What Is Florida Reemployment Tax and When Do I Have to Register?
Florida reemployment tax is the state’s version of unemployment insurance tax, paid entirely by the employer. You become liable once you pay $1,500 or more in wages in any calendar quarter, or once you have at least one employee for some part of a day in 20 different weeks in a year.
Most states call this SUTA or state unemployment tax. Florida renamed it reemployment tax, which is why searching for it can be confusing. It is the same kind of tax.
How much is it?
The tax applies to the first $7,000 of each employee’s wages per year. Wages above that are not subject to it, which means the cost per employee is capped and predictable.
| Rate | Roughly, per employee per year | |
|---|---|---|
| New employer, first 10 quarters | 2.7 percent | About $189 |
| Established, minimum | 0.1 percent | About $7 |
| Established, maximum | 5.4 percent | About $378 |
After roughly 10 quarters you have enough history for the state to recalculate your rate based on your own experience. That is the part worth paying attention to, because it is partly within your control.
Why your rate moves
Your experience rate reflects claims charged against your account. More former employees successfully claiming benefits pushes your rate up, and it stays elevated for a while.
The practical implication for a seasonal business, which describes a lot of Key West, is that how you handle the end of season matters financially. So does responding to claim notices. Employers who ignore those notices, or miss the response window, get charged for claims they might have had grounds to contest. That shows up in the rate later.
Who is exempt?
Genuine independent contractors are not employees, so no reemployment tax applies to them. That sounds like an easy way to reduce the bill, and it is exactly where businesses get into trouble. Calling someone a contractor does not make them one, and misclassification is expensive when it unwinds.
See employee or independent contractor before you rely on this.
What do I actually have to do?
- Register with the Florida Department of Revenue once you cross a liability threshold. Do not wait until year end.
- File quarterly, even in quarters with no wages, once you are registered.
- Respond to claim notices promptly. The windows are short and missing one has a lasting cost.
- Keep the payroll records. Reemployment tax is one of the things auditors reconcile against.
Frequently asked questions
What is the Florida reemployment tax wage base?
The first $7,000 of each employee’s wages per calendar year.
What rate do new employers pay?
2.7 percent for approximately the first 10 quarters, after which the rate is recalculated based on your claims experience.
When do I have to register?
When you pay $1,500 or more in wages in a calendar quarter, or employ at least one person for part of a day in 20 different weeks during the current or preceding year.
Do employees pay any of it?
No. Reemployment tax is paid entirely by the employer and is not withheld from wages.
Let’s sit down and talk
If you are about to hire your first employee, or you have been paying people and are not sure you registered when you should have, call 305-363-5429 or contact Robert.
Related: the full Key West business owner tax guide and small business accounting services.
General information current as of July 2026, not tax advice for your situation. Rates and thresholds change. Confirm current figures with the Florida Department of Revenue.