Around 2.3 million small business owners are making a living in Florida. Whether you’re selling flamingo t-shirts to tourists, pressing the best Cuban sandwich in Miami, or helping snowbirds with their estate planning there’s one thing you’ve got to get right: payroll taxes. This paycheck calculator can help you do the math for all your employee and employer payroll taxes (and free you up to do what you do best).
Here’s how it works. Simply enter wage and W-4 information for each employee. Our calculator will figure out your gross pay, net pay, and deductions for both Florida and Federal taxes.
Federal Payroll Taxes
While a 0% state income tax is saving you from some calculations, you are still responsible for implementing federal payroll taxes. Luckily, our Florida payroll calculator is here to assist with calculating your federal withholding and any additional contributions your business is responsible for.
Here’s a quick overview of what you need to know when you’re calculating federal payroll taxes. If you would like to see each step in detail, you can click here to read our step-by-step federal income tax guide.
- Calculate Employee Gross Wages:
- For all your hourly employees, multiply their hours worked by the pay rate…and don’t forget to increase the rate for any overtime hours worked!
- For all your employees on salary, divide each employee’s annual salary by the number of pay periods you have.
- Calculate Pre-Tax Withholdings (if any):
- If your employee contributes to a Flexible Spending Account (FSA), 401(k) retirement savings account, or any other eligible pre-tax withholding accounts, subtract the amount from their gross pay prior to applying payroll taxes.
- Deduct Federal Income Tax:
- Federal income tax ranges from 0% to 37%. Further withholding information from the IRS can be found here.
- Deduct and Match FICA Taxes:
- Social Security Tax: You will need to withhold 6.2% of each employee’s taxable wages up until they have reached a total earning of $137,700 for that year. As an employer, it is your job to match this tax.
- Medicare Tax: You will also need to withhold 1.45% of each employee’s taxable wages up until they have reached a total earning of $200,000 for that year. You will need to match this tax as well. For employees who earn salaries above $200,000, withhold an Additional Medicare Tax of 0.9%. Only the employee is responsible for paying the Additional Medicare Tax.
- Pay FUTA Unemployment Tax:
- You as the employer will pay 6% of each employee’s first $7,000 of taxable income. If you pay state unemployment taxes, you are eligible for a tax credit of up to 5.4%. Employees are not responsible for paying the FUTA tax.
- Subtract Post-Tax Deductions (if any):
- You may need to deduct court-ordered wage garnishments, child support, post-tax contributions to savings accounts, elective benefits, etc.
Florida Payroll Taxes
You already know that the State of Florida charges 0% income tax. And even better, no cities within Florida charge a local income tax. All of which means less work for you.
However, this doesn’t mean you’re in the clear, because you still have to pay State Unemployment Insurance, AKA Reemployment Tax.
- Calling all employers: this bill is on you.
- For new employers, the tax rate is 2.7%, which is applied to the first $7,000 in wages per employee a year. Any amount over that is not subject to tax.
- Those taking over a business from a previous owner are eligible to take the previous owner’s rate.
- Rates for employers who have been in business for more than 10 quarters can range from 0.10% (or $7.00) to 5.4% (or $378) per employee.
- Return and Payment Information
- Frequently Asked Questions
Now Cut Those Checks!
First, pay your employees. Then, it’s time to celebrate. Pop open a bottle of bubbly. Take a bite of that chocolate bar. Sing “Celebration” the whole way home. Splash around the Atlantic. Whatever it is you need to do to celebrate, do it because you’ve just mastered payroll taxes!
Disclaimer: Make sure you’ve set aside the amount your company needs to pay in federal taxes: FICA and UI are not your friends if you let those bills pile up. Federal tax filings are due through Forms 940 (annually) and 941 (quarterly), but deposits can be made on an ongoing basis through the EFTPS payment system. You can learn about the IRS tax due dates here.
Additional Florida Payroll Tax Resources:
Though our calculator can do most of the work, here are some helpful links to further your understanding of payroll in Florida.
Florida Department of Revenue: (800) 352-3671 | Register as an Employer: Form DR-1 | Information for Businesses and Employers | Reemployment Tax