Understanding the Florida Payroll Tax Registration Process for Entities
Like most states in the U.S., Florida requires employers to pay payroll taxes on behalf of their employees. Although Florida does not impose an income tax, entities must pay the state unemployment insurance tax. Organizations are required to register their payroll tax account and report the necessary information to the state regulatory authority to fulfill this responsibility.
While managing this process for a single company is feasible, it becomes increasingly complex when dealing with multiple entities. In such cases, employers must navigate different requirements for payroll tax accounts and stay on top of their state filings and tax regulations.
As such, businesses often partner with service providers like Harbor Compliance, which can assist in setting up payroll tax accounts and provide software solutions to track tax filings.
In this guide, we’ll explain the Florida payroll tax registration process and show how Harbor Compliance’s Payroll Tax Registration Service can assist your entity.
What Are the Payroll Taxes in Florida?
Payroll taxes are the dues employers remit to the government on behalf of their employees to ensure that both the entity and its workers contribute to federal and state programs. In the U.S., there are typically two main types of payroll taxes that employers must manage:
- Wage withholding tax— This is a portion of an employee’s wage that the employer withholds to cover income taxes. The employer is responsible for forwarding State unemployment insurance tax— This tax is paid entirely by the employer to provide benefits for employees who lose their jobs through no fault of their own. It ensures eligible employees can receive financial assistance while looking for work.
- State unemployment insurance tax— This tax is paid entirely by the employer to provide benefits for employees who lose their jobs through no fault of their own. It ensures eligible employees can receive financial assistance while looking for work.
Florida does not have an income withholding tax— the primary payroll tax employers are expected to pay is the reemployment tax, also known as the unemployment insurance tax.
What Are the Requirements for the Florida Payroll Tax Registration Process?
In Florida, all for-profit entities must open a payroll tax account for reemployment tax if they can be classified into one of the following:
- Employers who have paid $1,500 or more in wages during the current or previous calendar year
- Employers who employed one or more individuals for at least 20 different weeks in the current or previous calendar year. These weeks can be full-time or part-time
- Agricultural employers who engage at least five workers for a portion of a day or a full day during any 20 weeks in a calendar year, or have a $10,000 cash payroll in any calendar quarter
- Indian tribe or tribal unit
- Liable for federal unemployment tax
- All or part of a liable business purchased which meets the liability criteria
- Joint, county, city, or state government unit
- Previously liable for reemployment tax in Florida
- College club or private home that paid more than $1,000 cash in a quarter for domestic services in a calendar year
Additionally, nonprofits that employ more than four workers for any portion of a day in 20 calendar weeks during the current or preceding calendar year are also liable for the reemployment tax. The only exceptions to this are churches and church schools.
Nonprofits can choose between these two methods of payment for the reemployment tax:
- Contributing employers—These employers submit quarterly reports and pay the taxes due by applying their tax rate to the taxable wages they pay each quarter.
- Reimbursing employers—These employers repay the Florida Unemployment Compensation Trust Fund directly for any unemployment benefits paid out on behalf of their employees.
How To Complete the Florida Payroll Tax Registration Process
The Florida Department of Revenue is the regulatory authority responsible for overseeing the state's payroll tax registration process. Employers looking to register their payroll tax accounts can choose between two methods:
- Online registration—The quickest way to register is through the Florida Department of Revenue’s online portal. This method allows for faster processing and easier access to your account information.
- Mail-in registration—If you prefer to submit your application by mail, you must first download the Florida payroll tax form from the Department of Revenue’s website. Afterward, you will be required to fill out the form with the necessary information.
Florida Payroll Tax Registration Process—Required Information
When registering for payroll taxes in Florida, it’s important to understand that the process also includes registering for other taxes, such as the sales and use tax. This is because the state uses the Florida Business Tax Application form (DR-1) to consolidate tax registrations into a single process.
Regardless of whether you choose to register by mail or online, you will be required to provide the following details during Florida’s tax registration process:
- Identification number
- Reason for applying
- Business details
- Ownership details
- Reemployment tax details
Identification Number
Entities are required to provide the following identification numbers:
- Federal Employer Identification Number (FEIN)
- Florida Business Partner Number
- County Control Number, from the county you report taxes to
U.S. employers who are not required by the IRS to secure a FEIN must provide their Social Security number (SSN), while non-U.S. employers are to provide their visa numbers instead.
Reason for Applying
When completing the Florida Business Tax Registration form, you must specify the reason for filing, which typically includes:
- Entities who have a Florida-registered business and are applying for a new location in Florida
- Entities who are commencing a new taxable activity at a previously registered location
- Entities who are relocating a Florida-registered business to a different county in the state
- Entities that are acquiring a new business
Business Details
The Department of Revenue requires employers to provide the following details for the businesses they wish to open payroll tax accounts for:
- Business name, including “Doing Business As” (DBA) name
- Location
- Mailing address
Employers must also supply the six-digit North American Industry Classification System (NAICS) code and state the exact nature of their business. They are also expected to specify how long their entity is open if they only operate during a portion of a calendar year.
