Small Business Payroll in Brevard County: A Plain-English Guide

Hiring your first employee is a milestone for any small business in Brevard County. It's also when your bookkeeping and tax responsibilities grow the most. This guide explains small business payroll in plain English for owners in Melbourne, Palm Bay, Viera, and across the Space Coast.

What do I need before running payroll in Florida?

Before you pay your first employee, have these in place:

• An EIN from the IRS
• Florida reemployment tax registration with the Florida Department of Revenue (Florida's version of state unemployment tax)
• Form W-4 completed by each employee for federal withholding
• Form I-9 to verify each employee's eligibility to work in the U.S.
• Florida new hire reporting, which employers must complete for new employees
• Workers' compensation coverage, if required for your industry and number of employees

Florida has no state income tax, so you won't withhold state income tax from paychecks. That makes Florida payroll simpler than many states, but federal requirements still apply.

What payroll taxes does a small business pay?

Payroll involves two kinds of taxes:

Taxes withheld from employee pay

• Federal income tax
• The employee share of Social Security and Medicare

Taxes the employer pays

• The employer share of Social Security and Medicare
• Federal unemployment tax (FUTA)
• Florida reemployment tax

Withheld taxes are held in trust for the government. Falling behind on depositing them is one of the most serious tax problems a business can face, so it's worth getting this right.

Should I hire an employee or an independent contractor?

This is one of the most common questions we hear from Brevard County business owners, especially in construction, home services, and tech contracting around the Space Coast.

The answer depends on the working relationship, not what you call the person. Generally, the more you control how, when, and where the work is done, the more likely the worker is an employee. Misclassifying employees as contractors can lead to back taxes and penalties.

If you do use contractors, collect a Form W-9 before paying them and track payments so you can issue required 1099 forms at year-end.

How should I run payroll: DIY, software, or a professional?

• DIY by hand: Not recommended. Calculation and deposit errors are easy to make.
• Payroll software: Handles calculations, filings, and direct deposit. Works well if your books are organized.
• Accountant-managed payroll: Best if you want payroll tied directly into your bookkeeping and tax planning, with someone watching deadlines for you.

What are common payroll mistakes to avoid?

• Missing tax deposit deadlines
• Misclassifying workers
• Forgetting to register for Florida reemployment tax
• Not recording payroll correctly in your books
• Paying owners of an S corporation without proper payroll, or with no reasonable salary

For S corporation owners, payroll is closely tied to tax savings. Learn more in our guide to choosing a business entity.

Frequently asked questions

Does Florida have state payroll income tax?

No. Florida doesn't have a state personal income tax, but employers still handle federal withholding and Florida reemployment tax.

How often do I need to run payroll?

You choose the schedule, such as weekly, every two weeks, or twice a month. Consistency matters most.

Can my bookkeeper handle payroll?

Often, yes. Combining payroll with monthly bookkeeping keeps your records consistent. See bookkeeping services in Brevard County.

Get payroll help on the Space Coast

Naulty & Co. helps small businesses in Melbourne, Palm Bay, and throughout Brevard County set up payroll, stay compliant, and keep their books in order. Contact Naulty & Co. to talk through your hiring plans.

This article is general information, not tax or legal advice. Consult a qualified professional about your specific situation.