Florida Payroll Tax Nonpayment Emergency Checklist
Reemployment tax nonpayment occurs when a business fails to remit required unemployment taxes to the Florida Department of Revenue. This is distinct from filing late returns; it means explicitly that taxes were owed but not paid on time.
Reemployment tax is paid entirely by employers as a business cost and funds employee contributions to unemployment compensation for eligible workers.
When these taxes go unpaid, the state's collection process typically escalates from notices to enforcement action. Failing to pay reemployment tax can result in a tax lien, levies, a business license suspension, and severe financial consequences.
Understanding the stage your account is in and what steps the state will take next will help you respond appropriately and avoid further penalties or enforcement action. This checklist explains what reemployment tax nonpayment means, why it matters, and what to do if you are facing this issue.
What This Issue Means
Reemployment tax nonpayment means your business owes state unemployment taxes that have not been paid by the deadline. These taxes are based on wages paid to your employees and are calculated as a percentage of the first $7,000 in wages paid to each employee during a calendar year.
The nonpayment may apply to one or more quarters, and the state's records show a past-due balance on your business tax account. This is a compliance issue that puts your business in a delinquent status with the Department of Revenue. It differs from a late filing because your return may have been filed on time, but the payment itself did
not arrive or was insufficient. Understanding your tax debt is the first step toward resolution.
Why the State Issued This or Requires This
Florida requires businesses to remit reemployment taxes on a quarterly schedule managed by the Florida Department of Revenue. When a payment is not received by the due date, the account is flagged as delinquent for state taxes. The state's record systems automatically identify unpaid balances and generate notices to alert the business.
According to Florida Department of Revenue procedures, nonpayment triggers a series of administrative actions designed to collect the debt and encourage compliance. The state does not manually review each account before issuing a first notice; the process is automated once a payment deadline passes without payment received. This systematic approach ensures consistent enforcement of revenue laws across all employers.
What Happens If This Is Ignored
If reemployment tax nonpayment is not addressed, the state typically escalates collection efforts over time. The Department of Revenue may issue multiple notices requesting payment, assess additional penalties based on the applicable interest rate, and eventually file a tax lien against your business assets. In some cases, the state may suspend your business license or professional license, preventing you from legally operating.
The state may also pursue collection through wage garnishment or bank levy if a payment plan or resolution is not established. Florida Statutes provide for a lien that
expires five years after the date the tax is assessed or becomes delinquent, whichever is later. Collection actions must be initiated within this timeframe. The clerk of the circuit court maintains records of filed tax liens, which become part of public records and can affect your ability to obtain credit or sell property.
In extreme cases involving willful nonpayment, the state may refer accounts to a debt collection agency for further action.
What This Does NOT Mean
Reemployment tax nonpayment does not automatically mean criminal charges will be filed or that you are facing immediate business closure. It does not mean the state has frozen your bank accounts or seized your property; those actions come later if the debt remains unpaid. Receiving a nonpayment notice does not mean you have lost all options to resolve the issue or negotiate a payment arrangement.
The nonpayment notice itself is not a tax lien, levy, or license suspension; it is a demand for payment and an alert that escalation may follow. Unlike sales tax issues, property appraiser assessments, or real property taxes managed by the county tax collector, reemployment tax is specific to employer obligations for unemployment insurance administered by the Florida DOR.
Checklist: What to Do After Receiving This or Identifying
This Issue
Step 1: Locate and Review All Notices and Documents
Gather any notices from the Florida Department of Revenue regarding reemployment
tax nonpayment. Review the notice carefully for the tax period(s) owed, the assessment
amount due, any penalties or interest listed, and the date by which payment is requested. Note any deadline mentioned in the notice and whether the notice was sent by registered mail or regular mail. Keep all documents together in one place for reference.
Step 2: Verify the Account and Tax Period Information
Contact the Florida Department of Revenue at (850) 488-6800 or visit the online portal to confirm your business account details and the exact amount owed. Verify that the tax period, amount, and account number match your records. Request a detailed statement showing the breakdown of principal tax, penalties calculated at the current interest rate, and any other charges. Confirm whether the debt applies to one quarter or multiple quarters. You may also check whether your business has any other outstanding tax problems with the state, including issues related to your certificate of registration.
Step 3: Check Your Payment Records
Review your business bank statements and records to determine whether a payment was made but not received or applied to the wrong account. Check for confirmation numbers, receipts, or payment verification from the Department of Revenue. If a payment was made, gather proof of payment, including the date sent, the payment method (check, electronic transmission, or other electronic means), and any confirmation from your bank. Electronic payments provide instant confirmation and reduce the risk of payment processing errors.
