Florida Reemployment Tax

Legal Requirements

Section 448.095, Florida Statutes, requires employers to verify each new employee’s employment eligibility within three business days after the first day that the new employee begins working for salary, wages, or other remuneration.

Florida private employers with 25 or more employees and all public agencies are required to use E-Verify to validate that newly hired employees are eligible for employment within the United States. E-Verify is a free, internet-based application operated by the U.S. Department of Homeland Security that allows employers to electronically verify employment eligibility of newly hired employees. Information on how to register and access the E-Verify system is located on the Federal E-Verify website. If the E-Verify system is unavailable for three business days after the first day the new employee begins working for salary, wages, or other remuneration, an employer must use the Employment Eligibility Verification (federal form USCIS I-9) to verify employment eligibility within the United States.

Employee Leasing Companies

An employee leasing company (ELC) is responsible for certifying the employment eligibility of any new employee of a client company that meets the definition of a private employer with 25 or more employees or is a public agency. Verification and certification of employment eligibility may be transferred from the ELC to the client company only by written agreement or written understanding. If this occurs, the ELC will continue to file reports with the Department, and the client company will be required to certify use of the E-Verify system or federal form USCIS I-9.

Certification Process

Each private employer with 25 or more employees, public agency, or employee leasing company required to use the E-Verify system must certify on its first reemployment tax return filed each calendar year that it used E-Verify or the I-9 to confirm employment eligibility of each new employee. If you are not a private employer with 25 or more employees or a public agency, and you use the E-Verify system to validate employment eligibility, you are not required but may elect to certify use of E-Verify on a voluntary basis. Certification is valid for a calendar year and must be renewed annually.

Certification must be completed by (1) the individual owner, (2) the corporate president, treasurer, or other principal officer, or (3) a partner or member/managing member. The certification statement should be signed and dated if the employer, public agency, or employee leasing company uses E-Verify at the time of certification. Certifying use of the E-Verify system must be made in one of the following four ways:

• Employer E-Verify Certification (Form RT-E Verify) – This paper form or electronic application gives employers the opportunity to certify use of the E-Verify system. The Employer E-Verify Certification should be used by employers who rely on a third party to file their reemployment tax return if the third-party filer does not have the legal authority to certify use of the E-Verify system on behalf of the employer. Certification should occur by no later than the last day of the month following the quarter in which the first reemployment tax return is due in the calendar year. You may access an electronic version of the Employer E-Verify Certification or download a paper copy from the Department’s Forms and Publications webpage. Examples of entities that should use Employer E-Verify Certification to certify use of E-Verify are as follows:

  1. A client company that has a written agreement or understanding with an employee leasing company that the client company will certify its own use of the E-Verify system, and the client company has 25 or more leased and non-leased employees.

  2. An agent or management company that has filed on behalf of an employer who has 25 or more employees.

• Paper Reports – Private employers who employed fewer than 10 employees in any quarter during the preceding state fiscal year and wish to voluntarily certify use of the E-Verify system may do so on one of the paper forms listed in the bullets below. In addition, employers with 10 or fewer employees who rely on agents or management companies to file their reemployment tax return may use the Correction to Employer's Quarterly or Annual Domestic Report (Form RT-8A) to certify use of the E-Verify system. Employers who wish to use the RT-8A must have an active reemployment tax registration with the Department and be required to file an Employer's Quarterly Report (Form RT-6). Otherwise, certification should occur on the Employer E-Verify Certification (Form RT-E Verify).

  The following forms will be mailed to you with the certification statement:

  1. Employer’s Quarterly Report (Form RT-6)
  2. Employer’s Quarterly Report for Employees Contracted to Governmental or Nonprofit Educational Institutions (Form RT-6EW)
  3. Employer’s Quarterly Report Continuation Sheet (Form RT-6A)
  4. Quarterly Report for Out-of-State Wages (Form RT 6NF)
  5. Correction to Employer’s Quarterly or Annual Domestic Report (Form RT-8A)
  6. Employer’s Reemployment Tax Annual Report for Employers of Domestic Employees Only (Form RT-7)

• File and Pay Application – The Department provides employers, agents, and employee leasing companies an application that allows a user to file their reemployment tax return electronically. A screen with the electronic certification statement will appear prior to submission of the Employer’s Quarterly Report (Form RT-6), Correction to Employer’s Quarterly or Annual Domestic Report (Form RT-8A), or Employer’s Reemployment Tax Annual Report for Employers of Domestic Employees Only (Form RT-7). The certification statement should be electronically signed and dated if the employer uses E-Verify at the time of certification. Employers who wish to use the file and pay application must have an active reemployment tax registration with the Department and be required to file an Employer's Quarterly Report (RT-6). The file and pay application may be used by the following entities to certify use of the E-Verify system:

  • Private employers who employed fewer than 25 employees in any quarter during the preceding state fiscal year, currently file electronically, and wish to voluntarily certify use of the E-Verify system, may use the file and pay application.

