Reemployment tax is paid by employers and the tax collected is deposited into the Unemployment Compensation Trust Fund for the sole purpose of paying reemployment
assistance benefits to eligible claimants. Only the first $7,000 of wages paid to each employee by their employer in a calendar year is taxable. Employers with stable
employment records receive reduced tax rates after a qualifying period. The Florida Department of Revenue has administered the reemployment tax since
Every state has an Unemployment Compensation Program. In 2012, legislation passed in Florida changed the name of Florida’s Unemployment Compensation Law to the
Reemployment Assistance Program Law. The focus of the program was redirected to help Florida's job seekers become reemployed.
Who pays for Reemployment Tax?
Florida employers pay reemployment tax. It is one of the employer's business costs. Workers do not pay reemployment tax and employers must not make payroll
deductions for this purpose. Employer payments go into a fund from which money is paid to eligible, unemployed Floridians who file claims for reemployment assistance
with the Florida Department of Economic Opportunity.
How much do you pay?
The initial tax rate for new employers is .0270 (2.7%), which is applied to the first $7,000 in wages paid to each employee during a calendar year. Any amount
over $7,000 for the year is excess wages and is not subject to tax. For more information about the tax rate, review the
Reemployment Tax Rate Information web page.
Who is liable?
A new business must report its initial employment in the month following the calendar quarter in which employment begins. The Department recommends that employers
register to pay reemployment tax using the Department's secure website.
An employer is liable to pay reemployment tax if it meets any of the following conditions:
- Agricultural employer with five or more workers for a day (or portion of a day) during any 20 weeks in a calendar year, or a $10,000 cash payroll in any
- All or part of a liable business purchased, or the combination of existing payroll/employment and that of the business purchased meets the liability
- Indian tribe or tribal unit.
- Liable for federal unemployment tax.
- Nonprofit organization as defined in Section 3306(c)(8) of the Federal Unemployment Tax Act and Section 501(c)(3) of the Internal Revenue Code and
four or more employees for a day (or portion of a day) during any 20 weeks in a calendar year.
- One or more employees for a day (or portion of a day) during any 20 weeks in a calendar year.
- Previously liable for reemployment tax in the State of Florida.
- Private home or college club that paid $1,000 cash in a quarter for domestic services in a calendar year.
- Quarterly payroll of $1,500 or more in a calendar year.
- State, county, city, or joint governmental unit.
Nonprofit organizations, government agencies, and Indian tribes are given the option of paying their reemployment insurance costs by the tax-paying method or the
reimbursement method. The reimbursing employer must repay benefits paid to former employees on a dollar-for-dollar basis. Regardless of the method of payment, these
employers must submit the Employer’s Quarterly Report (Form RT-6) each quarter.
A liable employer must display the To Employees: poster
) where all employees can see it. The poster is also available in Spanish
Who is considered an employee?
The following definitions will help you understand who is considered an employee in order to classify workers correctly. Misclassification of workers is not just
a tax reporting issue; it also affects claims for reemployment assistance. If a person files a claim for reemployment benefits and the employer has not been
including the person on the quarterly report, it can delay benefit payments. Intentionally failing to report employees is a felony.
- Agricultural Labor - Any service performed on a farm under the employment of the owner, tenant, or any other operator of a farm in connection with:
- the production or harvesting of any agricultural or horticultural commodity, or
- the maintenance or operation of farm equipment or grounds.
- Casual Labor - Work that is not in the course of the employer's regular trade or business and is occasional, incidental, or irregular. Do not confuse casual
labor with temporary or part-time employment. A corporation cannot have casual labor.
- Employee - A person who is subject to the will and control of the employer as to what must be done and how it is done.
Read more about the differences between employees and independent contractors.
- Employee Leasing Company - An employee leasing company is an employing unit that has a valid and active license under Chapter 468, Florida Statutes.
- Employment - Any service done by an employee for the employer.
- Independent Contractor - A person not subject to the will and control of the employer. The employer does not control or direct the manner or method of job
performance. The general public is aware that the person is an independent contractor. Read more about the
differences between employees and independent contractors.
- Limited Liability Company (LLC) - A limited liability company is treated the same as it is classified for federal income tax purposes.
