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Florida Reemployment (Unemployment) tax for single person S-Corp

Level 2

Reemployment tax is Florida's name for Unemployment tax.   Is it required to register for Florida Reemployment tax for the owner's / shareholder's w2 payroll on a single person S-Corp?   I know this is not required for sole-proprietors and general partners.    I have conflicting answers from the FL DOR.  

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Level 13

I paid attention to this part:

"General Liability Requirements
A business is liable for state reemployment tax if, in the current or preceding calendar year, the employer: (1) has paid at least $1,500 in wages (which includes paying $800 each to two workers) in a calendar quarter; or (2) has had at least one employee (does not need to be the same employee) for any portion of a day in 20 different weeks within the same calendar year; or (3) is liable for federal unemployment tax."

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3 Replies 3
Level 13

The FL reference materials clearly state everything you need to know:

https://floridarevenue.com/Forms_library/current/rt800002.pdf

Tutorial:

https://floridarevenue.com/taxes/tutorial/rt/story_html5.html

 

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"Level Up" is a gaming function, not a real life function.
Level 2

Thanks - I saw these regs, but couldn't find a situation on single person S-Corps.   Wages to 2% Officers are exempt or optional in some states from unemployment registration.    The FL regs say:

"Any officer of a corporation performing services for the corporation is considered an employee during their tenure of office, regardless of whether compensation is received. Compensation, other than dividends on shares of stock and board of director fees, is presumed to be payment for services performed."

Also, as exempt, not covered:

"Services by a sole proprietor, a partner, or a member of a limited liability company classified for federal income tax purposes as either a partnership or a sole proprietorship."

The FL DOR Rep told me on the phone that they see single person S-Corps as Sole Prop, no registration required according to the second quote.   I didn't agree, and called another rep and was told registration was required since the person is "Any Officer" (per the first quote above).   Given the FUTA credit, I'll just go ahead with the and register the client.

 

0 Cheers
Level 13

I paid attention to this part:

"General Liability Requirements
A business is liable for state reemployment tax if, in the current or preceding calendar year, the employer: (1) has paid at least $1,500 in wages (which includes paying $800 each to two workers) in a calendar quarter; or (2) has had at least one employee (does not need to be the same employee) for any portion of a day in 20 different weeks within the same calendar year; or (3) is liable for federal unemployment tax."

*******************************
"Level Up" is a gaming function, not a real life function.

View solution in original post