Florida employer requirements boil down to a few registrations before your first hire and a steady rhythm of payroll filings afterward. Before anyone starts, you need an EIN, a Florida reemployment tax account and, depending on your industry and headcount, workers’ compensation insurance. After that, it’s withholding, deposits, quarterly reports and keeping the paperwork. Florida has no state income tax, which makes payroll here simpler than in most states.
What do you need before you hire?
An EIN. Every employer needs one for federal tax reporting. If your LLC doesn’t have one yet, apply free at IRS.gov. It takes 5-10 minutes online.
A Florida reemployment tax account. Reemployment tax is Florida’s name for unemployment insurance. Register with the Department of Revenue online at FloridaRevenue.com, and you’ll get a Florida reemployment tax account number. New employers paid an initial rate of 2.7% (2024) on the first $7,000 of each employee’s wages per year. It’s paid by you, the employer. You don’t withhold it from employees.
Workers’ compensation coverage, if it applies to you. More on this below. Get it in place before the first hire if your business needs it.
Once you have employees, the federal side kicks in too: you’ll withhold federal income tax and the employee’s share of FICA (Social Security and Medicare), pay the employer’s share, file Form 941 every quarter and Form 940 (FUTA) every year.
When does a Florida employer need workers’ comp?
| Business type | Coverage required at |
|---|---|
| Construction | 1 or more employees (including owners) |
| Non-construction | 4 or more employees |
| Agricultural | 6 or more regular employees, or 12+ seasonal workers |
Construction is the strict one. Even sole proprietors and LLC members working in construction must be covered or hold an exemption. Construction contractors can apply for an exemption through the Florida Division of Workers’ Compensation for corporate officers (up to 3), LLC members (up to 3), partners and sole proprietors.
Think hard before taking an exemption. An exempt person isn’t covered if they’re injured on the job, and construction is where people get hurt.
Most businesses buy coverage from a private carrier (large employers can self-insure with approval). What you pay depends on your industry classification code, your payroll and your claims history. Typical rates run from $0.75 to $15+ per $100 of payroll, depending on industry.
Skipping required coverage brings penalties and can leave you personally liable for injuries. Post the notice of coverage (or exemption) at your workplace, keep coverage in force continuously, and show proof when a contractor asks. Anyone can verify coverage at FloridaJobs.org.
What paperwork does each new hire need?
Form I-9. Every employee completes one to verify identity and work authorization, and it must be done within 3 days of hire. You have to review their documents yourself. A US passport or permanent resident card (List A) works on its own, or a driver’s license plus a Social Security card (List B plus List C). E-Verify is optional for most Florida employers, but federal contractors and some industries must use it.
Form W-4. This sets federal income tax withholding. The current version has been in use since 2020. Keep each employee’s W-4 on file.
Florida new hire report. Report every new hire to the Florida State Directory of New Hires within 20 days of hire, online at FL-NewHire.com, by mail to the Florida New Hire Reporting Center, or by fax. You’ll give the employee’s name, address and SSN, your business name, address and EIN, and the hire date. The state uses it to locate parents for child support enforcement.
What payroll taxes do you withhold and pay?
| Tax | Withheld from employee | Paid by employer | Wage base |
|---|---|---|---|
| Federal income tax | Based on W-4 | – | All wages |
| Social Security | 6.2% | 6.2% | $168,600 (2024) |
| Medicare | 1.45% | 1.45% | No limit |
| Additional Medicare | 0.9% over $200,000 | – | Over $200,000 |
| FUTA (federal unemployment) | – | 6.0% (5.4% credit usually applies) | $7,000 |
| Florida reemployment tax | – | 2.7% (new employers) | $7,000 |
How often do you deposit federal taxes?