- A person performing services for an LLC that is being treated as a corporation for federal income tax purposes is an employee.
- A person, other than a partner or exempt employee of a partnership, performing services for an LLC that is being treated as a partnership for
federal income tax purposes is an employee.
- A person, other than the sole proprietor or an exempt employee of a sole proprietorship, performing services for an LLC that is being treated
as a sole proprietorship for federal income tax purposes is an employee.
- A single member LLC is treated as the employer.
- Officers of a Corporation - Any officer of a corporation performing services for the corporation is an employee of the corporation during tenure of
office, even when no compensation is received for these services. Compensation, other than dividends upon shares of stock and board of director fees, is
presumed to be payment for services performed.
- Salesperson - Any individual paid solely by commission under the direction and control of an employer is an employee. The law exempts insurance agents,
real estate agents, and barbers who are paid solely by commission. If they are paid by salary only or salary and commission, both are taxable and the
exemption does not apply.
- S Corporation - Salaries paid to corporate officers are considered wages. All or part of the distribution of income paid to corporate officers who are active
in the business and are performing services for the business can be considered wages.
What employment is not covered?
Some types of work are not covered and some wages paid for services are not subject to reemployment taxes. These exemptions include:
- Direct sellers who are contracted to sell or solicit consumer goods in homes or places other than a permanent retail establishment, and whose
substantial payment is directly related to sales.
- Employees of a church, convention or association of churches; or of organizations operated primarily for religious purposes that are operated,
supervised, controlled, or principally supported by a church, convention or association of churches.
- Persons under age 18 delivering or distributing newspapers.
- Services for a school, college, or university by a student enrolled and attending classes there.
- Services for government by elected officials; members of the legislature and judiciary; those serving on a temporary basis in cases of fire, storm,
etc.; or serving in an advisory capacity that ordinarily does not require more than eight hours per week.
- Services performed as a student nurse in a hospital or nurses' training school, a medical school intern in a hospital, or a hospital patient.
- Services performed by a sole proprietor or partner.
- Services performed by aliens (non-U.S. citizens) in agricultural labor, who have entered the United States under Section 1184(c) [formerly Section 214(c)] and Section
1101(a)(15)(H) [formerly Section 101(a)(15)(H)] of the Immigration and Nationality Act.
- Services performed by an individual for payment for a private, for-profit delivery or messenger service, if certain conditions are met.
- Services performed by an inmate of a correctional institution (work release programs).
- Services performed by nonresident aliens (non-U.S. citizens), who are temporarily present in the United States as non-immigrants under subparagraph (F) or (J) of Section
1101(a)(15) [formerly Section 101(a)(15)] of the Immigration and Nationality Act.
- Services performed for a son, daughter, or spouse; or by children under the age of 21 for their father or mother. When the employer is a partnership, an
exempt relationship must exist for all partners or there is no exemption. This exemption does not apply to corporations.
- Speech, occupational, and physical therapists who are not salaried and working under a written contract with a home health agency as defined in section
400.462, Florida Statutes.
- Students working for credit in a school program such as CBE or DCT.
- Work on a fishing vessel under 10 net tons.
General Timelines for Employers
Register by the end of the month following the
calendar quarter in which you become an employer. Example: If you started your business in January and have paid more than $1,500
in wages by the end of March, you need to register with the Department by the end of April, the month following the end of the
quarter in which you became liable.
File an Employer's Quarterly
Report (Form RT-6) by the end of each month following the end of the quarter. Reports are due even if you
had no employees or wages to report for that quarter.
||January - March
||April - June
||July - September
||October - December
You can sign up to receive an email every reporting period reminding you of the due date.
If you have chosen to pay any of the first three quarters by installments, your final installment is due by the
end of December.
A Notice of Benefits Paid (Form RT-1) listing the reemployment assistance benefits charged
to your account is mailed approximately two weeks after the end of every quarter if your business incurred benefit charges.
If you choose to protest the charges, you must file a protest with the Florida Department of Economic Opportunity within 20 days of the
'mailed on or before' date stated on the Notice.
Annual Reemployment Tax Rate Notices (Form RT-20) are mailed in mid-December. If you choose to
protest the rate notice, you must file a protest with the Florida Department of Revenue within 20 days of the 'mailed on or before'
date stated on the Notice.