Free Florida payroll tax calculator (and FL tax rates)

Payroll calculator Florida employers use to calculate federal 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 $168,600 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.

We also have a detailed overview of what goes into processing payroll that you may find useful after reading about taxes Florida employers need to know about.

2024 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, which Florida calls Reemployment Tax since legislation passed in 2012.

• 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

If crunching all the numbers gets to be much too much, you have options. To automate most of the processes, including withholding taxes and deductions, it can make sense to outsource this work to the many payroll service providers on the market. Most handle the heavy lifting, so you have more time to focus on other aspects of your business.

New hire reporting in Florida

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:

• 888-854-4791
• 850-656-3343

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.

Corporate income tax in Florida

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.

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

Lastly, the state of Florida provides a new employer kit, which includes this PDF guide of the most common payroll taxes business owners in the state should be familiar with.

If you already work with a company that automates withholdings and deductions when processing pay runs, but want to get more value from your investment, there’s options. For example, some companies bundle HR software to manage back office tasks like employee onboarding and completing form W-4s. Not sure where to start? Our guide to switching payroll providers midyear can give you an idea of what to look for when researching companies.

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.

More helpful payroll calculators

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.