There are many crucial responsibilities that employers have, including taxes. Businesses must be aware of their Florida employer payroll tax obligations to the Internal Revenue Service (IRS) and the Florida Department of Revenue (DOR). Failing to meet these obligations, even if you aren’t aware of them, can have serious consequences.
What Are the Obligations of Employers in Their Florida Payroll Tax?
The IRS collected $565.1 billion in business income taxes in fiscal year 2024, including S17.9 billion from business income taxes in Florida. From 2024 to 2025, the Florida DOR collected $5.8 billion from corporate taxes in the state.
Businesses and employers have to deposit their payroll taxes multiple times a year. These taxes are generally a set percentage of the gross payroll. This includes state and federal taxes, such as:
Federal Insurance Contribution Act (FICA) Taxes
FICA taxes are federal taxes that both employers and employees are required to pay. They include:
- Social Security tax: This is a disability, survivor, and old-age insurance tax, providing benefits for employees who cannot work or their surviving families. The employer and employee halves are each 6.20%. There is a maximum employee wage that can be taxed, called the wage base limit. Wages above $184,500 a year are not subject to the Social Security tax, as of 2026.
- Medicare tax: This is a hospital insurance tax. The employer and employee halves of Medicare insurance are 1.45% each. If an employee has wages over $200,000 a year, then there is an excess Medicare tax on the employee’s half of 0.90%.
Employers pay their half out of the payroll, and can withhold the employee’s half from the employee’s payroll to pay it. If the employer does not withhold the employee’s half of FICA taxes, the employee is responsible for paying them.
Self-employed workers pay both the employer and the employee portion of FICA taxes from their paychecks.
Federal Corporate Income Taxes
Businesses must pay federal corporate income taxes by filing a yearly tax return, unless they are partnerships. Each business pays the taxes on its income as it earns or receives it each year. The business structure impacts the form filed and the taxes that must be paid:
- Sole proprietor: These businesses may have to pay an income tax, self-employment tax, estimated tax, employment tax, and excise tax.
- Partnership: These businesses must file an annual income information return, as well as employment and excise taxes.
- S or C corporation: These businesses may need to file an income tax, employment tax, estimated tax, and excise tax. Their forms are especially those used for corporate filing.
Federal Unemployment Insurance Taxes (FUTA)
FUTAs are meant to provide benefits for workers who suddenly have their hours reduced or have lost their jobs. Employers generally have to pay both the state and federal unemployment taxes if they either pay over $1,500 in employee wages in any quarter or they had an employee any day of the week in 20 weeks out of the year.
FUTA taxes are set at 6%, applying to the first $7,000 of wages paid to each employee. If a business pays Florida reemployment taxes on time, the rate could be reduced by 0.60% to a rate of 5.4%.
Florida Corporate Income Taxes
There is no personal income tax in Florida, but businesses are still required to pay a corporate income tax. The corporate income tax in Florida is 5.5% of a business’s Florida net income. It applies to all corporations that do business, earn income, or exist in Florida.
Florida Unemployment Taxes
The Florida unemployment tax, called a reemployment tax, begins at 2.7% for employers who are newly liable for the tax. This rate lasts for 10 reporting quarters. Then, it can change depending on the value of the taxable payroll and the total benefits that were charged. The reemployment tax has a rate cap at 5.4% for most employers, and cannot be lower than 0.1%.
FAQs About Florida Employer Payroll Tax Obligations Law
What Payroll Taxes Do Employers Pay in Florida?
Employers in Florida pay many different types of state and federal taxes for their payroll taxes, each of which is a percentage of their total payroll. This includes corporate income taxes and unemployment taxes, both at the state and federal levels. It also includes Social Security and Medicare FICA taxes. If employers don’t uphold their obligations, they can face civil penalties or more serious consequences.
What Taxes Does the Employer Pay on Behalf of an Employee in Florida?
The employer pays FICA taxes on behalf of their employee in Florida. FICA taxes have an employer and employee half that must be paid for Medicare and Social Security taxes. Usually, the employer withholds these taxes from the employee’s paycheck, paying the employee’s half of FICA. If the employer fails to withhold the employee’s half of FICA, the employee must pay it. The employer is also responsible for their own half of FICA taxes.
Why Is It Helpful to Hire a Payroll Tax Lawyer in Florida?
It is helpful to hire a Miami IRS tax attorney in Florida because you can be more confident that you are meeting your obligations. A payroll tax lawyer can help you file on time and accurately, potentially avoiding costly mistakes, and can help you legally lower your tax burden. A payroll attorney can also help if you are involved in an issue with a tax agency, including if your business is being audited or if you need to request penalty abatement.
What Are Common Violations of Payroll Taxes?
Common violations of payroll taxes include failing to pay taxes according to the correct pay period schedule, or failing to pay the taxes in full due to math errors on calculations or other errors. Other violations include misclassifying employees as independent contractors, which can illegally lower the tax burden of an employer. Employers may also forget to pay certain taxes, such as the state unemployment tax, in addition to the federal one.
Work With an Experienced Florida Payroll Tax Attorney
You have a lot of responsibilities as a business owner. Working with a payroll tax lawyer helps you manage your tax obligation while lowering your risk of doing it wrong. Get in touch with TaxSmith, LLC, and tap into more than a decade of Florida tax law experience.
