Unemployment Tax Hike Delayed For Two Years

March 3, 2010

Tuesday, the Florida Legislature unanimously  passed legislation that will provide a two-year delay in increased unemployment taxes.

The bill sponsored by Rep. Dave Murzin holds down dramatic increases in unemployment tax rates for businesses for the next two years and takes advantage of the time extension for the State Extended Benefits program by covering up to eight additional weeks for claimants. Approximately 20,000 Floridians would be eligible to receive extended benefits.

“Recharging Florida’s economy and putting Floridians back to work is our top priority this year. Making sure that employers can afford to keep the employees they already have is part of that agenda,” said House Speaker Larry Cretul. “It is better right now for Florida employers to use their dollars to keep Floridians working rather than be forced to lay off employees in order to afford a higher unemployment tax bill.”

“Affordable premiums are critical to Florida’s businesses during these tough economic times,: said Murzin, chair of the Economic & Community Affairs Council. “This bill is vital to help keep Floridians working and get our economy back on track. I appreciate Speaker Cretul’s confidence in asking me to spearhead this effort.”

The bill approved makes several changes, including:

  • Reduces the taxable wage base from $8,500 down to $7,000 for the next two years. This change will have the effect of reducing employers’ unemployment compensation taxes for 2010 and 2011. The rate will return to $8,500 in 2012, and sunsets back to $7,000 in 2015.
  • Regardless of the balance in the Unemployment Compensation Trust Fund, no rate increase will be triggered for the next two years. Rates will begin to rise again in 2012, but forecasts indicate our economy will be stronger and hopefully employers will have used the time to plan for the higher costs.
  • Grants employers the ability to make their 2010 and 2011 tax payments in quarterly installments without interest or penalties if the employers make the quarterly filings and payments on time.
  • The payment of interest on federal advances will be made through an employer assessment.
  • Provides an extension of the State Extended Benefits program which is 100% federally funded. This extension will cover up to 8 additional weeks for claimants. Approximately 20,000 Floridians would be eligible to receive extended benefits.

The bill was signed into law by Florida Gov. Charlie Crist Tuesday night.

Comments

One Response to “Unemployment Tax Hike Delayed For Two Years”

  1. anydaynow on March 3rd, 2010 5:04 pm

    Will Murzin even be in office when his bill takes affect, or is he dumping it on somebody else’s doorstep?

Written by William Reynolds · Filed Under News