Florida Payroll Tax Default Prevention Checklist
Reemployment tax is Florida's unemployment insurance tax paid by employers based on wages paid to employees. The Florida Department of Revenue requires employers to report wages and pay reemployment tax quarterly using specific tax forms. If reemployment tax files are not submitted or taxes are not paid on time, the state may issue notices, assess penalties and interest, or take collection action against the business.
Understanding what reemployment tax obligations are and how the state enforces them can help prevent escalating compliance problems. Ignoring reemployment tax issues typically makes them worse, as penalties accumulate and the state's enforcement options expand over time. This checklist explains what reemployment tax defaults are, why they occur, what happens next, and the steps to address them under Florida
Statutes governing tax collection.
What This Issue Means
Reemployment tax default occurs when an employer fails to file a required quarterly
report (Form RT-6) or fails to pay reemployment taxes by the deadline set by the Florida
Department of Revenue. This includes the state unemployment insurance tax based on employee wages, which is separate from sales and use tax and the Florida Corporate
Income Tax. A default can also result from underpayment or depositing less than the full amount owed.
The state may issue a delinquency notice when a quarterly report is late or when payment does not arrive by the required date. This notice alerts the employer to a
compliance issue and the need for corrective action. Florida reemployment tax is distinct from federal tax obligations: employers must still withhold and remit federal income tax, Social Security, and Medicare taxes separately to the Internal Revenue
Service.
Why the State Issued This or Requires This
The Florida Department of Revenue monitors reemployment tax filing and payment schedules to ensure employers are meeting their quarterly obligations on time. When a quarterly report (Form RT-6) is not received or payment is not posted by the deadline, the state's system typically flags the account automatically. The state requires regular quarterly reemployment tax payments because these funds support the Reemployment
Assistance program and are held in the Unemployment Compensation Trust Fund to pay benefits to eligible workers.
If payments are missed, the state's revenue stream is interrupted, and the unemployment insurance program cannot function properly. Quarterly reports are due by the end of the month following each calendar quarter: April 30, July 31, October 31, and January 31. Delinquency notices are issued as the first step in the enforcement process to notify employers of the problem and request corrective action under applicable tax laws.
What Happens If This Is Ignored
If reemployment tax delinquencies are not addressed, the Florida Department of
Revenue typically escalates collection efforts under its statutory authority. This may include issuing additional notices demanding payment, assessing penalties and interest on the unpaid balance, and potentially filing a tax lien against the business. In cases of
repeated or substantial defaults, the state may pursue other enforcement actions, including wage garnishment under garnishment laws, bank levies, or license suspension.
The longer a reemployment tax debt remains unresolved, the larger the total amount owed becomes due to compounding penalties and interest. Penalties include $25 for every 30 days or fraction thereof that a report is late, plus interest on unpaid tax.
Ignoring these notices typically does not make the problem go away and typically results in more aggressive state action over time, potentially including administrative garnishment proceedings.
What This Does NOT Mean
Receiving a reemployment tax delinquency notice does not mean the business has been criminally charged or that personal liability has been automatically imposed on the business owner or property owner. The notice is an administrative action, not a criminal proceeding. The state has not yet filed a tax lien or initiated wage garnishment simply by issuing the first notice.
A delinquency notice indicates a compliance problem that requires attention, but it is not proof that penalties have been finalized or that all collection options have been exhausted. The employer still has the opportunity to resolve the issue by filing the quarterly report, making the payment, or contacting the state to discuss the situation.
Florida reemployment tax is separate from state income tax: Florida does not have state income tax, so there is no state income tax withholding requirement for employers.
Checklist: What to Do After Receiving This or Identifying
This Issue
Step 1: Locate and Review All Notices
Gather all notices from the Florida Department of Revenue related to reemployment tax.
Note the type of notice, the tax period involved, and any deadlines listed. Confirm the business name, reemployment tax account number, and contact information shown on the notice to ensure accuracy.
