Key Takeaways:

  • Florida uses the state minimum wage of $14.00 per hour. Due to the yearly $1 increase schedule, it is expected to increase to $15.00 per hour on September 30, 2026.
  • Florida does not impose a state personal income tax on wages.
  • Employers must pay Florida Reemployment Tax (SUI) on the first $7,000 of wages per employee. The exact rates depend on the employer’s experience.
  • Florida has no separate daily overtime requirement. It follows the federal law. 
  • Working with a Florida Employer of Record (EOR) allows you to hire in the state without forming a legal entity. 

Employers who wish to hire the best talent or expand their team to Florida in 2026 must comply with the state-specific rules. Unlike other U.S. states, Florida does not follow the federally mandated minimum wage, nor does it have a personal income tax structure.

We carefully explain everything employers need to know about hiring in Florida in this guide. You’ll learn about the wage requirements, payroll taxes, workers’ compensation, and overtime rules.

If you are also looking to hire in Florida without setting up a local entity, our EOR team can help you recruit and onboard talent within weeks.

All You Need to Know About Hiring in Florida

Florida is one of the largest labor markets in the United States. You’ll find a wide range of global industries in major cities like Miami, Orlando, Tampa, and Jacksonville. Some of the biggest sectors that contribute to the state’s economy include tourism, hospitality, healthcare, construction, agriculture, and financial services.

Since the state has no personal income tax, employers consider Florida to be business-friendly. Payroll is easier to administer, and the state relies on federal labor standards for overtime rules. 

However, companies must follow the state minimum wage schedule, reemployment tax system, and workers’ compensation requirements to remain compliant and avoid the risk of penalties.

To learn more about the business environment, check out our doing business in Florida guide.

What Is a Florida Employer of Record?

A Florida Employer of Record (EOR) acts as a third-party employer that legally hires talent on behalf of another company.

The EOR will handle the entire compliance requirements so you can fully focus on your employees’ performance. This includes payroll processing, tax filing, reemployment tax registration, and workers’ compensation.

If you are expanding to Florida, you do not need to register a local entity. The EOR company automatically bears the employment liability and compliance risks, so you can set up in days or weeks, instead of months.

Start hiring with a Florida EOR

Let us handle the complexities of hiring, compliance, and payroll in Florida while you focus on growing your team.

  • Hire employees in Florida with a Florida EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Florida
Get Your Customized Proposal

What Is the Difference Between a Florida Employer of Record and a Florida PEO?

If your business requires payroll and HR support, both an Employer of Record (EOR) and a Professional Employer Organization (PEO) can assist. However, a Florida EOR differs from a Florida PEO in terms of structure and services offered.

We carefully explain both so you can make the right decision when hiring in Florida.

Florida Professional Employer Organization (PEO)

A PEO shares the employment responsibility with the hiring client.

Unlike an EOR that legally hires on your behalf, your company remains the legal employer. The PEO will only share certain employer responsibilities, such as payroll processing and benefits administration.

If your company does not already have a registered local entity in Florida, you might want to opt for an EOR instead because the compliance liability is shared and not fully transferred to the PEO.

PEOs are ideal for the U.S.-based companies that already operate in Florida and simply want administrative HR support.

Florida Employer of Record (EOR)

An EOR uses a full employment model.

They become the legal employer and assume responsibility for payroll processing, tax filings, state registrations, and other compliance duties.

If you do not wish to set up a legal entity in Florida, the EOR bears the employment liability and compliance risks, so you can onboard talent quickly and confidently focus on business growth.

International companies hiring in Florida or businesses that wish to avoid state registration can consider partnering with a Florida EOR for fast and compliant hiring.

How Does a Florida Employer of Record Work?

A Florida Employer of Record provides the support your business needs to set up in Florida successfully. They will handle everything from recruitment to onboarding and ongoing compliance. 

Here’s a step-by-step process to expect when you work with one as a Florida employer:

1

They Draft Compliant Employment Contracts

The EOR ensures your company provides new hires with employment contracts that are compliant with Florida rules. 

