When you hire employees in Florida, you become responsible for reemployment tax—Florida’s version of unemployment insurance tax. This tax funds benefits for workers who lose their jobs through no fault of their own.
Understanding your reemployment tax obligations helps you budget correctly, stay compliant, and avoid penalties. This guide covers everything Florida employers need to know.
What Is Florida Reemployment Tax?
Reemployment tax (formerly called unemployment compensation tax) is a state payroll tax paid by employers. It funds Florida’s unemployment insurance program, which provides temporary income to eligible workers who lose their jobs.
Key points:
- Paid by employers only—not deducted from employee wages
- Funds the state unemployment trust fund
- Rate varies by employer based on experience rating
- Similar to federal unemployment tax (FUTA) but separate
Who Must Pay Reemployment Tax?
You Must Register If You:
Meet the wage threshold:
- Pay $1,500 or more in wages in any calendar quarter, OR
Meet the employee threshold:
- Have one or more employees for any portion of a day during 20 different weeks in a calendar year
Acquire an existing business:
- Take over all or part of a business that was already subject to reemployment tax
Agricultural employers:
- Pay $10,000 or more in cash wages in any calendar quarter, OR
- Have 5 or more workers for any portion of a day during 20 different weeks
Domestic employers:
- Pay $1,000 or more in cash wages in any calendar quarter
Exempt from Reemployment Tax
- Sole proprietors with no employees
- Services performed by the owner of an LLC taxed as a sole proprietorship
- Corporate officers who are the sole shareholders and employees (in certain situations)
- Some nonprofit and governmental entities
Tax Rates
New Employer Rate
New employers in Florida start with an assigned tax rate. For most new employers:
Initial rate: 2.7% of taxable wages
This rate applies until you have enough employment history to calculate an experience rate (typically after 10 completed calendar quarters).
Experienced Employer Rate
After establishing history, your rate is calculated based on:
- Your account’s history of unemployment claims
- The state unemployment trust fund balance
- Industry classification
Rate range: 0.1% to 5.4% (rates can vary based on fund status)
Better experience = Lower rate: Employers with few unemployment claims pay lower rates. High turnover and many claims lead to higher rates.
Taxable Wage Base
Reemployment tax applies only to the first $7,000 in wages per employee per year.
Example:
- Employee salary: $50,000/year
- Taxable wages: $7,000 (first $7,000 only)
- Tax at 2.7%: $189 per employee per year
After an employee’s wages exceed $7,000 for the year, no additional reemployment tax is due for that employee.
How to Register
Online Registration
Register through the Florida Department of Revenue:
- Go to floridarevenue.com
- Select “Register a Business”
- Create an account or log in
- Select “Employer/Reemployment Tax” as the registration type
- Complete the application with business and employee information
- Submit
Information Required
Business information:
- Legal business name and DBA (if applicable)
- Federal EIN
- Business address
- Type of business entity
- Date you became liable (first payroll or acquisition date)
- Industry classification (NAICS code)
Owner/officer information:
- Names, SSNs, and addresses of owners/officers
- Ownership percentages
Employment information:
- Number of employees
- Expected quarterly wages
- Pay frequency
Timing
Register within 10 days of becoming liable. Late registration can result in penalties.
Quarterly Filing and Payment
Form RT-6: Employer’s Quarterly Report
Every quarter, you must file Form RT-6, which reports:
- Total wages paid to all employees
- Taxable wages (wages up to $7,000 per employee)
- Tax due
- Employee names, SSNs, and individual wages
Filing Deadlines
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Jan 1 – Mar 31 | April 30 |
| Q2 | Apr 1 – Jun 30 | July 31 |
| Q3 | Jul 1 – Sep 30 | October 31 |
| Q4 | Oct 1 – Dec 31 | January 31 |
Electronic Filing Required
Most employers must file and pay electronically through:
- FloridaRevenue.com
- Approved third-party software
Payment Methods
- ACH debit (direct withdrawal from your bank account)
- ACH credit (you initiate payment from your bank)
- Credit card (fees apply)
Calculating Your Tax
Basic Calculation
Quarterly tax = Taxable wages × Tax rate
Example
ABC Company LLC:
- 5 employees
- Q1 wages per employee: $15,000, $12,000, $8,000, $6,000, $5,000
- Tax rate: 2.7%
| Employee | Total Wages | Taxable Wages (max $7,000) |
|---|---|---|
| 1 | $15,000 | $7,000 |
| 2 | $12,000 | $7,000 |
| 3 | $8,000 | $7,000 |
| 4 | $6,000 | $6,000 |
| 5 | $5,000 | $5,000 |
| Total | $46,000 | $32,000 |
Tax due: $32,000 × 2.7% = $864
In Q2, employees 1-3 have already exceeded $7,000, so no additional taxable wages for them. Only employees 4 and 5 have remaining taxable wages.
