Florida – Americas Preferred Payroll

Understanding Payroll Laws in Florida

app-admin — Thu, 25 Jan 2024 15:56:20 +0000

It is often said that the United States consists of 50 unique legal jurisdictions divided by state lines. The laws and regulations in one state have the potential to be essentially different from those in another state. In particular, payroll laws differ by state.

This is your inside look at Florida’s unique payroll laws.

Florida’s Minimum Wage

The federal minimum wage is $7.25 per hour. Florida’s minimum wage is significantly higher at $12 per hour. The Sunshine State transitioned to the new minimum wage on September 30, 2023.

Florida employers and employees should be aware that the state’s minimum wage will increase to $15 per hour by 2026.

Florida Laws Pertaining to Tips

Florida business owners, managers and human resources professionals should also be aware that state law requires that an updated minimum wage poster be displayed in an area of the business that all employees can see. There is even a penalty of $1,000 per violation for intentionally refusing to pay the state’s new minimum wage.

Statewide hospitality business owners and managers should be aware that the state’s tipped minimum wage differs from its minimum wage. Service industry employees, such as those who work in restaurants, are eligible for tips. The state’s tipped minimum wage is $7.98 per hour.

Florida employers are legally empowered to take $3.02 per hour of tip credits. Translated from bureaucratic legalese, this means statewide employers are empowered to pay those who earn tips slightly more than $3 less than the minimum wage. However, the caveat is that hourly earnings with tips added must be a minimum of $11.

Florida employment law also allows for the pooling of tips, be it mandatory or voluntary. The law states there is the potential to require that employees combine their tips for distribution across the entirety of the work crew. However, Florida employers that require tip pooling are legally required to provide advanced notice of the policy to all new hires and current employees.

Statewide employers are barred from forcing employees to combine individual tips into a shared pool if such sharing results in hourly compensation that is less than the aforementioned minimum wage. Moreover, Florida employment law states pool tips cannot be shared with employees who are not eligible for tips. As an example, those who work as restaurant managers are not eligible for a cut of pooled tips earned by waitstaff, cooks, bussers, etc.

Overtime Pay

Florida does not have laws on the books addressing overtime compensation. However, the nationwide overtime law is applicable in Florida. Employees considered to be “non-exempt,” as defined by the FLSA are legally entitled to overtime compensation.

FLSA is an acronym used to refer to the Fair Labor Standards Act. Non-exempt are those legally entitled to earn the federal minimum wage and also qualify for overtime compensation. Federal employment law states overtime pay is 1.5x that of the hourly rate for every hour worked in excess of the 40-hour workweek.

Though Florida employment laws do not specify an overtime limit per day, those who work manual labor for more than 10 hours in a day are legally entitled to overtime compensation for time worked beyond the 10-hour mark.

Employee Breaks

Florida employers are not legally mandated to provide employees with a rest break or meal. However, there is a caveat to this law in that workers under the age of 18 are legally entitled to a half-hour break if they work for more than four straight hours.

Scheduling and Reporting

Florida does not have laws on the books that cover the details of reporting hours worked. As an example, if an employee shows up to work yet is released from the shift before it is scheduled to end, the business is required to pay that individual for only the hours worked. State law does not define the minimum length of time an employee is to be paid for showing up for a shift yet not completing the entirety of the shift.

It is also interesting to note that Florida does not have predictive scheduling laws. Nor does the state have advanced requirements for schedule alterations. Florida employers are empowered to alter employee schedules without advanced notice. There is no legal requirement to obtain employee consent for schedule changes. However, such consent might be necessary if the terms of an employment contract or collective bargaining agreement state otherwise.

America’s Preferred Payroll is Here for Your Business

Are you a business owner or manager? If so, consider the merits of outsourcing your payroll, benefits administration, compliance, and time/attendance to our professionals. We help businesses maximize efficiency and the bottom line.

Call us today at (813) 865-4205 to learn more about how we can help your business.

How To Process Payroll in Florida?

app-admin — Thu, 26 Jan 2023 18:13:00 +0000

Payroll in Florida is inherently challenging, partially because the days of cutting a weekly check to hardworking employees are long gone. Today’s payroll is characterized by a litany of challenges ranging from withholdings to garnishments for child support or unpaid debts, retirement contributions, idiosyncratic payment scheduling, and more.

Here’s a quick look at the ins and outs of conducting payroll in Florida.

The Subtleties of Payroll Pose Significant Challenges

As is often said, the devil is in the details. Payroll would be quick and easy if it merely required cutting a weekly check for employee labor. However, no two employers are exactly the same in terms of payment schedules, retirement plans, benefits, and other nuances. Add in federal and state regulations, and payroll becomes even more complex.