Although Florida is an “at-will employment” state, employment contracts must still comply with minimum wage and tax requirements. The contract must clearly follow minimum wage laws, worker classification rules, and the compensation schedule.

2

They Handle Registration for State Payroll Setup

When an employer starts to hire in Florida, they must begin proper state registrations before payroll can be processed for workers.

The EOR initiates the process on your behalf with the Florida Department of Revenue for Reemployment Tax (SUI). Once that is completed, they enroll you for the Federal Employer Identification Number (EIN) verification and Workers’ compensation coverage (if required by your industry).

3

They Process Payroll and Withhold Tax

The EOR calculates employee gross salary using the payroll calculator.

If the employee is eligible for overtime pay or tipped wages, this would also be considered during the payroll processing.

They also withhold federal income tax, Social Security, and Medicare (FICA) and ensure timely reporting and remittance to the appropriate authorities.

4

They Administer Employee Benefits

An EOR administers health insurance, retirement benefits, Workers’ compensation coverage, unemployment insurance, and other voluntary benefits stated in the employment contract.

They ensure that your employee benefits structure complies with ERISA and ACA, where applicable.

5

They Manage Ongoing Compliance

The EOR ensures that your business remains compliant with Florida state laws. Keeping up to date with recent changes can be quite overwhelming, so they monitor annual minimum wage increases, SUI rate adjustments, and payroll tax reporting deadlines on your behalf.

If there are any changes in the workers’ compensation schedule or federal labor law, they ensure that you remain compliant and avoid the risk of penalties.

How Labor Laws Affect Hiring in Florida?

Florida has one of the most straightforward labor laws in the United States. However, some rules follow state laws, while others follow federal laws. Employers must understand both before hiring or setting up a business in Florida.

Minimum Wage and Overtime

Florida’s minimum wage increases each year on the 30th of September. As of September 30, 2025, the minimum wage in Florida is $14.00 per hour. It is expected to increase to $15.00 per hour by September 30, 2026.

Since the increase schedule is implemented annually, employers must consider this when planning their workers’ compensation budgets.

For tipped employees, Florida allows a fixed tip credit of $3.02 per hour. When the minimum wage is $14.00, employers may pay tipped employees a direct cash wage of $10.98 per hour, as long as the employee’s tips bring total earnings to at least $14.00 per hour. If tips do not reach that level, the employer must pay the difference.

For example, when the minimum wage increases to $15.00 in September 2026, the tipped cash wage must increase to $11.98 per hour, and the $3.02 tip credit will remain the same.

Employers are not permitted to keep employee tips. Managers and supervisors cannot participate in tip pools.

Florida does not have its own overtime rule. Overtime is governed by the Fair Labor Standards Act (FLSA), and non-exempt employees must be paid 1.5 times their regular rate if they have worked beyond the standard 40 hours allowed weekly.

Income Tax

Employers are not permitted to withhold personal income tax from employee wages since Florida does not impose a state personal income tax. They are also not required to file any state income tax returns because of this.

Only federal income tax and federal payroll taxes will be withheld from employees’ salaries.

State Unemployment Insurance (Reemployment Tax)

Unlike other states, Florida’s unemployment insurance system is called the Reemployment Tax.

Employers pay Reemployment Tax on the first $7,000 of wages paid to each employee per year. This wage base resets each year, and it is managed by the Florida Department of Revenue.

New employers in Florida will only be assigned an initial rate of 2.7%. Over time, the rate may increase or decrease depending on your claims history and experience rating. Employers can expect a range of 0.1% to 5.4%.

This tax contribution is fully funded by the employer; employees are not expected to contribute in any way.

Employers must register with the Florida Department of Revenue and ensure to report the reemployment tax on the last day of the month, every quarter.

Failure to comply may result in heavy penalties.

Paid Leave

Florida employers are not required to provide paid sick leave, paid family leave, or paid vacation to any employee.

However, federal law mandates employers with 50 or more employees to comply with the Family and Medical Leave Act. This provides eligible employees with unpaid leave if they need to be absent from work for medical or family reasons.

If the Florida employer decides to provide paid leave as part of the compensation package, it must be clearly written in the employment contract and applied to avoid wage disputes.

