Whether it’s your first or your 100th, hiring a new employee can be an exciting time for a business owner. But it also comes with a lot of obligations under both federal and state law. Here’s what Florida employers need to know to make sure they cross their t’s and dot their i’s when it comes to the applicable legal and tax requirements.
1. Register as an employer
If you haven’t already done so, you need to register as an employer with the IRS and the state of Florida.
The first step is to obtain a federal employer identification number. You can apply for that using IRS Form SS-4, “Application for Employer Identification Number.”
Once you have your federal employer identification number, you can register with the Florida Department of Revenue. You must do that by the end of the month following the calendar quarter in which you become an employer.
You can register with the Florida Department of Revenue online or on paper, with Form DR-1 “Florida Business Tax Application.” When you register, you’ll receive both a business tax account and a Reemployment Tax Number (see below).
2. Verify employee eligibility
New employees must complete the U.S. Citizenship and Immigration Services’ Form I-9, “Employment Eligibility Verification.” The employee is required to fill out Section 1 of the form by their first day of employment. You must complete Section 2 by the end of the third business day after the employee begins work. Keep it on file for three years after the date of hire or one year after the employment ends, whichever is later.
As of July 1, 2023, Florida requires private employers with 25 or more employees to use E-Verify for new employees—and you may want to use it even if not required. E-Verify electronically compares information employers enter from I-9 forms to records available to the Social Security Administration and the U.S. Department of Homeland Security. This verification confirms an employee’s eligibility to work in the United States.
3. Collect withholding information
You should collect IRS Form W-4, “Employee’s Withholding Certificate,” from each new hire on or before the day they start work. The W-4 form is used to determine how much of their pay should be withheld for federal income taxes. Make sure your employees complete it properly.
You aren’t required to submit Form W-4 to the IRS, but you must keep a copy on file for at least four years. The form verifies that you’re withholding federal income tax according to the employee’s instructions. It must be available for inspection if the IRS ever requests it.
4. Submit a new hire report
Under the federal Personal Responsibility and Work Opportunity Reconciliation Act (PWORA), all employers must report certain information on their newly hired employees to a designated state agency. In Florida, that agency is the Florida Department of Revenue. The information is used to help state governments track down parents who don’t satisfy their child support obligations.
The information must be reported within 20 days of an employee’s hire (or rehire) date. To submit the report, you’ll need the employee’s name, address, Social Security number, date of birth, and date of hire. You must also report your federal employer identification number, Florida unemployment compensation number (see below), name, address, contact phone number, and whether you will make medical insurance available to the employee.
You can submit Form CS-EF315, “Florida New Hire Reporting Form,” to the Department of Revenue online or by mail to:
Florida New Hire Reporting Center
P.O. Box 6500
Tallahassee, FL 32314-6500
Note: Florida employers must also report this information for independent contractors who are paid more than $600 in a calendar year.
5. Prepare for your payroll tax obligations
As noted in step 3 above, employers generally must withhold federal income tax from their employees’ pay. You also must withhold their share of Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA).
FICA is a federal tax that both employers and employees pay. It includes two taxes: Medicare tax and Social Security tax. The 2025 tax rates for both employees and employers are 6.2 percent of the first $176,100 of an employee’s earnings for Social Security and 1.45 percent of all wages for Medicare.
You must deposit federal income tax withheld and both the employer and employee Social Security and Medicare taxes. The IRS deposit schedules are either monthly or weekly. You determine which schedule you’re required to use before the beginning of each calendar year.
In addition, you must pay federal unemployment taxes (FUTA) if you:
Paid wages of $1,500 or more to employees in any calendar quarter during the current or previous tax year, or
Had one or more employees for at least some part of a day in any 20 or more different weeks in the previous year or 20 or more different weeks in the current tax year, counting all full-time, part-time, and temporary employees.
The amount due for FUTA is six percent of the first $7,000 of an employee’s wages during the year.
6. Assess your liability for the Florida Reemployment Tax
The reemployment tax—Florida’s version of state unemployment tax—is paid by employers and deposited into the Unemployment Compensation Trust Fund to pay reemployment assistance benefits to eligible claimants. Employers with stable employment records receive reduced tax rates after a qualifying period. The Florida Department of Revenue runs the program.
You’re liable for the reemployment tax if you have:
At least one quarterly payroll totaling $1,500 or more (including wages for both full- and part-time employees) in a calendar year, or
One or more employees for a day (or portion of a day) during any 20 weeks in a calendar year.
When a new employer becomes liable for the reemployment tax, the initial rate is 2.7 percent of an employee’s first $7,000 in wages. The initial rate will apply until the employer has reported for ten quarters. The account is then “rated” by dividing the total benefits charged to the account by the taxable payroll reported for the first seven of the last nine quarters immediately preceding the quarter for which the rate is effective.
Form RT-1, Notice of Benefits Paid, listing the reemployment assistance benefits charged to your account, is mailed approximately two weeks after the end of every quarter if your business incurred benefit charges.
Note: The reemployment tax is entirely the responsibility of the employer. You’re not permitted to make payroll deductions to cover the taxes.