  • Private employers with 25 or more employers and public agencies that do not file a return using Extensible Markup Language (XML) may certify use of the E-Verify system in the file and pay application.

  • An employee leasing company (ELC) responsible for certifying employment eligibility of any new employee of a client company may certify use of the E-Verify system in the file and pay application.

  Note: Agents or management companies do not have the statutory authority to certify use of the E-Verify system on behalf of an employer. Qualified agents or management companies will continue to file reports with the Department on behalf of the employer, and the employer will separately certify use of E-Verify by filing a Correction to Employer's Quarterly or Annual Domestic Report (Form RT-8A) or by using the online Employer E-Verify Certification.

• Extensible Markup Language (XML) – The Department has established an electronic file and pay program for entities submitting large data files with reemployment tax information. The XPath document and Florida XML Schemas have been updated to include additional E-Verify certification fields. Download the Reemployment Tax XML Package posted to the Software Developer Information and Specifications webpage for the new filing requirements. XML may be used by the following entities to certify use of the E-Verify system:

  • Private employers with 25 or more employers and public agencies that currently file a return using Extensible Markup Language (XML) may certify use of E-Verify in the file.

  • An employee leasing company (ELC) that currently files a return using XML and is responsible for certifying employment eligibility of any new employee of a client company may certify use of the E-Verify system using XML.

  Note: Agents or management companies do not have the statutory authority to certify use of the E-Verify system on behalf of an employer. Qualified agents or management companies will continue to file reports with the Department on behalf of the employer, and the employer will separately certify use of E-Verify by filing a Correction to Employer's Quarterly or Annual Domestic Report (Form RT-8A) or by using the Employer E-Verify Certification.

Certification Made in Error

An entity has the option to correct their certification status if it certified use of the E-Verify system in error. If you would like to reverse your certification status for the current or previous calendar year, email your request to [email protected] and include the following information:

• Name of employer or employee leasing company
• Original method of certification:

   

  • • Form RT-E Verify (paper)
    • Form RT-E Verify (electronic application)
    • Reemployment tax return (paper)
    • Reemployment tax return (electronic submission)

   

• Calendar year that certification was made in error
• Federal Employer Identification Number of certifying entity
• Name and title of authorized person who is requesting to withdraw certification on behalf of the entity
• Certification Correction Statement – I attest, under penalty of perjury, that this employer incorrectly certified their Employment Eligibility Verification by use of the E-Verify system defined in section 448.095 (1) (c), Florida Statutes, or the Employment Eligibility Verification (Form I-9)

Frequently Asked Questions

For answers to commonly asked questions, please read the New Employee Eligibility and E-Verify - Frequently Asked Questions.

Important Definitions

Public agency – Any office, department, agency, division, subdivision, political subdivision, board, bureau, commission, authority, district, public body, body politic, state, county, city, town, village, municipality, or any other separate unit of government created or established pursuant to law, and any other public or private agency, person, partnership, corporation, or business entity acting on behalf of any public agency.

Employee – An individual filling a permanent position who performs labor or services under the control or direction of an employer that has the power or right to control and direct the employee in the material details of how the work is to be performed in exchange for salary, wages, or other remuneration. The term “employee” does not include:

• An individual hired for casual labor that is to be performed entirely within a private residence.

• An independent contractor, as defined in federal laws or regulations, hired to perform a specified portion of labor or services.

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 Commerce.

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 webpage.

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 online Florida Business Tax Application, or complete and submit a paper Florida Business Tax Application (Form DR-1 ).

An employer is liable to pay reemployment tax if it meets any of the following conditions:

• At least one quarterly payroll totaling $1,500 or more (including wages for both full and part-time employees) in a calendar year.
• One or more employees for a day (or portion of a day) during any 20 weeks in a calendar year.
• 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.
• 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 calendar quarter.
• Private home or college club that paid $1,000 cash in a quarter for domestic services in a calendar year.
• All or part of a liable business purchased, or the combination of existing payroll/employment and that of the business purchased meets the liability criteria.
• Liable for federal unemployment tax.
• Previously liable for reemployment tax in the State of Florida.
• State, county, city, or joint governmental unit.
• Indian tribe or tribal 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 (Form RT-83 ) where all employees can see it. The poster is also available in Spanish (Form RT-83SP ).

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.

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.

Employers can log in to their account to view their tax rate by following the View Reemployment Tax Rates in Five Easy Steps  aid. Alternatively, employers can call 850-488-6800 at any time and follow the prompts to obtain their tax rate.

Register with the Department 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.

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 Commerce 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.