Workers’ Compensation

Employers are responsible for the workers’ compensation insurance, but the threshold depends on the type of business.

For non-construction businesses, coverage will only be required when the employer has four or more employees, whether full-time or part-time.

For construction businesses, coverage is compulsory even if the employer has only one employee. This is due to the level of workplace injury that may occur during work hours.

Employers in the agriculture sector must provide coverage if they have six or more regular employees, or 12 or more seasonal employees working more than 30 days in a season.

Failure to maintain the required coverage can result in heavy fines and liability for medical costs. Employers are expected to confirm their classification and coverage requirements before hiring workers in Florida.

Termination and Final Pay

Florida is an “at-will employment” state, which means that an employer has the right to terminate an employee at any time, with or without cause, and with or without notice, as long as the termination does not violate federal or state laws.

The state does not mandate employers to provide a notice of termination, but federal laws such as the Worker Adjustment and Retraining Notification (WARN) Act may apply for larger layoffs or business closures.

Final Paycheck Requirements

There is no specific deadline for issuing a final paycheck in Florida. If an employee has been terminated, the employer must pay all earned wages on or before the next payday. 

Employers must ensure that all hours worked, including overtime, are fully paid. Failure to comply with this will result in wage liability under federal law.

When you partner with an Employer of Record, they ensure that the final wage payments are handled in compliance with labor laws.

Payroll Taxes and Employer Cost in Florida

When hiring in Florida, employers must budget for additional employment costs such as federal payroll taxes, state unemployment contributions, and workers’ compensation insurance. Since Florida doesn’t have a state income tax, the payroll structure is simpler compared to other countries.

Federal Payroll Taxes

All Florida employers must pay federal payroll taxes under the Federal Insurance Contributions Act (FICA). The total FICA cost for employers in Florida is 7.65% of the employee wages (Social Security + Medicare).

Tax TypeEmployer RateWage Base / LimitNotes
Social Security (FICA)6.2%Up to the annual wage baseEmployer matches what the employee contributes and only stops when annual earnings exceed the maximum taxable amount.
Medicare (FICA)1.45%No limitEmployer portion only.
Federal Unemployment Tax (FUTA)0.60%First $7,000 per employeeThe FUTA rate is 6.0%, but most employers receive a 5.4% credit for timely state unemployment tax payments, reducing the rate to 0.6%.

The FUTA rate is 6.0% on the first $7,000 of wages per employee. However, when state reemployment taxes are paid on time, Florida employers receive a federal credit of up to 5.4%, reducing the FUTA rate to 0.6%.

State Income Tax Withholding

Employers in Florida do not withhold state income tax and do not file any withholding returns to the state. This simplifies payroll administration compared to states with personal income tax systems.

Florida Reemployment Tax (State Unemployment Insurance)

Florida employers pay Reemployment Tax on the first $7,000 of wages paid to each employee each year.

New employers are assigned a starting rate of 2.7%, but it may increase or decrease depending on the employer’s claims history. 

Since the wage base is limited to $7,000 per year, the total annual unemployment tax per employee is capped once that wage threshold is reached.

Workers’ Compensation Insurance

Workers’ compensation is determined by the type of industry, payroll size, and claims history.

Higher-risk industries, such as construction, pay higher premiums compared to other lower-risk sectors. These premiums are calculated per $100 of payroll, and it is determined by the classification code. Employers must confirm estimated premium rates before budgeting.

Example Employer Cost Breakdown

If an employee earns $100,000 per year in Florida in a non-construction role, here’s what the employer cost breakdown looks like.

ItemAmount
Social Security (6.2%)$6,200
Medicare (1.45%)$1,450
FUTA (0.6% on first $7,000)$42
Florida Reemployment Tax (2.7% on first $7,000)$189
Workers’ Compensation (0.3%–1%)$300–$1,000
Estimated Employer Burden8%–11%

For a $100,000 salary, the total employer costs will now range between 8% and 11%, depending on the workers’ compensation classification, unemployment tax rate, and benefit package.

Employers who include optional benefits such as health insurance, retirement contributions, or bonuses will still have to budget additional employment costs.

