Today, Florida Legislators unanimously passed HB 7033 which provides Florida employers with immediate relief from unprecedented unemployment compensation tax increases that they were facing this year.
Without this important legislation, most Florida employers would be forced to pay unemployment taxes at levels higher than 1200% over last year’s amounts. Plus, the full payments would have been due April 1, 2010.
Specifically, HB 7033 makes the following key changes to the 2010 tax requirements:
- Reduces the amount of each employee’s wages upon which the employer pays the UC tax – from $8,500 back down to $7,000 for 2010 and 2011.
- Establishes a quarterly payment plan for 2010 and 2011 that lets employers spread out their unemployment compensation payments over the whole year without normal application of penalties or interest.
- Eliminates all elements of the rate calculations in the current law that would otherwise increase the tax for purposes of replenishing the Unemployment Compensation Trust Fund balance for 2010 and 2011.
- Allows unemployed Floridians to receive additional extended unemployment benefits funded by the federal government.
FHCA worked with Associated Industries of Florida, the Florida Chamber and other business groups who made a top priority to have the measure pass on the first day of session.