Florida Payroll Tax Payment Plan Options Checklist
Florida's Department of Revenue collects reemployment tax (formerly called unemployment insurance tax) from employers. This tax funds the Unemployment
Compensation Trust Fund, which provides temporary assistance to eligible unemployed workers. When an employer owes unpaid reemployment taxes to the state of Florida, the state offers structured payment arrangements to resolve the debt over time rather than requiring immediate full payment.
Understanding these options matters because payroll tax debt grows quickly with penalties and interest, and addressing it proactively reduces complications. Ignoring reemployment tax obligations can result in liens, levies, wage garnishments, and other enforcement actions that directly affect business operations. This checklist explains the payment arrangements in place, how the process works, and the steps that follow after an arrangement is established.
What This Issue Means
A reemployment tax payment arrangement is a formal agreement between an employer and the Florida Department of Revenue that allows the employer to pay outstanding taxes over a structured schedule. For current quarterly taxes, Florida offers an installment payment option that will enable employers to divide payments into smaller amounts due throughout the year. For delinquent taxes, the Department may approve stipulated time payment agreements on a case-by-case basis.
These arrangements establish fixed payment schedules, typically monthly, based on the amount owed and the taxpayer's financial circumstances. This is an administrative
arrangement, not a reduction of what is owed, but rather a structured way to satisfy the debt over a defined period.
Why the State Offers Payment Arrangements
Florida's Department of Revenue offers payment arrangements because collecting taxes through structured schedules is often more effective than pursuing immediate full payment or enforcement actions. Payment arrangements allow businesses to remain operational while meeting their tax obligations, thereby resulting in more reliable revenue collection for the state. The Department may propose or approve an arrangement when an employer demonstrates the inability to pay the full balance but shows willingness and capacity to make regular payments.
What Happens If a Payment Arrangement Is Not Pursued
or Is Ignored
If an employer with unpaid reemployment taxes does not establish or maintain a payment arrangement, the state typically escalates collection efforts. The Department of
Revenue may issue notices of intent to levy, place liens against business or personal assets, garnish bank accounts, intercept tax refunds, or pursue other collection actions.
If the debt remains unpaid for 90 days, the Department will charge a 10% administrative collection processing fee.
Without a structured agreement in place, the debt continues to accrue penalties and interest, resulting in a significant increase in the total amount owed over time. Failure to respond may also result in the account being sent to a private collection agency, with additional fees charged.
What This Does NOT Mean
A payment arrangement does not mean the taxes owed have been forgiven, reduced, or eliminated. Establishing an arrangement does not automatically stop penalties and interest from accruing, though the calculation method may vary depending on the specific agreement. A payment arrangement is also not a guarantee that enforcement actions will not occur if payments are missed or the agreement terms are violated.
Checklist: Florida Payroll Tax Payment Plan Options
Step 1: Verify the Debt and Obtain Official Documentation
Gather all notices from Florida's Department of Revenue regarding reemployment tax debt. Review each notice carefully to identify the specific tax type, the amount owed, the tax periods covered, and any deadlines. Contact the Department of Revenue's Taxpayer
Assistance line at (850) 488-6800 to confirm the exact balance owed and verify that
there are no discrepancies in the department's records.
Request written confirmation of the amount owed, including any penalties and interest already assessed. Keep all correspondence and documentation in one organized file for reference throughout the payment process.
Step 2: Assess Current Financial Capacity
Calculate the employer's current cash flow and available funds for tax payments.
Determine what monthly payment amount is realistically achievable without preventing payroll or critical business expenses. Review the total debt owed and estimate how long a payment schedule might need to be to allow manageable payments. Document this information in writing for use in the following steps.
Step 3: Contact Florida's Department of Revenue About Payment Options
Call the Department of Revenue's Taxpayer Assistance at (850) 488-6800 during business hours (Monday through Friday, excluding holidays). Explain that you have an unpaid reemployment tax debt and want to explore payment arrangement options. Be prepared to provide the employer's federal Employer Identification Number (EIN), the amount owed, and a proposed monthly payment amount based on your financial assessment.
Ask the representative to explain what payment options are available for your specific situation. For delinquent taxes, you may be required to visit or call one of the
Department's local service centers to request a stipulated time payment agreement.