Employee Classification Rules in Florida

Employers hiring in Florida must avoid the risk of misclassification to prevent wage liability and heavy penalties under both state and federal law.

While Florida does not have a state-specific classification test for employers, it follows federal standards for wage and overtime compliance.

Independent Contractor Classification

This classification is governed by the federal Fair Labor Standards Act (FLSA), using the “economic realities” test.

This test determines whether a worker is economically dependent on the employer or operates an independent business.

It considers the following factors:

  • The degree of control the company exercises over the work
  • The worker’s opportunity for profit or loss
  • The worker’s investment in equipment or materials
  • The permanence of the working relationship

For federal tax purposes, the Internal Revenue Service examines behavioral control, financial control, and the nature of the relationship.

Employers must satisfy these classification standards when classifying workers.

Misclassification Penalties

If a worker is determined to have been improperly classified, an employer will be fined. 

Some of the penalties include back payment of unpaid overtime wages, federal penalties, and heavy interest. Additional civil penalties may be involved if the FLSA discovers that the violation was intentional.

How an Employer of Record Reduces Risk

An Employer of Record helps reduce the risk of misclassification by hiring workers on your behalf. Instead of hiring independent contractors, they’ll help you onboard talents as properly classified employees, even if you do not own a local entity in Florida. 

If your company is uncertain about classification standards, we recommend partnering with an EOR to ensure compliance with labor laws and avoid the risk of misclassification.

What Makes Hiring in Florida Unique?

Florida’s minimum wage schedule makes it easier for employers to budget for payroll since it follows an automatic annual increase every 30th September.

The state is also considered to be business-friendly since it does not impose a personal income tax or mandate benefits such as paid leave or daily overtime. 

Migration into major cities such as Miami, Tampa, and Orlando also increases the talent pool and provides employers with more highly skilled professionals for specialized roles.

Florida is very employer-friendly compared to other high-regulation states, but business owners must be ready to comply with state and federal labor laws where applicable.

What Are the Benefits of a Florida Employer of Record?

  • No entity setup required: A Florida EOR allows you to hire employees in the state without registering a legal entity.
  • Faster onboarding: Employees are hired within weeks, instead of months, once the documentation is completed.
  • Centralized compliance management: The EOR manages payroll processing, federal tax withholding, Florida Reemployment Tax filings, and workers’ compensation coverage so you can avoid compliance risks.
  • Reduced legal risk: The EOR assumes responsibility for other compliance duties that may result in legal exposure for the company.
  • Scalable across multiple states: If you wish to hire in other U.S. states, the EOR can still manage employment for your company using a single payroll platform.

What Are the Downsides of a Florida Employer of Record?

While a Florida Employer of Record offers many advantages, employers have to budget for service fees. Larger teams often have to spend more on payroll management.

The EOR structure also gives the employer less direct control over the payroll processes. The EOR handles everything on your behalf so you can focus on other aspects of business growth. This may be quite upsetting for companies that prefer a shared responsibility model.

However, an EOR remains the fastest way to hire in Florida without compliance risks and employment liability.

How to Choose a Florida Employer of Record?

To choose the right Employer of Record in Florida, consider the following factors:

Transparent pricing

Ask for all fees upfront. Ensure they are clearly stated and included in the administrative costs before you sign up.

Direct EOR relationship

EOR providers who do not subcontract to other partners are less likely to create confusion or compliance risk.

U.S. multi-state expertise

The provider must have experience managing employees across multiple US states to ensure compliance as you set up in Florida.

Dedicated support

Choose an EOR provider that offers dedicated account management and HR support when you need to resolve issues quickly.

Strong compliance track record

Verify that the EOR has helped several employers achieve strong federal and state compliance.

Engage a Florida Employer of Record with Remote People

Remote People can help you hire in Florida with peace of mind. We will manage payroll, taxes, benefits, and other compliance duties on your behalf so you can set up successfully. 

You only have to bother about your daily business operations. Our EOR team in Florida will ensure your employees are properly classified and paid accurately and on time. 

With as low as $199 per employee, you can hire compliantly in Florida without forming a local entity. 

Contact us today to get a proposal for your team.