Florida Employer Requirements: What New Businesses Must Do

When your Florida LLC hires its first employee, you take on a set of legal obligations. From tax withholding to workers’ compensation insurance, employers must comply with state and federal requirements.

This guide covers everything Florida businesses need to know about becoming an employer.

Before You Hire: Required Registrations

Federal Requirements

Employer Identification Number (EIN)

If you don’t already have one:

• Apply free at IRS.gov
• Required for all employers
• Used for federal tax reporting
• Takes 5-10 minutes online

Federal Tax Accounts

Once you have employees, you’ll:

• Withhold federal income tax
• Withhold employee portion of FICA (Social Security/Medicare)
• Pay employer portion of FICA
• File quarterly Form 941
• File annual Form 940 (FUTA)

Florida State Requirements

Reemployment Tax (Unemployment Insurance)

Florida requires employers to register with the Department of Revenue for reemployment tax (Florida’s unemployment insurance).

Register:

• Online at FloridaRevenue.com
• Required if you have employees
• You’ll receive a Florida reemployment tax account number

Initial tax rate: 2.7% for new employers (2024)

Wage base: Tax applies to first $7,000 of each employee’s wages per year

Note: This is an employer-paid tax—you don’t withhold from employees.

No State Income Tax Withholding

Florida has no state income tax, so there’s no state withholding to manage. This simplifies payroll compared to most states.

Workers’ Compensation Insurance

Who Needs It

Florida requires workers’ compensation for:

Construction industry: Even sole proprietors and LLC members working construction must be covered or have an exemption.

How to Get Coverage

Options:

1. Purchase from private insurance carrier
2. Self-insure (large employers only, approval required)

Cost factors:

• Industry classification code
• Payroll amount
• Claims history

Typical rates: $0.75 to $15+ per $100 of payroll, depending on industry.

Exemptions

Construction contractors can apply for exemption:

• Officers of corporations (up to 3)
• Members of LLCs (up to 3)
• Partners in partnerships
• Sole proprietors

Apply through Florida Division of Workers’ Compensation.

Important: Exempted individuals are NOT covered if injured. Consider this carefully.

Proof of Coverage

Florida requires employers to:

• Post notice of coverage (or exemption) at workplace
• Provide proof to contractors when requested
• Maintain coverage continuously

Verification: Anyone can verify coverage at FloridaJobs.org.

The New Hire Reporting Process

Federal Form I-9

Every employee must complete Form I-9:

• Verifies identity and work authorization
• Must be completed within 3 days of hire
• Employer must review documents
• Retain for 3 years after hire (or 1 year after termination, whichever is later)

Acceptable documents:

• US passport (List A)
• Driver’s license + Social Security card (List B + List C)
• Permanent resident card (List A)

E-Verify: Optional for most Florida employers, but federal contractors and some industries must use it.

Florida New Hire Reporting

All Florida employers must report new hires to:

Florida State Directory of New Hires

• Online: FL-NewHire.com
• Mail: Florida New Hire Reporting Center
• Fax: Available

Required information:

• Employee name, address, SSN
• Employer name, address, EIN
• Date of hire

Deadline: Within 20 days of hire

Purpose: Helps locate parents for child support enforcement.

Federal Form W-4

Every employee completes W-4:

• Determines federal income tax withholding
• Employee chooses allowances
• Updated version in use since 2020
• Keep on file

Payroll Tax Obligations

What You Withhold from Employees

What Employers Pay

Federal Tax Deposits

When to deposit depends on your tax liability:

How to deposit:

• EFTPS (Electronic Federal Tax Payment System)
• Required for most employers

Quarterly Filing: Form 941

Every quarter, file Form 941 to report:

• Wages paid
• Federal income tax withheld
• Social Security and Medicare taxes
• Deposits made

Due dates:

• Q1: April 30
• Q2: July 31
• Q3: October 31
• Q4: January 31

Annual Filing: Form 940

Report Federal Unemployment Tax (FUTA) annually:

• Due January 31
• Tax already deposited quarterly if over $500

Florida Reemployment Tax

Quarterly reporting:

• File RT-6 (Employer’s Quarterly Report)
• Due last day of month following quarter end
• Report wages and calculate tax
• Online filing available at FloridaRevenue.com

Employee vs. Independent Contractor

Why It Matters

Misclassifying employees as independent contractors creates serious problems:

