In the Know
Florida Department of Revenue and You
Florida Unemployment Tax
Due: January 31, April 30, July 31, October 31
Floridians are required to report wages and pay taxes to the Unemployment Compensation program if they paid $1,500 in wages within a calendar quarter, have employed one person for any portion of a day in 20 different weeks during the calendar year or are liable for federal unemployment tax (FUTA). (A business owner who is the only employee must pay taxes on his or her own wages if the business is a corporation.) The initial tax rate for new employers is 2.7% for the first 10 calendar quarters (or in some cases 11 quarters), at which time the business will receive a computed tax rate. The maximum tax rate allowed by law is 5.4%. Unemployment taxes must be paid on the first $7,000 of wages paid to each employee per year. Taxes are paid quarterly on form UCT-6 to the Florida Department of Revenue. Businesses that pay taxes on 10 employees or more in any calendar quarter must use e-filing.
Florida Sales and Use Tax
Due: First day of the month
Florida businesses must collect sales tax for many products and services. Check with the Florida Department of Revenue to determine what's taxable. If your business will involve taxable transactions, you must register as a sales and use tax dealer (form DB-1). Most businesses pay monthly on form DR-15, with returns and payments due on the first day of the next month after the tax was collected. Payments are late after the 20th of the month. Thus, tax collected in April would be due May 1 and would be late after May 20. Businesses that file $1,000 or less per year, however, may file quarterly. If a business files $500 or less, it may file annually. Businesses that pay $30,000 annually in sales and use tax are required to file electronically at myflorida.com/dor.
Florida Discretionary Surtax (Local Option)
Due: First day of the month
Many Florida counties impose an additional discretionary sales surtax on transactions that are subject to the state sales and use tax. The discretionary sales surtax applies to the first $5,000 of any single taxable item when sold to the same purchaser at the same time. Written purchase orders or agreements and certain bulk sales may qualify for the $5,000 limitation.
Businesses report the surtax on form DR-15 with sales and use tax. These local option taxes range from 0.25% to 1.5%. new rates become effective on January 1 each year, but expiration dates vary. In 2006, 58 of Florida's 67 counties impose sales surtaxes.
Use Tax on Out-of-State Purchases
Due: First day of the month after the quarter in which the purchase was made.
This tax applies to items purchased out of state from internet sites, mail order catalogs, auctions, shopping networks or toll-free shopping services. It is also imposed on items purchased during out-of-state travel when the merchandise is shipped to the individual's home or business's location in Florida. Form DR-15MO is used to make payment.
Florida Intangible Personal Property Tax
Due: June 30 For 2006
Florida corporations and individuals who manage, own or control intangible personal property (such as stocks, bonds, mutual funds and leases) must file an annual Intangible Personal Property Tax Return (form DR601C for corporations and DR601I for individuals). The tax was repealed effective Jan. 1, 2007.
There is a $250,000 exemption for businesses, and the minimum payment is $60. (If the tax due, before taking a discount for early filing, is less than $60, you are not required to pay the tax or file a return.) So if a business had $350,000 in intangible personal property, $250,000 would be exempt and the business would owe 0.5 mill (50 cents per $1,000) on the remaining $100,000. But, since that would put the tax at $50, the business would not have to pay or file.
Florida Tangible Personal Property Tax
Due: April 1
Florida businesses that own tangible personal property (equipment, furniture, computers, etc.) that is not included in the assessed value of the real property must pay an annual tax. Inventory that is for sale as part of the business is not taxed. The tax is paid on form DR-405 to the county property appraiser.