Step 4: Determine If There Is a Filing Issue, a Payment Issue, or Both
Review whether you filed the Employer's Quarterly Report (RT-6) on time but did not pay, or whether both the return and payment are outstanding. Contact the Department
of Revenue to confirm whether returns have been filed for the delinquent period(s).
Identify whether the nonpayment is due to a missed deadline, a payment that was lost in transit, or an inability to pay the amount owed. Understanding the nature of your tax problems will help you develop an appropriate resolution strategy and avoid a noncompliant filing event.
Step 5: Calculate the Total Amount Due, Including Penalties and Interest
Request a current balance statement from the Florida Department of Revenue showing all charges as of today. The total will include the original tax owed plus any penalties and interest accrued since the deadline at the rate specified in Florida Statutes. Note that penalties and interest continue to accrue while the account remains unpaid.
Understand that the amount may exceed the original payment due to these additional charges. Interest accrues at a rate calculated under Florida law on unpaid contributions from the date due until payment is received, similar to how interest accrues on delinquent tax obligations in other contexts.
Step 6: Determine Your Ability to Pay in Full
Assess whether you can pay the entire tax debt immediately or whether you need time to gather the funds. If you can pay in full, prepare to remit payment as soon as possible to avoid further escalation. If you cannot pay in full, determine how much you can pay and what timeline you could meet for the remaining balance. Be realistic about your financial situation when considering payment options, and consult with a certified public accountant if needed.
Step 7: Contact the Florida Department of Revenue Before Any Deadline
Passes
Reach out to the Department of Revenue to discuss your situation. You can call (850)
488-6800, contact the agency in writing, or visit a local office. Explain your circumstances and whether you can pay in full, partially, or need to arrange a payment plan. Provide any proof of payment you have if a payment was sent but not received or applied. The Department maintains confidential information about taxpayer accounts, so be prepared to verify your identity and provide documentation as requested.
Step 8: Explore Payment Plan Options If Full Payment Is Not Immediately
Possible
Ask the Department of Revenue about installment payment agreements or other arrangements available for your situation. Florida offers a statutory installment payment option for employers who file and pay timely, allowing payment of reemployment tax due in the first three quarters in equal installments for a $5 annual fee. The Department may also negotiate other payment arrangements in certain circumstances through a compliance agreement, similar to how governmental units may structure debt payment schedules. Request information about how to apply for a payment plan and what documentation is required. Understand that entering a payment agreement typically requires you to make initial payments and meet ongoing deadlines.
Step 9: Submit Any Payment Arrangement Request in Writing
If the Department of Revenue indicates that a payment plan may be available, submit your request in writing. Include your business name, tax identification number, the tax period(s) in question, the amount you are requesting to pay monthly, and the number of
months over which you propose to pay. Include a brief explanation of your circumstances if relevant. Keep a copy of your request for your records. Written documentation protects both you and the state by creating a clear record of the agreement terms and helps avoid disputes later.
Step 10: If Making a Payment, Use an Official Department of Revenue
Payment Method
Do not send cash through the mail. Use one of the official payment methods provided by the Florida Department of Revenue, such as a check, an electronic funds transfer, or online payment through the state's system. Include your account number and tax identification number with any payment. Request a receipt or confirmation of payment for your records. Electronic payment methods provide immediate confirmation and faster processing than mailed checks, reducing the risk of delays or lost payments.
Step 11: Document All Communication With the Department of Revenue
Keep records of every call, email, letter, or visit to the Department of Revenue regarding this account. Note the date, time, name of the person you spoke with (if applicable), and a summary of what was discussed or agreed upon. Save any emails or written responses from the agency. This documentation will be necessary if disputes arise about what was agreed upon or when payments were made. If you work with a notary public or certified public accountant, ensure they also maintain proper documentation of all tax-related communications.
Step 12: Follow Any Agreed-Upon Payment Schedule Strictly
If a payment plan has been established, make each payment on the date required and through the method agreed upon with the Department of Revenue. Missing a payment
on a plan may result in the plan being cancelled and renewed enforcement action. Keep proof of every payment made. Contact the Department of Revenue immediately if you cannot make a scheduled payment. Consistent compliance demonstrates good faith and helps maintain your payment arrangement, preventing the account from being referred to a debt collection agency.
Step 13: File All Future Reemployment Tax Returns on Time
Beginning with your next quarterly filing deadline, file the Employer's Quarterly Report
(RT-6) on or before the due date. This demonstrates compliance and helps prevent additional delinquent tax situations. Separately, continue to address the outstanding reemployment tax debt through your payment plan or individual payment arrangement.
Do not allow new reemployment tax obligations to become delinquent while addressing the past-due amount. Timely filing protects your business from additional penalties and demonstrates your commitment to compliance with revenue laws.
