Florida Payroll Services and Regulations

Gusto Editors

Running payroll for your company requires more than just paying your employees on time. Business owners in Florida need to understand taxes, benefits, overtime rules, and other payroll regulations. 

At Gusto, we’ve put together a detailed guide on what you should know before your Florida business issues its next paychecks. Read on to learn about key Florida regulations and rules and how Gusto can help you properly tend to it all.

Key Florida regulations payroll professionals need to know

Florida minimum wage

At the start of 2020, the minimum hourly wage in Florida increased from $8.46 to $8.56. Tipped workers must earn a base wage of at least $5.54 per hour. The youth minimum wage is $4.25/hour. The minimum wage is adjusted each January by the Consumer Price Index which is determined on September 30.

Florida pay stubs

Florida has no requirements governing pay stubs. The Fair Labor and Standards Act (FLSA) does however require employers to keep an accurate record of hours worked and wages paid to employees.

Florida pay periods

Florida has no laws regarding how often businesses must pay their employees. However, federal law requires that employers establish a pay period and pay employees on a consistent basis

Determining time worked in Florida

While Florida has no state laws explicitly stating the definition of time worked, the state generally follows the definition of “hours worked” and “workweek” that the federal Fair Labor Standards Act (FLSA) provides.

Florida overtime pay and tracking

Just as with the definition of “hours worked” and “workweek,” Florida looks to the FLSA for its overtime pay and tracking rules. That means that, just as in the vast majority of states, Florida employers must pay nonexempt employees time and a half for all hours of work over 40 hours performed in a workweek.

Florida final wage payment

Florida does not have any laws about final wage payments. If you wind up letting an employee go or an employee leaves your company voluntarily, there’s no deadline in Florida by which you have to pay them the remainder of what you owe them.

Florida income tax withholding

Unlike the vast majority of states, Florida doesn’t charge its own personal income tax. Additionally, no individual municipality in Florida charges income tax. 

Florida payroll tax for employers

In Florida, new employers pay a 2.7% unemployment tax on each employee’s first $7,000 in wages. After your business has operated for more than 10 quarters, your payroll tax can vary from 0.1% to 5.4%, but no matter the rate, only the first $7,000 in wages will be taxed.

Additionally, Florida employers must pay the following federal payroll taxes:

  • Social Security
  • Medicare
  • Federal Unemployment Tax Act (FUTA)

Florida benefits

Like all American workers, Florida employees are entitled to Social Security benefits and the provisions outlined in the Family and Medical Leave Act (FMLA). Additional state benefits include:

  • Workers’ compensation: With few exceptions, all Florida businesses must provide workers’ compensation insurance.
  • Health insurance: Under the federal Patient Protection and Affordable Care Act (ACA), all employers with at least 50 full-time (or equivalent) workers must provide health insurance. Companies that fail to meet this provision may face a tax penalty.
  • Overtime pay: With limited exceptions, Florida businesses must pay workers time and a half when they work more than 40 hours in a workweek.
  • Domestic violence leave: Florida employers must provide up to three days of leave per year to address matters related to domestic violence. 
  • Military leave: An employee who takes state or federal military leave must be rehired for the same job once their military duties are complete. 
  • Jury duty: Any employees called for jury duty must be given time off and cannot be dismissed for fulfilling their civic duty. Employers must pay full-time, part-time, casual, or temporary workers with regularly scheduled hours their standard wages in full for the first three days of jury duty. 

Why Gusto is a great Florida payroll company

Gusto offers Florida business owners full-service payroll solutions, including automated withholding, local and state tax calculations, and payment right from the platform. We make the appropriate withholdings from your workers’ paychecks,and we’ll automatically pay those taxes and file tax forms, including Forms W-2, 1099, 8974, 940, 941, and 944. We charge a base rate plus an additional small amount per employee with no hidden fees. Learn more about our pricing plans.

In addition to payroll, Gusto helps you offer more than 3,500 health insurance plans and additional benefits such as commuter benefits, retirement plans, and more for your team. 

We’ve built your state, jurisdiction, and federal payroll duties into our platform, and we update our system regularly to keep our tax calculations accurate and up-to-date. Your employees can also access the tools and information they need on their own.

Gusto feels like an extension of my team. I can rely on them and they just do things without me asking.

Kelly Trace, Owner of Reach

1. Gusto offers unlimited payrollSome platforms limit the number of times you can run payroll, but not us. With Gusto, there’s no limit to how many payrolls you can run. With just a few clicks, you can run payroll for your entire team—full-time employees, independent contractors, hourly workers, and even out-of-state remote employees.

2. Tax filings and payments are completed with just a few clicks

Gusto works seamlessly with the appropriate Florida local, state, and federal authorities to ensure your business’s tax obligations are met accurately on time. When your year wraps up, it’s easy to gather and submit your tax liabilities and make the proper payments straight from our platform.

3. File forms and print reports straight from our system

Stop scanning, printing, and faxing. Use Gusto to fill out and e-file quarterly and year-end tax forms as well as W-2s, 1099s, and so many other key forms, not to mention customized payroll reports. We’ll never charge you extra for generating forms, and we’ll forward copies of your W-2s and 1099s to your employees. 

4. Offer employees the benefits they want and need

With Gusto, you can do more than just payroll. You can offer benefits like health insurance, 401(k) retirement plans, flexible spending accounts, and commuter benefits for your team. We keep up with benefits compliance, too. Learn more about our benefit offerings.

Frequently asked questions about payroll in Florida

How often do Florida employees get paid?

Florida doesn’t set rules on how frequently employees are paid.

How much does an employer pay in payroll taxes in Florida?

Unemployment tax rates for employers in Florida depend on several factors including the business’s size and age. The tax starts at 2.7% for the first 10 quarters, then ranges from 0.1% to 5.4% thereafter. No matter what, the tax rate only applies to an employee’s first $7,000 in wages. Like all states, Florida businesses must pay Social Security, Medicare, and federal unemployment taxes.

How much is Florida state unemployment tax?

Florida state unemployment tax is 2.7% for businesses that have existed for 10 or fewer quarters. Unemployment tax rates range from 0.1% to 5.4% from then on and are applied to the first $7,000 of an employee’s wages.

Gusto Editors Gusto Editors, contributing authors on Gusto, provide actionable tips and expert advice on HR and payroll for successful business management.
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