Florida, like Texas, has no state income tax — making it one of the simpler payroll environments in the US. But "simple" isn't the same as "zero compliance." Florida employers owe reemployment tax to the DEO, must follow the Florida Minimum Wage Act, and run the same full federal compliance stack as every other state. Paylon handles all of it.
The Florida advantage: No state income tax withholding means Florida employees take home more than equivalently paid workers in California or New York. A $100,000 employee in Florida saves $5,000–$7,500 per year in state income taxes compared to a California peer. That's a recruitment angle — and a payroll simplification.
Florida payroll is primarily federal compliance, with one state-level obligation: reemployment tax (Florida's version of SUTA).
| Tax | Rate | Who Pays | Notes |
|---|---|---|---|
| FL State Income Tax | None | — | Florida has no individual state income tax; no withholding required |
| Reemployment Tax (SUTA) | 0.1% – 5.4% | Employer | New employer rate: 2.7%; taxable wage base $7,000 per employee (2026) |
| Federal Income Tax | 10% – 37% | Employee | Standard federal brackets; governed by employee W-4 elections |
| Social Security | 6.2% (employer + employee) | Both | Wage base: $176,100 (2026) |
| Medicare | 1.45% + 0.9% surcharge | Both / Employee | Additional 0.9% withheld from employee wages over $200K (single filer) |
| FUTA (Federal Unemployment) | 0.6% net (after credit) | Employer | 6% gross on first $7,000; 5.4% credit for timely reemployment tax payments |
Florida's compliance obligations are narrower than most states — but each one matters:
Florida's minimum wage increases every September 30 under a voter-approved ballot measure. The schedule runs through 2026, when the wage reaches $15.00/hour, then continues with CPI-based adjustments. For employers paying at or near minimum wage, missing the September update creates immediate wage theft exposure.
Florida also has a tipped employee subminimum ($9.98/hour in September 2025), with employers required to make up the difference if tips plus subminimum don't reach the full minimum wage. Paylon tracks the applicable rate for each employee type and flags when compensation falls below the applicable minimum.
Florida's reemployment tax funds unemployment insurance for laid-off workers and flows through the DEO. The mechanics are similar to SUTA in other states: you pay a percentage of each employee's wages up to a taxable wage base ($7,000 for 2026), and your rate is experience-rated based on how many former employees claimed unemployment benefits against your account.
The common mistake: continuing to deposit at the prior year's rate after DEO issues new rate notices each January. Underpayments create assessments; overpayments are a credit toward future contributions but require filing corrections. Paylon applies the current DEO-assigned rate automatically.
For Florida employees, Paylon runs federal-only withholding. Pay stubs show federal income tax, FICA — and nothing else for state taxes. Clean, simple, and accurate. No phantom state withholding line items.
Every payroll run in Paylon automatically accumulates the wage and contribution data needed for quarterly RT-6 submissions to the DEO. No separate log, no manual tallying of taxable wages per employee.
Florida's minimum wage changes every September 30. Paylon applies the updated rate on the effective date and flags any employee whose pay rate falls below the new minimum before the next payroll run.
Companies making location decisions often compare Florida and California. From a payroll perspective, the difference is material:
A California payroll run involves: federal withholding, CA state income tax (10 brackets), SDI at 1.1% (no cap), SUTA/ETT contributions, EDD quarterly filings (DE 9 and DE 9C), CalSavers tracking, and detailed pay stub requirements.
A Florida payroll run involves: federal withholding, reemployment tax contributions, and DEO quarterly RT-6 filings. That's it.
The operational difference — not just in tax cost but in compliance administration — is significant. Paylon handles both accurately, but if you're running a lean HR operation, Florida's reduced compliance surface area is real.
For companies with employees in both states, Paylon applies the correct rules for each jurisdiction automatically. Your California employees get their CA-specific withholding; your Florida employees get the simpler federal-plus-reemployment-tax treatment.
No state income tax means no state withholding complexity. Reemployment tax, federal compliance, and DEO filings — automated. See what it actually costs.
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