Ownership Details
Entities must specify their ownership form and provide the names and addresses of the business owners and members. Additionally, organizations that have recently changed ownership or acquired a new business must indicate this information during registration.
Reemployment Tax Details
To complete the reemployment tax registration, organizations must supply these additional details:
- Their Department of Business and Professional Regulation (DBPR) license number
- The number of leased employees
- Employment type
- The date of the leasing agreement
- The locations in Florida where your entity has employees
- Their payroll tax registration agent
If you’re submitting the application by mail and would like to enroll to pay and file electronically, you must provide your contact person’s name and mailing address and your entity’s bank information.
Streamline Your Florida Payroll Tax Registration Process With Harbor Compliance
When registering for a payroll tax account in Florida, you’ll be required to input numerous details. This process can be handled independently if you’re only registering for a single entity. However, when managing multiple entities, the complexity increases significantly. Also, before registering a payroll tax account, you must first obtain a FEIN.
Rather than navigating this process alone, from securing your FEIN to opening a payroll tax account, consider partnering with Harbor Compliance. We specialize in assisting entities with their regulatory obligations.
Our Payroll Tax Registration Service can help you efficiently set up your account and assist with obtaining your Employer Identification Number (EIN) if needed. Simply provide us with the required details, and we will manage the entire process for you, ensuring full compliance and efficiency.
Effortless Payroll Tax Monitoring With Harbor Compliance’s Tax Manager
In addition to setting up payroll tax accounts, entities must continuously monitor tax regulations. Harbor Compliance offers support in tracking tax registrations through Tax Manager, a module from our proprietary Software Suite. This tool allows you to:
- Track federal, state, and local tax registrations and exemptions
- Securely store your payroll, sales, and corporate income tax account information
- Easily access tax identification numbers and other key information
How To Order Harbor Compliance Tax Management Solutions
If you’d like to partner with us to set up your Florida payroll tax account, you can order our services by following these steps:
- Visit Harbor Compliance’s Payroll Tax Registration page.
- Select Order Online.
- Fill out the form with your contact and business details.
- Submit your order.
Additionally, if you’re interested in using our Tax Manager module, you can schedule a demo session with our team.
Additional Services Harbor Compliance Offers
Beyond our Payroll Tax Registration service and Software Suite, we provide additional solutions to help entities maintain good standing in the state where they operate. The table below outlines the services we offer:
| Service Category | Service |
|---|---|
| Business licensing support | We assist organizations in securing general business licenses and industry-specific permits, such as those required in engineering and construction. |
| Beneficial Ownership Information (BOI) reporting | Our annual subscription service enables us to submit up to four initial, updated, and corrected BOI reports on behalf of your entity. |
| Document filing and retrieval | We file initial and annual reports, offer drop-off filing services, and help entities secure certified copies and certificates of good standing. |
| Nonprofit formation | We assist nonprofits in filing for incorporation and 501(c) tax exemption. |
| Registered agent services | Our local offices across the U.S. enable us to serve as your registered agent and receive legal correspondence on your behalf. We also offer change of registered agent services. |
| Entity lifecycle management | Our entity lifecycle management includes filing support for incorporation, LLC formation, withdrawal and dissolution, name reservation, amendment, and reinstatement. We also offer support for publishing and foreign qualifications. |
Florida Payroll Tax Registration FAQs
Below, you’ll find answers to frequently asked questions about the Florida payroll tax registration process. For more information, visit our Information Center.
In Florida, payroll tax only applies to the first $7,000 of wages paid to each employee annually. The rate can range from 0.1% to 5.4%, depending on factors such as the employer's history and compliance.
New employers in Florida begin with an initial reemployment tax rate of 2.7%. This rate stays in effect until the employer has filed for ten quarters, after which the rate may change based on their employment history and other factors.
The maximum reemployment tax rate in Florida is 5.4%. This rate can be earned or assigned to employers with certain delinquencies or those who do not provide requested work records for audits. However, employers in the Short-Time Compensation Program may have different rules.
Partner With Harbor Compliance for a Hassle-Free Payroll Tax Registration Process
Employers in Florida are required to register for reemployment tax and provide extensive information during the registration process. This process can become quite complex if you're managing operations across multiple locations in Florida or nationwide.
You can simplify this task by partnering with service providers like Harbor Compliance. Order our Payroll Tax Registration Service and let us handle the process for you. Additionally, our Tax Manager can help you keep track of your tax filings and registrations—schedule a demo session to see how it works.
To check your current standing with the state, use our FREE Harbor Compliance Score™. If it needs improvement, we are ready to help you. Reach out to us and let us know what kind of assistance you need, and our team of seasoned professionals will do the rest.
For more information on payroll taxes in the U.S., explore our collection of guides below:
