Setting up payroll correctly from the start prevents the costly errors that plague new Florida employers — missed deposits, incorrect withholding, and late filings. This guide walks Florida small business owners through every step of payroll setup: the accounts to open, the service to choose, the forms to file, and the compliance calendar to follow from day one.
An Employer Identification Number (EIN) is required before your first payroll. Apply at irs.gov/EIN — the application is free and the EIN is issued immediately online. Use the EIN for: payroll tax deposits (EFTPS enrollment), quarterly Form 941 filing, W-2 and 1099 issuance, Florida Reemployment Tax account, and state business registrations. If you're a sole proprietor without employees, your SSN may suffice for some purposes — but get an EIN when hiring to avoid using your SSN on employee-facing documents.
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Register your Florida business for Reemployment Tax (RT) through the Florida Department of Revenue's e-Services portal (floridarevenue.com). You'll receive a Florida RT Account Number. New employer rate: 2.7% on first $7,000 of wages per employee per year. After 3 years, your rate is experience-rated based on claims history. You'll file quarterly RT returns and make quarterly payments (due April 30, July 31, October 31, January 31). Florida has no state income tax withholding — the only state payroll registration needed is the RT account.
Options for Florida small businesses: (1) Full-service payroll (recommended for first-time employers): Gusto ($40–$80/month base + per-employee fee), ADP Run, Paychex Flex, QuickBooks Payroll. These handle withholding, deposits, 941 filing, W-2s, and Florida RT filing automatically. (2) DIY payroll: only practical if you have accounting expertise and are prepared to track deposit schedules and IRS rules. The consequences of deposit errors (penalties 2%–15%) almost always exceed the cost of payroll software. (3) Professional employer organization (PEO): Justworks, TriNet, or Insperity — co-employment arrangement where the PEO manages payroll, benefits, and HR compliance for a per-employee fee.
The Electronic Federal Tax Payment System (EFTPS) is required for federal payroll tax deposits. Enroll at eftps.gov — allow 5–7 business days for PIN delivery by mail. After enrollment, link your bank account and schedule deposits. EFTPS deposits are instantaneous and provide confirmation numbers for your records. Deposits can be scheduled in advance — schedule each payroll's tax deposit on the same day as payroll processing to avoid missing the deposit deadline. New employers are monthly depositors in Year 1 (deposit by the 15th of the following month). Keep EFTPS enrollment information in a secure location accessible to your accountant.
Ongoing obligations: Every payroll: withhold federal income tax + employee FICA; pay employer FICA match; deposit via EFTPS per schedule. Monthly (for new employers): deposit by 15th of following month. Quarterly: Form 941 due April 30, July 31, October 31, January 31; Florida RT return and payment same dates. Annually: W-2s furnished to employees by January 31; W-2 transmittal to SSA by January 31; Form 940 (FUTA) by January 31; Florida RT annual reconciliation. When an employee leaves: provide separation notice for FL Reemployment benefit purposes; COBRA notice within 14 days if applicable.
We help Florida small business owners set up payroll systems, register tax accounts, and stay compliant with federal and state requirements.
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