7. Obtain workers’ compensation insurance
Most employers in Florida with four or more employees (including the owners) must have workers’ compensation insurance. (The employee threshold number varies for construction and agricultural employers.) The coverage is provided by private insurance carriers licensed by the Office of Insurance Regulation. The Coverage Assistance Program (CAP) can help you identify insurers with policies for specific class codes or job descriptions.
The cost of your workers’ compensation insurance is based on your estimated annual payroll at the beginning of the policy period, divided by 100, and multiplied by the rate for the type of work your business performs. The Florida Division of Workers’ Compensation applies an Experience Modification (x-mod) factor to make adjustments based on your history of managing your workers’ compensation claims. If you satisfy the criteria, Workplace Safety and Drug Free Workplace Guide discounts may apply to reduce your cost.
You can apply for an exemption for officers of a corporation or members of a limited liability company (LLC). If an exemption is granted, the officer or member isn’t considered an employee of the business and isn’t eligible for workers’ compensation benefits.
8. Display legally required labor law posters
Employers must display a variety of federal and state employment law-related posters in a conspicuous location in the workplace. The posters generally inform employees of their rights and their employer’s responsibilities.
Federally mandated posters may include:
The U.S. Department of Labor has an online “poster advisor” to help employers determine which posters they need to display.
Florida employers must also display the following posters:
Florida Reemployment Assistance Program Law (Form RT-83)
Workers’ Comp Works for You (aka the “Broken Arm” poster)
9. Keep up with your reporting
Employers have numerous ongoing reporting obligations. For example, you must file a Form RT-6, “Florida Employer’s Quarterly Report,” by the end of each month following the end of the quarter—even if you had no employees or wages to report for that quarter. The following deadlines apply:
Quarter | Due by: |
1st (January – March) | April 30 |
2nd (April – June) | July 31 |
3rd (July – September) | October 31 |
4th (October – December) | January 31 |
If you have chosen to pay any of the first three quarters by installments, your final installment is due by the end of December.
You can sign up to receive an email every reporting period reminding you of the due date.
On the federal side, you’ll need to keep up with your IRS Form 941, “Employer’s Quarterly Federal Tax Return,” and IRS Form 940, “Employer’s Annual Federal Unemployment Tax Return.
Deposits for the federal unemployment tax (Form 940) are required for the quarter within which the tax due exceeds $500. The tax must be deposited by the end of the month following the end of the quarter. Form 940 is due by January 31, but if you deposited all FUTA taxes when due, you have until February 10 to file.
File your initial Form 941 for the quarter in which you first paid wages that are subject to Social Security and Medicare taxes or subject to federal income tax withholding. After that, you must file for every quarter, regardless of whether you have any taxes to report — unless you’re a seasonal employer or are filing your final return.
Quarter | Due by: |
1st (January – March) | April 30 |
2nd (April – June) | July 31 |
3rd (July – September) | October 31 |
4th (October – December) | January 31 |
You must also file IRS Form W-2, “Wage and Tax Statement,” to report each employee’s annual wages, deductions, and tax withholding to the IRS. You don’t have to provide a copy to the state, as Florida doesn’t impose individual income tax.
You may have additional reporting obligations based on your industry and other factors.
10. Follow the laws
Employers are subject to a wide range of federal and state employment-related laws, including the following:
Fair Labor Standards Act
Age Discrimination in Employment Act
Failure to comply with any of these laws can lead to costly fines, penalties, lawsuits, and reputational damage.
FAQs
What is the current minimum wage in Florida, and when does it increase to $15 per hour?
The current minimum wage in Florida in 2025 is $14 an hour. On September 30, 2026, the minimum wage will increase by $1 to $15 an hour. Each year, Florida adjusts the minimum wage based on inflation.
Is Florida an “at-will” employment state, and what does that mean for termination?
Yes, Florida is an at-will employment state, which means employers can fire employees at any time for any reason, without notice. The exceptions, of course, are termination based on discrimination or retaliation, or termination that violates an employee’s contract.
Are employers in Florida required to provide meal or rest breaks to adult employees?
Unfortunately, Florida doesn’t legally require employers to give their adult employees meal or rest breaks (though the state does have separate rest break laws for minor employees).
Does Florida law require employers to pay out unused PTO (Paid Time Off) upon separation or termination?
No, Florida employers aren’t legally required to pay out unused PTO when an employee resigns or is let go. However, if a company’s policy requires unused PTO to be paid out, employers must follow it.
What are the age limits and work hour restrictions for hiring employees under the age of 18 (Child Labor Laws)?
If a Florida employer wants to hire a minor employee, they need to follow the state’s age limit and work hour restrictions. Fourteen and 15-year-olds are allowed to work up to 15 hours each week while school is in session; if school isn’t in session, they can work up to 40 hours a week. Employees aged 16 and 17 can work up to 30 hours a week during certain hours of the day while school is in session, and unlimited hours a week when school isn’t in session. Get more information on Florida’s child labor laws here.
What are the Florida-specific anti-discrimination laws that employers must comply with (beyond federal law)?
Employers in Florida have to comply with two key anti-discrimination laws: The Florida Civil Rights Act of 1992 and the Florida Equal Pay Act. The Florida Civil Rights Act prohibits hiring and workplace discrimination based on race, color, religion, marital status, pregnancy, national origin, age, or ability. The Florida Equal Pay Act prohibits employers from paying employees of different genders different wages for equal work.