Request that any payment terms be provided in writing before you commit to the arrangement.
Step 4: Provide Financial Documentation if Required
If seeking a stipulated time payment agreement for delinquent taxes, the Department will require financial documents that support your inability to pay the debt in full. Be prepared to pay a minimum of 25% down and agree to pay the full balance within a year. Gather bank statements, profit and loss statements, and other financial records that demonstrate current business circumstances.
Submit all requested documentation promptly to avoid delays in the approval process.
Step 5: Request Payment Agreement Terms in Writing
If the Department of Revenue approves a payment arrangement, confirm that all terms are provided in writing before making any payments. Verify that the written terms include the total amount owed, the payment amount, the payment frequency (monthly or
other), the due date(s), the accepted payment method(s), and the start date. Confirm what happens if a payment is missed or late, including whether additional penalties are imposed.
Ask whether penalties and interest continue to accrue during the payment period, and if so, at what rate—request contact information for the assigned administrator or the department section handling the account.
Step 6: Establish a Reliable Payment Process
Set up a calendar reminder system for each scheduled payment due date to prevent missed payments. Determine which payment method to use (online through Florida's tax system, automatic bank draft, check, or other method) and confirm the Department accepts that method. If paying by check or electronic transfer, verify the correct mailing address or payment processing system.
Keep detailed records of each payment, including the date, amount, check or confirmation number, and method used. Set aside funds in a dedicated account or reserve to ensure payment amounts are available when due.
Step 7: Make the First Scheduled Payment
Follow the payment method and processing instructions provided by the Department of
Revenue. Make the payment by the specified due date to avoid triggering late payment penalties or defaulting on the arrangement. Retain proof of payment (cancelled check, online confirmation receipt, or bank statement showing the transaction). If paying by mail, allow sufficient processing time and consider sending payment several days before the due date.
Step 8: Monitor the Account and Maintain Records
Keep a running log of all payments made under the payment arrangement, including dates and amounts. Periodically verify that payments are being credited correctly by contacting the Department of Revenue or checking your account online, if available.
Retain all written communication from the Department regarding the payment arrangement, including any modifications or status updates.
Report any discrepancies or questions about account credits immediately to the
Department.
Step 9: Address Changes to Business Circumstances
If business circumstances change and the current payment amount becomes unaffordable, contact the Department of Revenue before missing a payment. Explain the changed circumstances and request consideration for modifying the payment terms
(adjusting the amount or extending the timeline). Request any modification in writing before implementing the new arrangement.
Do not simply stop making payments or reduce amounts without departmental approval, as this typically triggers default and enforcement action.
- Missing scheduled payments, even by a few days, can result in the payment
- Not responding to the Department's follow-up notices during the payment period
- Sending payment without identifying information (such as the employer's EIN and
- Assuming the arrangement covers all tax periods is dangerous; payment
- Failing to update contact information with the Department when the employer's
- Making partial payments without departmental authorization is typically treated as
- 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: Complete Payments According to the Plan
Continue making scheduled payments until the full agreed amount is paid. Verify receipt and crediting of the final payment. Request written confirmation from the Department of
Revenue that the reemployment tax debt under the payment arrangement has been satisfied.
What Happens After a Payment Arrangement Is
Completed
Once all payments under an arrangement have been made and the debt is satisfied, the
Department of Revenue typically issues written confirmation that the account is closed or settled. Depending on the circumstances, any liens associated with the unpaid taxes may be released. It is advisable to request this release in writing and to monitor credit reports or public records to confirm the lien has been removed.
Follow-up notices may still arrive if other unpaid tax periods exist that were not part of the original payment arrangement.
Common Mistakes to Avoid arrangement being defaulted. Once defaulted, the full remaining balance may become immediately due, and enforcement action may resume. can lead to misunderstandings about payment status or the terms of the arrangement. account reference number) may result in fees being deposited into a general account rather than credited to the specific reemployment tax debt. arrangements typically cover specific tax periods or a specific amount, and other unpaid periods may result in separate collection action. mailing address changes can cause missed notices and unintended defaults. a missed or incomplete payment and can trigger default.
Facing State Tax Enforcement Action?
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