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Florida Min. Wage Jumps to $14 on Sept 30: Payroll Budgeting Tips

A concerned restaurant worker in an apron reads a document while touching her temple, standing behind a counter in a cozy brick-walled café.
Written by
Elbert Silva
Updated on
July 24, 2025

Florida’s one‑dollar‑a‑year climb toward a $15 minimum wage reaches its second‑to‑last step this fall. On September 30 2025, every non‑tipped worker in the state must earn at least $14 per hour. Tipped employees move to a $10.98 cash wage plus tips. If you run a small business in South Florida, the change is only weeks away. Payroll budgets, menu prices, and cash‑flow forecasts need attention right now.

This guide shows exactly how to absorb the extra dollar without wrecking margins. It is written for owners who cut the checks themselves or review payroll reports from a bookkeeper.

Quick facts you need first

  • Current rate: $13.00 per hour (non‑tipped) and $9.98 (cash wage for tipped) until September 29 2025
  • New rate: $14.00 and $10.98 starting September 30 2025
  • Annual increases: $1 every September 30 through 2026, when the rate reaches $15.00
  • Federal rate: $7.25 and unchanged since 2009. Florida law overrides it
  • Poster rule: You must display the updated 2025 minimum‑wage poster where workers can see it
  • Payroll lead time: Most cloud payroll systems need two weeks’ notice to update pay templates and auto‑runs

Why Florida wages keep climbing

Voters approved Amendment 2 in November 2020 with 61 percent support. The measure locked the one‑dollar raise into the state constitution. The wage reached $10 in 2021, then $11, $12, $13, and now $14. One final step to $15 arrives on September 30 2026. Because the rule sits in the constitution, lawmakers can’t pause or reverse it without another amendment.

What an extra dollar really costs

A dollar an hour sounds small until you multiply it by taxes, overtime, and benefits. Below is a realistic, all‑in cost breakdown for a full‑time hourly employee.

Cost breakdown per full‑time employee

  • Straight wage – 1.00 × 40 hrs × 52 wks → $2,080
  • Employer FICA – 7.65 % × 2,080 → $159
  • Florida Re‑employment tax* – 2.7 % × first $7,000 → $19
  • Workers’ comp (avg.) – 1.2 % × 2,080 → $25
  • Paid time off (if accrued) – 1.00 × PTO hrs → varies

New businesses start at 2.7 percent. Mature firms may pay less.

Ballpark total: about $2,300 per full‑time employee per year. For a ten‑person shop the yearly impact runs roughly $23,000. Plug in your actual tax rates and scheduled hours for a sharper figure.

Step‑by‑step budgeting strategy

  1. Pull a pay‑rate report for every hourly worker. Filter for anyone under $15.
  2. Forecast hours through Q4 2025, including overtime, seasonal hires, and PTO payouts.
  3. Apply the cost breakdown above to estimate the all‑in bump.
  4. Update your cash‑flow forecast for October–December; hurricane season can shrink revenue without warning.
  5. Model price adjustments – extra payroll ÷ projected units = price increase required.
  6. Communicate early with staff; proactive raises build goodwill and limit turnover.
  7. Schedule pay‑rate changes in your payroll system at least two cycles before Sept 30.
  8. Review tipped‑employee averages to confirm each worker still meets the $14 threshold when tips are added.

Seven cost levers that avoid layoffs

  • Tighten task assignments with tech (e.g., POS time‑punch locks)
  • Shift to six‑hour off‑peak shifts
  • Cross‑train staff to cover multiple tasks
  • Automate low‑value admin (hours → QuickBooks sync, etc.)
  • Audit scheduled overtime – the new OT rate rises to $22.50
  • Negotiate longer supplier payment terms
  • Claim credits like the Work Opportunity Tax Credit

Special rules for tipped, youth, and salaried workers

Tipped staff

  • Cash wage: $10.98
  • Tip credit: $3.02 (difference between $14 and $10.98)
  • You must “top up” any pay period where wages + tips < $14

Youth wage

Florida permits a $4.25 training wage for the first 90 calendar days for workers under 20. Day 91 → full state rate.

Salary thresholds

Any salaried employee earning $35,568 or less must still receive overtime. Raising hourly staff to $14 may narrow the wage gap between non‑exempt and exempt workers. Review salary positions under $40k to keep morale balanced.

Local nuances in South Florida

  • Miami‑Dade surtax: a 1 percent discretionary sales surtax can squeeze margins; revisit pricing.
  • Commuter stipends: rising tolls on SR‑836 and I‑95 add hidden labor costs.
  • Hurricane closures: the wage hike lands in peak storm season; hold one payroll cycle in reserve.

Timeline of future changes

  • Sept 30 2025
    • Full minimum wage: $14.00
    • Cash wage (tipped): $10.98
    • Action: Automate new rates in payroll
  • Jan 1 2026*
    • Full minimum wage: Inflation adjustment (if any)
    • Cash wage (tipped): Adjust tipped differential
    • Action: Watch CPI release
  • Sept 30 2026
    • Full minimum wage: $15.00
    • Cash wage (tipped): $11.98
    • Action: Plan now for the final $1 jump

Florida adds CPI bumps each January after wages hit $15.

Tools that make recalculations painless

  • Florida DEO minimum‑wage poster (free PDF)
  • QuickBooks Payroll “What‑If” calculator
  • Square Labor Cost Report
  • IRS Tax Withholding Estimator
  • Excel break‑even template
  • Hurricane cost tracker spreadsheet
  • One‑page SOP from your bookkeeper

Frequently asked questions

  1. Do salaried managers get a mandatory raise? No – the amendment targets hourly pay only.
  2. Can bonuses count toward $14? Only if non‑discretionary and frequent enough to raise the average hourly rate every week.
  3. What if I operate in multiple states? The higher state or federal rate applies in each location.
  4. Do credit‑card tips count? Yes – treated the same as cash tips if paid out by the next payday.
  5. Are piece‑rate cleaners covered? Yes – their piece rate must average ≥ $14/hour each pay period.
  6. How are automatic service‑charge tips treated? If the business keeps them, they don’t count toward the $14 threshold.

Key takeaways for owners

  • Budget about $2,300 per full‑timer per year for the wage bump.
  • Update pay rates in August so the Sept 30 payroll runs smoothly.
  • Use pricing tweaks, efficiency gains, and tax credits before cutting staff.
  • South‑Florida quirks (surtaxes, tolls, storms) demand bigger cash buffers.
  • The $15 target is only 14 months away – plan both increases now.

Final word

Florida’s staggered wage hike is predictable. Owners who adjust early turn a legal requirement into a win: higher morale, lower turnover, smoother scheduling. If you need help crunching the numbers or rewriting cost codes, our bookkeeping team can walk through your books line by line.

Pay people right, protect your margins, and keep building the business South Florida relies on.