Month-end close: payroll tax in Florida

Florida has no state income tax to withhold, and its one state payroll tax, reemployment tax, is filed quarterly even with no employees.

This is part of the payroll checklist. Florida's state payroll tax is reemployment tax, its state unemployment tax, filed with the Florida Department of Revenue (DOR) [2]. Do the federal steps first.

Rate. There is no state income tax withholding. Reemployment tax is set by the rate notice (RT-20) the DOR mails. A new employer starts at 2.7%, and 2026 rates run from 0.1% to 5.4%, on the first $7,000 paid to each employee in a year.

Filing. The RT-6 every quarter, even with no employees. It summarizes gross wages, wages over $7,000 and taxable wages, and lists each employee's wages.

Due. April 30, July 31, October 31 and January 31.

The trap. A corporate officer who works for the corporation is an employee whether or not they're paid, so the owner goes on the RT-6. A late RT-6 costs $25 for each 30 days, and a wrong Social Security number costs $50 or 10% of any tax due, whichever is greater.

The month-end steps

1. State income tax withholding: none. Florida's Constitution bars the state from taxing the income of residents, beyond an amount that can be credited against a similar federal tax [1], so there's no state income tax to withhold from wages. Done when no state income tax is set up in the client's payroll.
2. Reemployment tax. An employer becomes liable once it pays at least $1,500 in wages in a calendar quarter, among other tests, such as being liable for federal unemployment tax. A new business reports its first employment in the month after the quarter it begins [2]. Take the client's rate from its Reemployment Tax Rate Notice (RT-20), which the DOR mails just before the new rate takes effect. A protest must be in writing within 20 days of the mailing [2]. For reference, a new employer starts at 2.7%, and 2026 rates run from 0.1% to 5.4% [3]. The tax applies to the first $7,000 paid to each employee in a calendar year [2]. Done when the reemployment tax liability account equals the month's taxable wages times the RT-20 rate.
3. The quarterly return, the RT-6. File it every quarter, even with no employees [2]. Its tax portion summarizes gross wages, wages over the $7,000 limit and taxable wages. Its wage portion lists each employee's name, Social Security number, and gross and taxable wages [2].

A late RT-6 costs $25 for each 30 days, or part of 30 days, that it's late [2]. An erroneous, incomplete or insufficient report, including a wrong Social Security number, costs $50 or 10% of any tax due, whichever is greater [4]. Done when the RT-6's gross wages tie to the quarter's payroll register, its taxable wages equal gross wages less each employee's wages over $7,000 for the year, its tax equals taxable wages times the RT-20 rate, and the liability account is at zero once it's paid.

4. Owner and officer wages. A corporate officer who performs services for the corporation is an employee, whether or not they're paid. Pay other than dividends and director's fees is presumed to be wages. For an S corporation, all or part of the distributions to a shareholder who works in the business may count as wages [2]. Ask the client's accountant how much of an owner's pay to report. Done when every officer who works in the business is on the RT-6.
5. Other state payroll taxes. Reemployment tax is the only state payroll tax in the DOR guides we read [2]. Ask the client's accountant whether any local or industry levy applies. Done when the accountant's answer is on file.