©2023 OnPay, Inc.
Insurance offered through OnPay Insurance Agency, LLC (CA License #0L29422)
Ready to get started?
Updated: March 22, 2023
According to the SBA, around 2.8 million small business owners contribute to the Florida economy. That’s a lot of employers that need to get payroll taxes right. The calculator at the top of this page can help you do the math for all your employee and employer payroll taxes, and the resources below can help you understand (and stay ahead of) your obligations.
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.
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, which Florida calls Reemployment Tax since legislation passed in 2012.
Both state and federal law require all employers in Florida to report newly hired and re-hired employees (plus independent contractors who will earn more than $600 per calendar year) to a state directory within 20 days of their start date. You can report here and are responsible to do so even if any of these workers only work one day. For more information, Florida’s new New Hire Reporting Center has an in-depth help article on how to report (and different options available). And if you need more assistance, they have two numbers you can call:
In addition, most payroll software providers handle new hire reporting on a weekly basis, which can free up time for employers to focus on other tasks. Looking to save time by handing tasks such as new hire reporting to an outside provider but unsure where to start? In just a few clicks, you can easily compare payroll services by using our comparison tool, which summarizes user reviews, features, ratings, and how each service compares to the others.
All corporations have to pay a Florida corporate income and franchise tax for the privilege of doing business, and earning money in the state. The tax applies to corporations, including those that are taxed at the federal level as corporations.
When a corporation operates in Florida, its federal income is adjusted based on specific factors related to the state. Then, the corporation’s income is distributed to Florida based on its activities within the state compared to everywhere else it operates. In many cases, it takes into account the company’s assets, payroll, and sales. For taxable years beginning on or after January 1, 2022, the corporate income tax rate in Florida is 5.5%. You might also be eligible for tax incentives.
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.
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
These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.
Florida employers can use the calculator at the top of this page to quickly process their employees’ gross pay, net pay, and deductions (and feel confident when cutting paychecks). But occasionally, employers run into situations that require a little more number crunching. For instance, do you reward your high-performing employees with bonuses? Keep in mind that Uncle Sam considers this type of payment to be supplemental wages and requires taxes to be withheld. Additionally, if you have workers who come and go, there may be times when you need to figure out what their final pay will be. So, if you can use a little more help adding up the numbers, check out some of the calculators listed below.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.
Yes, payroll taxes include employer contributions to Medicare tax, Social Security plus Florida’s reemployment tax, which is deposited into the state Unemployment Compensation Trust fund.
Employers pay a reemployment tax to contribute to Florida’s state unemployment program, which provides a temporary source of income to workers who have lost their jobs through no fault of their own. Employers are not allowed to deduct wages from employees to pay for reemployment tax.
No, according to the 2022 Florida Statutes (including 2022 Special Session A and 2023 Special Session B) employers in the state of Florida may not force an employee to receive wages through direct deposit or terminate an employee for refusing to use direct deposit to accept payment.
Yes! OnPay withholds all payroll taxes (federal, state, and local) during each pay run and makes all tax payments, in addition to filing Form 941 quarterly and Form 940 at year’s end for clients based in the state of Florida.
No, there is no state withholding tax in Florida. However, are required to pay state unemployment insurance (also known as reemployment assistance) taxes.
Yes, you do. Businesses in the state of Florida are required to be registered with the Division of Corporations. This step must be taken in order to be able to register for a business tax account in the state of Florida and collect, accrue, and remit taxes as a business.