Managing Your Tax Rate
Your experience rating directly affects your tax rate. Here’s how to keep rates low:
Minimize Unemployment Claims
- Hire carefully to reduce turnover
- Document performance issues before termination
- Understand that voluntary quits and terminations for misconduct may not affect your account (but investigate claims promptly)
Respond to Benefit Claims
When a former employee files for unemployment:
- You receive notification from the Department of Economic Opportunity
- Respond by the deadline (typically 15 days)
- Provide relevant documentation
- If the employee was terminated for misconduct or quit voluntarily, explain the circumstances
Failing to respond can result in benefits being paid against your account.
Review Your Rate Notice
Each year you receive a rate notice showing your new rate. Review it for accuracy. You can protest if you believe the rate is incorrect.
Reemployment Tax vs. Federal Unemployment Tax (FUTA)
| Feature | Florida Reemployment Tax | FUTA |
|---|---|---|
| Paid to | Florida DOR | IRS |
| Tax rate | 0.1% – 5.4% | 6.0% (0.6% after state credit) |
| Wage base | First $7,000 | First $7,000 |
| Filing frequency | Quarterly | Annually (Form 940) |
| Credit | N/A | Credit for state tax paid |
FUTA credit: When you pay Florida reemployment tax timely, you receive a credit against federal FUTA tax, reducing the effective FUTA rate from 6.0% to 0.6%.
Record Keeping Requirements
Maintain records for at least 5 years:
- Employer’s quarterly reports filed
- Total wages paid per quarter
- Taxable wages per employee per quarter
- Tax payments made
- Employee information (names, SSNs, addresses)
- Dates of hire and separation
- Reason for separation
Penalties and Interest
Late Filing
Penalty: $50 or 10% of tax due, whichever is greater
Late Payment
Penalty: 10% of tax due Interest: Varies; calculated from due date
Failure to File
Continued failure to file can result in:
- Estimated assessments
- Collection actions
- Criminal penalties for willful failure
Underreporting
Penalty: 10% of additional tax due Interest: From original due date
Common Questions
Do I Pay Reemployment Tax on Myself?
Sole proprietors and single-member LLC owners: No. You’re not an employee of your own business.
S corporation shareholders who work in the business: Yes. You must take reasonable salary and pay employment taxes including reemployment tax.
LLC members in a multi-member LLC: Generally no, unless you’ve elected corporate taxation.
What About Independent Contractors?
Independent contractors are not employees. You don’t pay reemployment tax on payments to contractors. However, if the contractor should actually be classified as an employee, you’re liable for unpaid taxes.
Can I Opt Out?
No. Reemployment tax is mandatory for employers meeting the thresholds. You cannot opt out or waive coverage.
What If My Business Has No Employees for a Quarter?
You must still file a “zero wage” report showing no wages were paid. Failure to file results in penalties even if no tax is due.
Industry-Specific Considerations
Construction Industry
Construction employers often have higher rates due to industry volatility. Proper documentation of subcontractor relationships is essential to avoid misclassification issues.
Seasonal Businesses
Seasonal employers may file in quarters with wages and file zero-wage returns in off-season quarters. Your rate is still calculated based on claims against your account.
Staffing Agencies
The staffing agency (not the client company) is typically the employer responsible for reemployment tax on placed workers.
Getting Help
Florida Department of Revenue
- Website: floridarevenue.com
- Phone: (850) 488-6800
- Handles registration, filing, and payment questions
Department of Economic Opportunity
- Website: floridajobs.org
- Handles unemployment claims and employer responses
Summary
Florida reemployment tax is a mandatory employer tax that funds unemployment benefits. Key points:
- Register when you pay $1,500+ in a quarter or have employees 20 weeks
- New employer rate is typically 2.7%
- Tax applies to first $7,000 per employee per year
- File quarterly via Form RT-6
- Respond promptly to unemployment claims to protect your rate
IncCraft helps Florida business owners understand their employer obligations from the start. Our LLC formation services include guidance on employment tax registration and compliance.
Get started with your Florida LLC today.