Florida Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Florida.
Along with a state minimum wage rate that’s higher than the federally mandated rate, Florida has a corporate income tax it requires of businesses that operate within the state.
When it comes to processing payroll, Florida-based organizations must handle the following taxes in addition to those required by the federal government:
- State Unemployment Insurance (SUI)
- Corporate Income Tax
The below information was last updated January 30, 2024. It is not intended as legal or tax advice.
Florida Minimum Wage Rates
|
Wage Type |
Florida Rates |
Federal Rates |
|
Minimum Wage |
$13.00 |
$7.25 |
|
Tipped Minimum Wage |
$9.98 |
$2.13 |
|
Actual Tip Credit |
$3.02 |
$5.12 |
Florida State Income Tax (SIT) Rates
Florida is one of the few states that doesn't impose or collect a personal income tax.
Florida State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
Florida SUI Tax Details |
|
|
Taxable Wage Base |
$7,000 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.1% – 5.4% |
|
Rates for New Employers |
2.7% |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
No |
Florida State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Florida, however, doesn't require employers to collect an SDI tax.
Miscellaneous Florida Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Florida currently has no reciprocal agreements with any other states.
This doesn’t mean, however, that interstate workers living in Florida pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
Paid Sick Leave (PSL) Taxes
The state of Florida doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.
Paid Family and Medical Leave (PFML) Taxes
The state of Florida doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
Corporate Income Tax
In exchange for conducting business and earning income in the state, corporations must also pay an income tax of 5.5% for taxable years beginning on or after January 1, 2022. This includes entities taxed federally as corporations for federal income apportioned to Florida based on the corporation’s activities in the state (e.g., property, payroll, sales, etc.) compared to its activities everywhere.
Florida Employer Registration
The state’s Department of Revenue can help with your state-based employer registration, including best practices, account numbers, and unemployment information.
|
Registration Details |
Department of Revenue |
|
Phone |
(850) 488-6800 |
|
Online Registration |
Florida Business Tax Application |
|
Registration Form |
Form DR-1 |
|
Registration Instructions |
Account numbers will be issued within 3-4 days via the online process or 4-6 weeks via mail. |
Additional Florida Payroll Tax Resources
- Department of Revenue Information for Businesses and Employers
- Department of Revenue General Tax Administration Program
- Department of Revenue Tax Information Publications
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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