Easily manage employment in Florida

Payroll management in Florida

Florida boasts a thriving economy driven by industries such as tourism, healthcare, agriculture, and technology. With no state income tax and a business-friendly regulatory environment, Florida is an attractive location for employers. However, businesses must comply with federal and state payroll laws, including minimum wage requirements, unemployment insurance taxes, and workers’ compensation regulations. Understanding these rules ensures compliance and smooth payroll operations.

Payroll breakdown in Florida

Employers in Florida must follow both federal and state payroll regulations regarding wages, taxes, and benefits. Below is a breakdown of key payroll components:

Minimum wage and overtime

• Minimum Wage: Florida’s minimum wage is $14.00 per hour, with scheduled increases reaching $15.00 per hour by 2026.
• Overtime Rules:
• Florida follows federal overtime laws, requiring employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 hours in a workweek.
• Florida does not mandate daily overtime.

State income Tax

• Florida does not impose a state income tax, simplifying payroll tax withholdings for employers.

Unemployment insurance (UI) tax

• Employers must contribute to Florida’s Unemployment Insurance (UI) program, managed by the Florida Department of Economic Opportunity (DEO).
• The wage base for UI tax in Florida is $7,000.
• UI tax rates vary based on an employer’s experience rating and range from 0.1% to 5.4%.

Workers’ compensation

• Florida law requires most employers with four or more employees to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
• Construction industry employers must provide coverage if they have one or more employees.

Payroll tax filing and payment deadlines

• Employers must register for a Florida Reemployment Tax Account Number with the Florida Department of Revenue.
• UI tax reports must be submitted quarterly to the Florida DEO.
• Payroll tax payments can be made electronically through Florida’s online tax portal.

Quick facts: Important considerations for employers

• No State Income Tax: Employers do not need to withhold state income tax from employee wages, reducing payroll processing complexity.
• Final Paycheck Rules:
• Florida does not have specific laws governing when a terminated employee must receive their final paycheck; however, best practices align with federal guidelines requiring payment by the next scheduled payday.
• New Hire Reporting: Employers must report new hires to the Florida New Hire Reporting Center within 20 days.
• Paid Sick Leave: Florida does not mandate paid sick leave, but employers may voluntarily provide this benefit.
• Payroll Recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
• Right-to-Work State: Florida is a right-to-work state, meaning employees cannot be required to join or pay dues to a labor union as a condition of employment.

Run payroll in Florida with Remote

Managing payroll in Florida requires careful attention to state-specific regulations, including minimum wage adjustments, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

For businesses looking to simplify payroll management, Remote’s payroll solutions provide automated payroll processing, tax filing, and compliance support tailored to Florida’s regulations. With Remote, employers can focus on business growth while ensuring accurate and hassle-free payroll operations.

To see just how easy global payroll can be, book a demo today.