Running payroll in Florida is simpler than in many states because Florida imposes no state income tax on individuals. That means no state withholding calculations, no state W-2 boxes to populate, and no state income tax returns for employees to file.
But simpler does not mean simple. Federal payroll obligations are fully in effect, Florida's Reemployment Tax requires quarterly filing and payment, workers' compensation coverage is mandatory for most employers, and the penalties for payroll noncompliance are among the most aggressive in the tax code. The IRS treats unpaid payroll taxes as trust fund obligations, and the personal liability exposure for business owners who fail to remit them is real and enforceable.
This guide covers every payroll compliance requirement Florida employers need to know, organized by obligation, deadline, and consequence.
Federal Payroll Tax Obligations
Deposit Schedules and Form 941
Every employer that pays wages must withhold federal income tax, Social Security tax (6.2% employee, 6.2% employer), and Medicare tax (1.45% each) from each paycheck. These withholdings, combined with the employer's matching share, must be deposited with the IRS on a schedule determined by the employer's total payroll tax liability during a lookback period.
Monthly depositors (those with $50,000 or less in payroll taxes during the lookback period) must deposit by the 15th of the following month. Semi-weekly depositors (those above $50,000) must deposit within three banking days of the payroll date for Wednesday through Friday payrolls, and within one banking day for Saturday through Tuesday payrolls.
All deposits must be made electronically through the Electronic Federal Tax Payment System (EFTPS). Paper checks are not accepted for payroll tax deposits.
Form 941 (Employer's Quarterly Federal Tax Return) is filed quarterly to report wages paid, tips, federal income tax withheld, and the employer and employee shares of Social Security and Medicare taxes. Due dates are April 30, July 31, October 31, and January 31.
Annual Filings: W-2 and Form 940
By January 31, employers must furnish W-2s to all employees and file copies with the Social Security Administration. Form 940 (Annual Federal Unemployment Tax Return) reports FUTA tax, which is 6.0% on the first $7,000 of each employee's wages, reduced by a credit for state unemployment tax paid. Most Florida employers receive the full 5.4% credit, making the effective FUTA rate 0.6%.
Managing payroll compliance in-house? TYM Consulting offers payroll processing and compliance services starting at $45 per employee. Talk to us about your payroll setup.
Florida-Specific Payroll Requirements
Reemployment Tax
Florida's Reemployment Tax (the state's version of unemployment insurance) is paid entirely by the employer. New employers receive an initial rate assigned by the Florida Department of Revenue based on industry classification. After the employer establishes a track record, the rate adjusts annually based on claims experience.
The tax applies to the first $7,000 of each employee's annual wages, with rates ranging from 0.10% to 5.40%. Quarterly reports are filed through the Florida Department of Revenue's RT-6 form, due by the last day of the month following each quarter.
Workers' Compensation
Florida law requires workers' compensation coverage for employers in the construction industry with one or more employees, non-construction employers with four or more employees, and all employers of agricultural workers with six or more regular employees or twelve or more seasonal workers.
Coverage must be obtained through a licensed insurance carrier or through self-insurance if the employer qualifies. Failure to maintain required coverage can result in stop-work orders and penalties of twice the premium the employer would have paid.
New Hire Reporting
Florida employers must report all newly hired and re-hired employees to the Florida New Hire Reporting Center within 20 days of the hire date. The report includes the employee's name, address, Social Security number, and the employer's name, address, and federal EIN. This requirement supports the state's child support enforcement program.
Payroll Deadlines Florida Employers Cannot Miss
The critical dates are straightforward but unforgiving. Federal payroll tax deposits follow the monthly or semi-weekly schedule. Form 941 is due quarterly. W-2s and Form 940 are due January 31. Florida RT-6 filings are due quarterly. New hire reports are due within 20 days of hire. Any missed deadline triggers automatic penalties with limited grounds for abatement.
Penalties for Payroll Noncompliance
The IRS failure-to-deposit penalty starts at 2% for deposits made 1 to 5 days late, increases to 5% for 6 to 15 days late, 10% for deposits made more than 15 days late, and 15% for amounts still unpaid after an IRS notice. These penalties compound on top of interest charges.
The most severe consequence is the Trust Fund Recovery Penalty (TFRP), which applies when an employer withholds payroll taxes from employees but fails to remit them to the IRS. The IRS can assess the TFRP against any "responsible person" who willfully failed to pay, including business owners, officers, and even bookkeepers with check-signing authority. The penalty equals 100% of the unpaid trust fund taxes and is assessed personally, piercing any corporate liability protection.
How to Stay Compliant Without an Internal Payroll Department
Many small and mid-sized businesses outsource payroll to ensure compliance without the overhead of an internal payroll specialist. A CPA firm that handles payroll provides not only processing and filing but also compliance monitoring, deposit scheduling, year-end reporting, and audit support.
TYM Consulting offers payroll services at three tiers: basic payroll at $45 per employee, advanced multi-state payroll at $75 per employee, and full payroll plus HR administration at $95 per employee. Each tier includes tax filings, direct deposit, and compliance reporting.
Payroll compliance is not where you want to take shortcuts. Talk to TYM Consulting about setting up a compliant, fully managed payroll solution for your business.