Though the sunshine state does not have a litany of state laws, there are some bureaucratic requirements that must be satisfied for payroll to be in accordance with the law. As an example, Florida employers must pay SUTA, short for state unemployment insurance tax, also known as reemployment taxes.

If you were to poll Florida business owners and managers who handle payroll in-house, most would quickly admit tackling such a project without assistance from outside experts is inherently challenging. An attempt to manually process payroll makes the project even more difficult. Payroll specialists tap into the computing and automated power of the industry’s best software. However, processing all the subtle details of each employer’s unique payroll presents obstacles.

Payroll in Accordance With Compliance Standards

Payroll that is not processed in accordance with the nuances of state and federal law poses problems for employers. Instead of attempting to overcome the legal hurdles tied to processing payroll on your own, reach out to our payroll compliance specialists. We process payroll, benefits, and more. Our compliance services include full-service payroll along with the processing of employee benefits.

Part of the challenge of payroll in Florida is surmounting legal and bureaucratic hurdles yet entrepreneurs and business professionals with years of experience often overlook the complexities of such challenges. As an example, every business is required to legally establish itself as an official employer before processing payroll.

Employers are required to have an Employer Identification Number, or EIN for short, along with an Electronic Federal Tax Payment System account. The next step in processing payroll as a business owner or manager in Florida is to register with the state. Complete the DR-1 form, submit it to the Record Service Center or submit it on the web with the assistance of our payroll specialists.

Embracing the Challenges of Payroll Processing

No two businesses have exactly the same payroll process simply because businesses are distinct entities with idiosyncratic employment and operational hurdles. Launching a payroll process entails determining the frequency of employee payment, the method of payment, tracking hours worked, and calculating work time.

Though it is possible to still complete payroll by hand, using an Excel template facilitates the process. Ideally, you will lean on a professional payroll service to address the subtleties of processing payroll in Florida on your behalf.

Payroll requires the completion and collection of worker payroll forms. New hires are to fill out and submit documents, including payroll forms, during the onboarding process. The I-9 verification form and W-4 forms are to be completed and filed as soon as possible. Furthermore, it is also prudent to coordinate direct deposit for efficient employee compensation.

Processing Payroll the Right Way

Payroll problems arise when payroll processors are not provided with accurate information or fail to process information correctly. Employee timesheets are essential to the payroll process. There should be a concrete timetable in place for gathering, analyzing, and approving employee timesheets. Though it is within the realm of possibility to use traditional paper time sheets, it is much more efficient to use time and attendance software that is much more economically efficient.

The next step is determining employee compensation on a weekly or bi-weekly basis in accordance with hours worked. Employees are to be compensated for their hours worked or salary for the time period in question with deductions for:

Taxes
Garnishments
Retirement plan contributions
Additional withholdings

Above all, payroll records are to be meticulously filed every single pay period without exception. Payroll taxes are filed with the government. Paying federal taxes is accomplished with either the monthly or semi-weekly EFTPS payment system. Our payroll specialists have the subtleties of IRS guidelines for federal taxes down to a science.

America’s Preferred Payroll is Here for Your Business

Payroll is the type of weekly project best left to those with proven expertise. Instead of attempting to get payroll done right every single time while serving your clients and attending to other important business matters, lean on our specialists to do the work for you. Contact us today at (813) 865-4205 to find out more about how we can help with your payroll, benefits, compliance and more.

What is Florida’s payroll taxes and how do they compare nationally?

app-admin — Tue, 09 Mar 2021 15:28:14 +0000

When you cut a paycheck, there are a lot of deductions. There are federal taxes, state taxes, unemployment insurance taxes, and more. Federal taxes tend to be the biggest chunk, but Florida’s payroll tax is a little different.

Let’s take a look at Florida’s payroll taxes and how they compare to others on a national level — as well as how they are going to be affected by the economic damage of the pandemic.

Florida’s Payroll Taxes

First, Florida is one of the few states without a state income tax. In Florida, you will need to pay federal income taxes; you still do need to pay some income taxes. But you don’t need to pay state income tax. These income taxes are generally made up in sales taxes and property taxes instead; sales taxes and property taxes can compensate for income taxes in terms of the government budget.

Of course, payroll taxes are more than just income tax. They also include unemployment insurance, which is going to be a big adjustment for employers paying their taxes in 2021. Employers may see their tax payments going up substantially because of increased unemployment rates.

This is not yet set in stone; Republican politicians are talking about using part of the stimulus package as a way to reduce the amount of taxes Florida’s employers need to pay. Senate President Simpson has stated that he would be interested in taking $1 to $2 billion of the stimulus package and using it in this way. It’s unclear how much support this initiative would have locally or whether it could get off the ground.