Deposits go through EFTPS (the Electronic Federal Tax Payment System), which most employers are required to use. Your schedule depends on your tax liability:
| Liability | Deposit schedule |
|---|---|
| $50,000 or less | Monthly |
| Over $50,000 | Semi-weekly |
| $100,000+ accumulated | Next business day |
What do you file, and when?
| Form | What it reports | Due |
|---|---|---|
| Form 941 | Wages, federal income tax withheld, Social Security and Medicare, deposits made | Q1 April 30, Q2 July 31, Q3 October 31, Q4 January 31 |
| Form 940 | FUTA for the year (deposit quarterly if you owe over $500) | January 31 |
| RT-6 (Employer’s Quarterly Report) | Florida wages and reemployment tax | Last day of the month after each quarter ends |
You can file the RT-6 online at FloridaRevenue.com. At year-end you’ll also file W-2s and the W-3.
Late deposits trigger penalties and interest. Set deposits up to run automatically, or let a payroll service handle them.
Is your worker an employee or a contractor?
Get this wrong and you face back taxes, penalties, lawsuits and audits. The IRS looks at behavioral, financial and relationship factors:
| Question | Employee | Contractor |
|---|---|---|
| Who controls how the work is done? | Employer | Worker |
| Who provides tools and equipment? | Employer | Worker |
| Is the relationship ongoing? | Usually | Project-based |
| Can the worker make a profit or loss? | No | Yes |
| Are benefits provided? | Often | No |
If it’s not clear, look at the economic reality of the relationship and get legal advice. For real contractors, have a written contract and collect a W-9 before the first payment. If you pay a contractor $600+ in a year, issue Form 1099-NEC by January 31 and file a copy with the IRS.
Which workplace posters are required?
Federal law requires the Fair Labor Standards Act (minimum wage), Equal Employment Opportunity, OSHA, USERRA (military leave rights) and Employee Polygraph Protection Act posters, plus FMLA if you have 50+ employees. Florida adds posters for the Florida minimum wage, workers’ compensation, reemployment assistance and child labor law.
The federal posters are free from the Department of Labor website, and the Florida ones are free from FloridaCommerce (formerly the Florida Department of Economic Opportunity). Commercial poster companies sell combined versions. Hang them somewhere every employee can see them, and replace them when the laws change.
What’s different about employing people in Florida?
Minimum wage. Florida’s minimum wage was $13.00 an hour in 2024, with tipped employees at $9.98 an hour after the tip credit. It increases every year under a constitutional amendment and is well above the federal $7.25, so check the current rate before you set pay.
No state income tax. You don’t withhold state income tax, file state income tax returns or manage state withholding forms.
At-will employment. Either side can end employment at any time without a reason, with exceptions for things like discrimination and contracts.
Final paychecks. Florida law sets no specific deadline for a final paycheck. Paying it on the next regular payday is the safe approach.
What records do you have to keep?
| Records | How long |
|---|---|
| Payroll records | 3 years minimum |
| Hiring records | 1 year minimum |
| Time and pay records | 2-3 years |
| Workers’ comp records | 5 years |
| Form I-9 | 3 years from hire or 1 year after termination, whichever is later |
Payroll software with built-in record storage makes this mostly automatic.
Should you run payroll yourself?
With very few employees and simple pay, you can do it with the IRS withholding calculator, a spreadsheet and manual EFTPS deposits. But errors are costly, and I-9 mistakes alone can bring fines up to $2,500+ per violation. Most small businesses are better off with payroll software, which calculates taxes, runs direct deposit and handles the filings. Gusto is user-friendly for small businesses, QuickBooks Payroll fits if you already use QuickBooks, ADP Run suits growing businesses, Paychex covers full-service needs and Wave is the budget option. Full-service payroll providers that handle every calculation, deposit and filing typically cost $50-$200+ a month.
Frequently asked questions
Do I need workers’ compensation with one employee?
In construction, yes. In other industries, not until you have 4 employees.
What if I only hire contractors?
You still need to make sure they’re really contractors and not misclassified employees, collect W-9s and issue 1099s.
Set up the business before the payroll
Hiring is much easier when the entity, EIN and bank account are already in place. IncCraft handles your Florida LLC formation for $0 + the $125 state filing fee.
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