- Missing the deadline to respond to a tax notice can accelerate collection efforts
- Sending payment without including account or identification information may
- Ignoring multiple notices is a critical error that can lead to serious consequences.
- Continuing to miss reemployment tax deadlines while addressing past-due debt
- Failing to document communication with the Department of Revenue can lead to
- Assuming a verbal agreement with the Department of Revenue is final is risky
- 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 14: Monitor Your Account for Additional Notices
Continue to check your mail and email for any further notices from the Department of
Revenue regarding this account. If you receive additional notices or threats of enforcement action (such as a tax lien filing with the clerk of the circuit court or levy notices), respond immediately and provide proof of your payment plan or recent payments if applicable. Keep the agency informed of any changes to your business address or contact information. Prompt communication helps prevent misunderstandings and enforcement escalation that could result in more serious collection actions.
What Happens After This Is Completed
After you complete these steps and have either paid in full or established a payment plan with the Florida Department of Revenue, the agency will typically process your payment or payment agreement and update your account status. If you have paid in full, your account will be marked as current, and no further collection action should be taken on that debt.
If a payment plan has been accepted, you will receive written confirmation of the agreed-upon terms and payment schedule, similar to how other governmental units document payment arrangements. The Department of Revenue will continue to monitor your account to ensure payments are made as agreed. If payments are made on time, enforcement actions such as filing a tax lien with the clerk of the circuit court or suspending a license typically do not proceed.
Common Mistakes to Avoid and lead to immediate enforcement action. Always review notices for specific dates and respond before the deadline passes to maintain your options for resolution. result in costs being credited to the wrong account or held in suspense. Always include your business name, tax identification number, and account number with any payment to ensure funds are correctly applied.
If you receive more than one tax notice regarding the same debt, do not assume
the issue has been resolved. Respond to each tax notice and provide proof of payment or an explanation to demonstrate your engagement with the resolution process. creates additional delinquent tax accounts and demonstrates ongoing noncompliance. Prioritize timely filing and payment of current obligations while addressing past-due amounts to avoid compounding your tax problems. disputes about agreements or payment terms. Without written records of agreements or payment plans, you may have difficulty proving what was promised or when payments are due. Keep detailed notes and save all written correspondence as part of your confidential information records. and may leave you without legal protection. Payment plans and other arrangements should be confirmed in writing. Until you receive written confirmation, the agreement is not officially in place and may not be enforceable.
Frequently Asked Questions
If I did not receive a notice, am I still responsible for the reemployment tax debt?
Yes. Responsibility for reemployment taxes is based on Florida Statutes and your filing obligations, not on whether you received a notice. However, if you believe you did not receive a notice and the Department of Revenue should have been able to contact you, contact the agency to confirm your address and request that a tax notice be resent.
Can the Department of Revenue automatically take money from my business bank account without warning?
Not without a formal enforcement action first. Before a bank levy is issued, the agency must typically send notices and provide an opportunity to respond. However, if your account remains seriously delinquent, the state may eventually pursue a levy.
Responding to notices and establishing a payment plan helps prevent this step.
If I pay part of what I owe now, will the rest of the debt be forgiven?
No. Partial payments do not result in forgiveness of the remaining balance. Interest and penalties typically continue to accrue on unpaid amounts at the applicable interest rate.
However, making a partial payment demonstrates a good-faith effort and may support a request for a payment plan.
What is the difference between a tax lien and a tax levy?
A tax lien is a legal claim against your business or personal property as security for the debt, filed with the clerk of the circuit court and recorded in public records. A levy is the actual seizure or freezing of assets to satisfy the debt. A tax lien typically comes first and is a warning that a levy may follow if the debt is not paid.
If my business has closed, am I still responsible for outstanding reemployment taxes?
Yes. Closing a business does not erase reemployment tax obligations under Florida
Statutes. The Department of Revenue may pursue collection against the company and, if appropriate, against responsible individuals, depending on the circumstances. Contact the Department of Revenue to determine your responsibilities and the options available.
How long does the Department of Revenue have to collect reemployment taxes?
Under Florida Statutes, tax liens expire five years after the date the tax is assessed or becomes delinquent, whichever is later. Collection actions, including filing a notice of lien with the clerk of court, must be initiated within five years after the date the contribution was due.
Will paying the reemployment tax debt stop penalties and interest from accumulating?
Penalties and interest typically stop accumulating once the account is paid in full.
However, they continue to accrue at the applicable interest rate while the account remains unpaid, even if you are on a payment plan. This means your total tax debt may grow if the account remains unpaid for an extended period.
Facing State Tax Enforcement Action?
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