Florida Hourly Paycheck Calculator
On a peninsula filled with palm trees and alligators, Florida provides a warm and adventurous home for businesses. Not to mention, the lack of state income tax on wages is an incentive for many Florida residents.
However, if you’re an employer, it’s important you are aware of the tax and paycheck laws in Florida you are required to follow.
Not quite ready to enlist the help of qualified payroll professionals? No worries—here, we’ll lay out all the state and federal taxes and paycheck rules so you can process your Florida payroll quickly and enjoy the ocean breeze.
Federal payroll taxes
Florida employers are responsible for withholding and paying the same federal payroll taxes as employers in the 49 other states.
Some taxes are paid by the employee, some by you, and some are shared between you and your employee.
|Federal Payroll Taxes|
|Paid by Employee||Paid by Employer||Paid by Employee and Employer|
|Federal Income Tax (FIT)Additional Medicare Tax||Federal Unemployment Tax (FUTA)||FICA (Social Security and Medicare)|
Federal Income Tax (FIT)
Unless exempt, all employees will need to have federal income tax withheld from their paycheck. The amount depends on several factors, including payment amount and the number of dependents.
With information from Form W-4 and some tax tables, you can calculate how much tax to withhold. However, payroll software will easily make this calculation for you.
New employees should complete a W-4 when they start work. A new form isn’t required each year, but employees should update it when their tax situation changes.
There’s no need to send the W-4s to the IRS. Hang on to them in your payroll records.
Additional Medicare Tax
Some of your employees may have to pay the Additional Medicare Tax depending on their total wages and tax filing status. Although you may not know if your employee is responsible for this tax, you must withhold it from any employee earning more than $200,000 per year. The tax rate for the Additional Medicare Tax is 0.9%.
Federal Unemployment Tax (FUTA)
Commonly referred to as FUTA, the federal unemployment tax is paid by employers to help compensate employees who become unemployed due to no fault of their own.
In 2022, the FUTA tax rate is 6% on the first $7,000 of an employee’s wages. Tax credits for paying your state unemployment tax (we’ll talk about this later) on time can reduce your federal rate to 0.6%.
Federal Insurance Contributions Act tax (FICA)
FICA is short for Federal Insurance Contributions Act. It mandates that employers and employees contribute 12.4% of an employee’s wages to fund the Social Security and Medicare programs.
Social Security tax
The employee and employer both contribute 6.2% of the employee’s wages for Social Security tax. For 2022, this tax is charged on the first $147,000 of the employee’s pay.
Both the employee and employer contribute 1.45% of the employee’s pay for Medicare. However, there is no wage cap for Medicare tax. All employee wages are subject to the 1.45% tax.
When to pay federal payroll taxes
Depending on how much tax you owe, you may have to pay your payroll taxes annually, quarterly, monthly, or semi-weekly.
|Federal Payroll Tax Payment Frequency|
|Monthly or semi-weekly||Paid by Employer||Quarterly or annually|
Federal income tax
Additional Medicare Tax
The IRS has a helpful guide to further your understanding of federal tax deposits.
How to report federal payroll taxes
Employers will need to file Form 941 each calendar quarter to summarize FICA, federal income tax, and Additional Medicare tax that was due compared with what was paid. Any shortfall must be paid, and penalties may be assessed for failing to make timely deposits.
Whether you deposit FUTA tax quarterly or annually, you’ll use Form 940 to summarize the tax you owe.
Florida Payroll Taxes and Rules
Florida Reemployment Tax
The State of Florida collects its version of an unemployment tax that it calls the reemployment tax.
Florida employers pay this tax on the first $7,000 of each employee’s wage each year. New businesses pay a 2.7% rate and pay that rate until 10 quarters have been reported. The rate is then adjusted based on the amount of benefits paid to your former employees and your payroll’s historical amount.
The Florida Reemployment Tax minimum rate for 20221 is 0.129% and can be as high as 5.4%.
Each quarter you’ll file a Form RT-6, Employer’s Quarterly Report, to report each employee’s wages and the tax that is due. This quarterly report is required even if no wages were paid or no tax was due.
Florida payroll rules
Florida is unique in many ways. Notably, it has no department of labor and few employment laws. Instead, it follows the federal rules and regulations set out by the U.S. Department of Labor.
|Minimum Wage in Florida|
|January 1, 2021||$8.56 per hour|
|September 30, 2021||$10.00 per hour|
|September 30, 2022||$11.00 per hour|
|September 30, 2023||$12.00 per hour|
|September 30, 2024||$13.00 per hour|
|September 30, 2025||$14.00 per hour|
|September 30, 2026||$15.00 per hour|
The minimum wage in Florida is adjusted annually on September 30 to reflect the inflation rate for the prior 12 months.
Within 20 days of the employee’s start date, new hires or re-hires must be reported to the Florida Department of Revenue.
Generally, businesses with four or more employees are required to have workers’ compensation insurance in Florida. There are different rules for the construction and agricultural industries.
Under the Fair Labor Standards Act, hourly non-exempt workers must be paid at least one and one-half times their regular rate of pay for any hours worked over 40 hours in a week.
Agricultural and migrant workers
The Migrant and Seasonal Agricultural Worker Protection Act requires employers to:
- Pay workers wages owed when due,
- Comply with all federal and state safety and health standards if they provide housing for migrant workers,
- Ensure all vehicles used to transport workers are insured, operated by licensed drivers, and meet all safety standards, and
- Provide written documentation of the terms and conditions of employment.
You’re now a master of Florida payroll. With Gusto’s Florida Hourly Paycheck Calculator, you can see how taxes affect your employees’ paychecks, and you’re ready to cut those checks and get to the beach.