Step 2: Review Business Payroll Records
Locate payroll records, employee wage information, and payment records for the tax period in question. Identify which quarterly periods have unfiled reports or unpaid amounts. Note whether payments were made late, underpaid, or not made at all, as this will determine the scope of the tax debt.
Step 3: Verify Filing and Payment Deadlines
Check the official Florida Department of Revenue website for the required filing and payment deadlines for the specific quarterly period. Confirm which schedule applies to the business: quarterly reports are due April 30, July 31, October 31, and January 31.
Determine whether a report was filed and when any payments were posted to avoid additional delinquent tax penalties.
Step 4: Gather Documentation
Collect copies of filed quarterly reports (Form RT-6), payment receipts, cancelled checks, and bank statements showing reemployment tax payments. If reports were not filed, gather all payroll data and wage information needed to prepare the quarterly
report. Keep records of any correspondence with the state related to the delinquency, as these documents may be important if the matter escalates.
Step 5: Determine the Scope of the Problem
Identify all affected quarterly periods to understand the full extent of the tax liability.
Calculate the total amount of unpaid reemployment taxes, if known, including any penalties and interest that have accrued. Note whether this is a single-quarter issue or a pattern across multiple quarters, as repeated delinquencies may result in more aggressive collection action.
Step 6: Contact the Florida Department of Revenue
Call the Department of Revenue at (850) 488-6800 or visit the official website to locate the appropriate contact for reemployment tax issues. Ask for clarification on what is owed, which quarterly periods are affected, and what deadlines apply. Request information about the current balance, including tax, penalties, and interest, to understand the total amount due.
Step 7: File Any Missing Quarterly Reports
If quarterly reports were not filed, prepare and file the required Form RT-6 (Employer's
Quarterly Report) for each affected quarter through the appropriate reemployment tax sites. Include accurate payroll data, wage amounts, and employee Social Security numbers for all employees. File electronically through the Department of Revenue's online system or by mail, as specified on the state website.
Form RT-6 is the correct form for reemployment tax reporting and should not be confused with other tax forms, such as Form DR-15, which is for sales and use tax file
submissions. Accurate completion of these tax forms is essential to resolve the delinquency and avoid additional penalties for incomplete or inaccurate reporting.
Step 8: Make Payment or Arrange a Payment Plan
If funds are available, remit payment for the full balance owed through the state's designated pay websites or secure payment systems. If full payment is not possible, contact the Department of Revenue to inquire about payment arrangements or a formal payment plan. Ensure any payment is submitted with the correct account information and quarterly period identification to ensure proper posting.
The state may offer installment payment options for employers who file and pay on time but cannot afford the full amount in a single payment. An installment fee of $5 per calendar year applies when electing this option. Payment arrangements can help businesses manage tax liability while avoiding more severe collection actions.
Step 9: Obtain Confirmation
Request written confirmation from the state that the quarterly report was filed, payment was received, and posted to your account. Keep copies of all filing confirmation notices and payment receipts in your business records. Verify that the account status has been updated to reflect compliance and that no additional amounts are owed for the resolved periods.
- Missing deadlines on state notices: State notices typically include a response
- Filing incomplete or inaccurate reports: Quarterly reemployment tax reports must
- Making partial payments without contacting the state: Sending a partial payment
- Ignoring follow-up notices: The state may issue multiple notices regarding the
- Failing to keep records of submission: Always obtain and retain proof that reports
- Not addressing the underlying problem: If payroll processing errors caused the
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 10: Review Internal Payroll Processes
Examine how reemployment taxes are calculated and paid within the business to identify weaknesses in the process. Identify any systemic issues that may have caused the delinquency, such as missed deadlines or calculation errors. Document any
corrective steps taken to prevent future delinquencies, including setting quarterly calendar reminders for filing deadlines and ensuring responsible staff members understand their obligations.
What Happens After This Is Completed
After a quarterly report is filed and payment is made, the Florida Department of
Revenue typically processes the submission and updates the account. The state will send confirmation that the report has been received and that the payment has been posted. If the full amount owed has been paid, the delinquency status is typically resolved, though the account may continue to reflect the historical delinquency for record-keeping purposes.
