Managing payroll isn’t just about cutting checks. As a business owner, you’re responsible for a variety of taxes that go along with employing staff. Three key payroll taxes you’ll need to understand are FICA, FUTA, and SUTA. Each plays a different role in funding government programs—and each comes with its own rules.
If you’re running a business in Florida, this breakdown will help you navigate the tax landscape and stay compliant.
FICA stands for the Federal Insurance Contributions Act. This tax funds two critical programs:
Social Security (6.2%)
Medicare (1.45%)
Who pays FICA? Both employer and employee share FICA:
Total FICA tax: 15.3% (Employee pays: 7.65% and Employer pays: 7.65%)
There’s also an additional 0.9% Medicare surtax on high earners (over $200,000), but only employees pay that.
FUTA stands for the Federal Unemployment Tax Act. It helps fund the federal portion of unemployment benefits.
Paid only by employers (not deducted from employee wages)
Standard rate: 6.0%
Applies only to the first $7,000 of an employee’s annual wages
Most employers qualify for a credit of up to 5.4%, reducing the effective rate to just 0.6%
SUTA stands for the State Unemployment Tax Act, and in Florida, it’s known as the Reemployment Tax.
Paid only by employers
In 2025, rates range from 0.1% to 5.4%
Applies to the first $7,000 of wages per employee
Your rate depends on your “experience rating” (i.e., how often your former employees file for unemployment)
➡️ Bonus: Florida does not have a state income tax, which means fewer payroll deductions for employees and fewer forms for employers.
| Tax Type | Who Pays? | Rate | Wage Limit | Purpose |
|---|---|---|---|---|
| FICA | Employer & Employee | 7.65% each | No cap on Medicare, $168,600 cap on Social Security (2025) | Social Security & Medicare |
| FUTA | Employer | 0.6% (after credit) | First $7,000 | Federal unemployment |
| SUTA (Florida) | Employer | 0.1%–5.4% | First $7,000 | State unemployment (Reemployment Tax) |
Payroll taxes are a necessary part of doing business, but they don’t have to be confusing. Understanding FICA, FUTA, and SUTA—especially how they work in Florida—can help you budget correctly and stay on the right side of the law.
Whether you handle payroll in-house or use a provider, staying informed ensures you’re in control.
Need help with payroll compliance in Florida? Please reach out—we’re here to help simplify your payroll experience!