Unemployment Tax Relief is on the Way!

We have good news:  The legislature is right now working on legislation to relieve most Florida employers from the ridiculous tax increases next year.  The bill has already been heard in one committee in the House of Representatives and is scheduled for the Senate committee next week.  Legislative leaders have promised to have the bill to the Governor the first week in March, and Governor Crist has already pledged to sign it into law.  Here’s what the bill does:

• For 2 years, 2010 and 2011, it reduces back to $7,000 the amount of each employee’s wages subject to the tax.  (It was scheduled to be $8500 for 5 years starting in 2010.)
• For 2 years, 2010 and 2011, it eliminates the automatic tax increases triggered due to low balances in the Unemployment Compensation Trust Fund.
• It establishes a quarterly payment plan for 2010 and 2011 that lets employers spread out their unemployment compensation payments over the entire calendar year without being subject to penalties or interest.

Employers, especially those who had to lay off workers during the last year, will still see their taxes go up; however, with this bill the tax increase is intended to be much smaller.

Once the bill becomes law, the Department of Revenue will be mailing new tax notices.  You can ignore the tax notice you received from DOR in December – you will not be required to pay the rate indicated on that form.  You new, lower rate will be mailed to you in early March.

For updates, please watch the FUBA newsletter and continue to check the website.  If you have any questions, please feel free to call or email us at fubawc@fubaworkerscomp.com.

Published: 01/26/2010

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