• Back taxes and penalties
• Unpaid benefits
• Lawsuits
• IRS and state audits

The Test

IRS uses behavioral, financial, and relationship factors:

When in Doubt

If the answer isn’t clear:

• Get legal advice
• Consider the economic realities
• Document the relationship
• Have a written contract for contractors
• Obtain W-9 from contractors

1099 Requirements

If you pay contractors $600+ in a year:

• Issue Form 1099-NEC by January 31
• File copy with IRS
• Get W-9 before making first payment

Workplace Posting Requirements

Required Federal Posters

Required Florida Posters

Where to get them:

• Federal: Department of Labor website (free)
• Florida: Florida Department of Economic Opportunity (free)
• Combined: Commercial poster companies

Display Requirements

• Post in conspicuous location
• Accessible to all employees
• Keep current (update when laws change)

Florida-Specific Employer Rules

Minimum Wage

Florida minimum wage (2024): $13.00/hour

• Increases annually based on constitutional amendment
• Currently higher than federal minimum ($7.25)
• Tipped employees: $9.98/hour (with tip credit)

No State Income Tax

Unlike most states, Florida employers:

• Don’t withhold state income tax
• Don’t file state income tax returns
• Don’t manage state withholding forms

This simplifies payroll significantly.

At-Will Employment

Florida is an at-will employment state:

• Either party can end employment any time
• No reason required
• Some exceptions (discrimination, contracts, etc.)

Pay Frequency

Florida law requires employees be paid at least semi-monthly (twice per month).

Final Paychecks

No specific deadline in Florida law, but wages must be paid within the regular pay period.

Recordkeeping Requirements

What to Keep

I-9 Retention

Keep Form I-9 for:

• 3 years from date of hire, OR
• 1 year from termination
• Whichever is later

Best Practices

• Use payroll software with record storage
• Back up electronically
• Organize by employee and year
• Keep records accessible for audits

Payroll Solutions for Small Businesses

DIY Options

Suitable if:

• Very few employees
• Simple pay structures
• You understand the rules

Tools:

• IRS withholding calculator
• Excel/spreadsheets
• Manual deposits via EFTPS

Risk: Errors can be costly.

Payroll Software

Benefits:

• Automatic tax calculations
• Direct deposit
• Tax filing handled
• Compliance support

Payroll Services

Full-service providers:

• Handle all calculations and filings
• Manage deposits
• Provide compliance support
• Cost: $50-$200+/month

Common Employer Mistakes

1. Missing Tax Deposits

Problem: Late deposits trigger penalties and interest.

Solution: Set up automatic deposits, use payroll service.

2. Misclassifying Workers

Problem: IRS and state audits, back taxes, penalties.

Solution: Understand the rules, document relationships, get advice when unclear.

3. Incomplete I-9s

Problem: Fines up to $2,500+ per violation.

Solution: Complete within 3 days, review documents, keep records.

4. Missing New Hire Reports

Problem: Penalties for non-compliance.

Solution: Report within 20 days, make it part of onboarding process.

5. Ignoring Workers’ Comp

Problem: Penalties, personal liability for injuries.

Solution: Get coverage before hiring, verify requirements for your industry.

Hiring Your First Employee Checklist

Before Hiring

• [ ] Have EIN
• [ ] Register for Florida reemployment tax
• [ ] Get workers’ compensation insurance (if required)
• [ ] Set up payroll system
• [ ] Obtain required posters

At Hiring

• [ ] Complete Form I-9
• [ ] Complete Form W-4
• [ ] Report to Florida New Hire Directory
• [ ] Provide employee handbook (recommended)
• [ ] Document pay rate and schedule

After Hiring

• [ ] Run payroll per schedule
• [ ] Make federal tax deposits
• [ ] File quarterly reports (941, RT-6)
• [ ] File annual reports (940, W-2, W-3)
• [ ] Maintain records

Frequently Asked Questions

Do I need workers’ compensation with one employee?

In construction: yes. Other industries: not until 4 employees.

Does Florida require state income tax withholding?

No. Florida has no state income tax.

When do I report new hires?

Within 20 days of the hire date.

What if I only hire contractors?

You still need to verify they’re truly contractors (not misclassified employees), collect W-9s, and issue 1099s.

Can I do payroll myself?

Yes, but errors are costly. Most small businesses benefit from payroll software or services.

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