In addition to unemployment insurance, employers will still need to pay health care, any retirement account matching, and other benefits as a part of their payroll deductions. Because the situation is changing so rapidly in terms of unemployment insurance rates and potential economic stimulus, it’s important that employers keep abreast of the current news. A payroll service can help companies that are unsure of their current payroll tax liability.

How Does Florida Compare Nationally?

Florida has much lower payroll taxes than many other states because there are no state income taxes. So, on a national level, paychecks in Florida will have fewer deductions — and pay fewer taxes overall. Only nine states in the United States have no personal income tax. Sales, property, and estate taxes tend to bridge the gap.

Per capita, states with the highest payroll taxes include California ($2,055) and New York ($2,929). Florida has about an average sales tax and an average property tax as well, making it so that many residents in Florida pay fewer taxes overall. The average state payroll tax is about 6 percent across the board.

But again, this could be much higher this coming year, as unemployment insurance is likely to skyrocket. Many more employees in the past year have been unemployed than in virtually any period before. Unless part of the economic stimulus is used to alleviate these costs, employers are going to need to set aside an additional 4 percent or so of their payroll solely to unemployment insurance costs.

Usually, unemployment taxes range from about 0.1 percent to 5.4 percent. The business matters, too; an organization’s history, in terms of unemployment, is calculated into their rate. Consequently, employers who have seen more layoffs than others are going to see higher rates than those who have been able to retain their employees throughout.

When business owners make mistakes with their accounting, it’s most commonly because of payroll. Not only is payroll complicated, but it changes quite often. If you want to get your payroll correct every time without worry, it may be time to outsource your payroll operations. Contact us to find out more.

2020 Effects on Tampa area businesses and how they should prepare for 2021

app-admin — Tue, 12 Jan 2021 15:25:31 +0000

There’s no arguing that many Tampa area businesses are hurting economically right down. Repeated closures, shutdowns, and a population in quarantine have made it difficult for most businesses to operate — even those that aren’t service-oriented. But the businesses that have survived in 2020 are going to see a better 2021, they just have to hold on. How will businesses need to prepare for 2021?

2020’s Impact on Businesses

Most businesses had a very lean year. Some companies may have had revenue that was half or even a quarter of their prior year, especially toward the end of 2020. Some retailers may not have gone into the black during the Christmas spending months because Christmas spending was down. Other businesses found themselves struggling with being able to operate at all. Companies moving into 2021 likely have expended much of their cash and maybe hurting in terms of capital. They may need to take on loans and operate in a smaller fashion until recovery.

Get Your Books In Order

When times get lean, it becomes even more important for businesses to be conscientious about their books and their spending. Having a thorough set of books can help secure funding, grants, loans, and investments, and it’s important to know exactly where you stand in terms of assets and cash position. The first step may be to hire a bookkeeper or accountant — or to go through services such as payroll services so that everything is automatically tracked. You’ll be able to pivot and adapt much faster if you have control over your company’s spending.

Streamline Your Business Processes

Many organizations will need to pare down, automate, and streamline their processes. Making processes faster and easier means that you have more time to concentrate on other things, such as marketing and adapting to a new space. By streamlining your processes, you will become more adaptive and more focused — rather than trying to spend your time concentrating on things that may not necessarily be in your forte. Many companies, for instance, have found themselves investing in Software-as-a-Service solutions; instead of monitoring or managing their own technological solutions, they outsource it. Likewise, services such as accounting, payroll, and bookkeeping can be outsourced to give business owners more time to strategize and figure out new ideas for a new business landscape.

Choose Between Cutting Back, Holding, and Expanding

2021 is not likely a good time for expansion for most businesses, but because many businesses have gone out of business, it can be a good time for expansion for some. Companies should take a look at their competition and their market. Those that already had significant assets and good cash positions may find themselves ripe for opportunity to grow. For most businesses, though, the best choice is going to be to cut back or to hold their patterns. 2021 is going to be a recovery year for most.

Be Aware of Government Initiatives

Moving into 2021, there are many grants for specific types of business and industry. There may be grants for Tampa businesses specifically, businesses that are restaurants, or businesses that are within a retail space. Companies should keep an eye out for these new business opportunities as they arise, as many are going to need some help for recovery. Other options for Tampa businesses include reaching out to communities and reaching out to private investors — though both of these things require that the business have strong fundamentals and be able to prove that they can survive in the post-2020 world. 2021 will hopefully be a better year financially for businesses. Not only is there government aid available, but the light is at the end of the tunnel when it comes to pandemic-related regulations. But businesses are going to need to be cautious, mindful, and proactive if they are going to be able to thrive rather than just survive.