If only a partial payment is made or a payment plan is established, the state will send notice of the agreed-upon terms and any remaining balance. Processing time varies, but the state typically updates the account status within 2 to 4 weeks after submission.
Employers should monitor their accounts to ensure proper resolution and to confirm that benefit charges are being calculated correctly based on timely reported wages.
Common Mistakes to Avoid deadline under Florida Statutes governing administrative procedures. Failing to respond or take action by that date can result in additional penalties and escalated enforcement action, potentially including administrative garnishment or other collection methods. include accurate employee wage data and Social Security numbers. Incomplete
or incorrect reports may be rejected or may not resolve the delinquency.
Penalties of up to $300 may be imposed for reports with incorrect or missing
Social Security numbers, as these errors prevent wages from being properly credited to employee accounts. without first contacting the state to arrange a plan may not resolve the issue and could result in continued collection efforts. The state may not recognize unofficial payment arrangements and may proceed with collection action despite receiving partial payments. same delinquency as the matter progresses through the collection process.
Ignoring any of these notices can result in more aggressive enforcement actions, including the filing of tax liens or the initiation of wage garnishment proceedings under applicable garnishment laws. were filed, and payments were made through the state's systems. Confirmation numbers, receipts, and bank records are important documentation that may be needed to dispute billing errors or to demonstrate timely compliance if questions arise later. delinquency, failing to correct those errors may result in future delinquencies.
Employers should review their processes and implement safeguards to ensure ongoing compliance with quarterly reporting and payment obligations.
Frequently Asked Questions
Does a reemployment tax delinquency notice mean the business is being sued?
No. A delinquency notice is an administrative notice issued by the state's tax collection authority regarding a compliance problem. It is not a lawsuit or legal action filed in
Circuit Court. It is the state's way of informing the business that a quarterly report was not filed or a payment was not made on time.
What is the difference between the tax owed and the penalties and interest?
The tax owed is the original amount of reemployment taxes that should have been paid based on employee wages. Penalties are additional fees imposed by the state for late filing or payment, calculated at $25 for every 30 days or fraction thereof that a report is late. Interest is the cost of owing money over time, charged at rates set by statute. All three components make up the total balance owed and must be paid to resolve the delinquency.
How long does the state have to collect unpaid reemployment taxes?
The Florida Department of Revenue is generally subject to a three-year statute of limitations on tax assessments from the date the tax return was due or filed under
Florida Statutes. However, this may not apply if no return was filed or if fraud is involved. A tax professional can provide information about statute of limitations rules that may apply to specific situations.
If the business cannot afford to pay the full amount, what are the options?
The Florida Department of Revenue may offer a payment plan or other arrangements for businesses that cannot pay in full immediately. Contact the department directly to
discuss available options. Installment payment plans may be available for employers who file and pay on time but need additional time to satisfy their full tax liability.
Will penalties be reduced or eliminated if the report is filed late?
Penalty abatement or reduction is not automatic under the state's enforcement procedures. The state may consider penalty relief requests in certain circumstances, but this is not guaranteed. Contact the Department of Revenue to inquire about the policy for the specific situation and to understand what documentation may be required to support a request for relief.
What if the business believes the notice is an error?
Contact the Florida Department of Revenue directly to dispute or clarify the notice through the appropriate administrative channels. Provide documentation showing that the report was filed or the payment was made on time, if applicable. The state has procedures for resolving disputes and correcting errors in its records.
Does filing a missing report immediately stop collection efforts?
Filing a late report typically stops further escalation of collection efforts, but it does not eliminate penalties and interest that have already accrued on the delinquent taxes. The state will assess penalties based on the late filing of the report and will continue to charge interest until the full balance is paid.
Facing State Tax Enforcement Action?
If you’ve received a notice related to sales tax or payroll tax enforcement and are unsure how to respond, our team can help you understand your options and next steps.
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