program, which provides temporary financial benefits to eligible individuals who become unemployed through no fault of their own. This tax is paid solely by employers, and Florida law prohibits employers from deducting any portion of this tax from employee wages.

For new employers in Florida, the initial Reemployment Tax rate is 2.7% on the first $7,000 of wages paid to each employee annually. This initial rate remains in effect until the employer has reported for 10 quarters, after which an experience rating is calculated. The experience rating adjusts the employer’s tax rate based on factors such as the amount of benefits charged to their account. The minimum Reemployment Tax rate in Florida is 0.1% and the maximum rate is 5.4%, based on the annual taxable wage base of $7,000 per employee.

Employer Responsibilities for Payroll Tax Compliance

Employers must accurately calculate and withhold federal income tax and employee FICA taxes from each employee’s gross wages. The employer is then responsible for contributing their matching portion of FICA taxes. These amounts, along with the employer’s FUTA and state Reemployment Tax liabilities, must be remitted to the appropriate government agencies.

Federal payroll taxes, including FICA and federal income tax withholding, follow either a monthly or semi-weekly deposit schedule. The specific schedule an employer must use depends on their total tax liability during a “lookback period” determined by the IRS. Monthly depositors remit taxes by the 15th day of the following month, while semi-weekly depositors have more frequent deadlines based on payday. Employers who accumulate $100,000 or more in tax liability on any day during a deposit period must deposit the tax by the next business day.

Employers report federal payroll taxes quarterly using Form 941, “Employer’s Quarterly Federal Tax Return,” due by the last day of the month following the end of the quarter (e.g., April 30 for the first quarter). Annually, employers file Form 940, “Employer’s Annual Federal Unemployment (FUTA) Tax Return,” by January 31 of the year following the tax year. Employers also provide employees with Form W-2, “Wage and Tax Statement,” by January 31, reporting annual wages and withheld taxes.

For Florida Reemployment Tax, employers file Form RT-6, “Employer’s Quarterly Report,” with the Florida Department of Revenue. This report details taxable wages and is due quarterly. Rate notices (Form RT-20) are mailed to employers in December, indicating the rate for the upcoming year. Adhering to these filing and payment requirements avoids penalties and ensures proper funding of government programs.