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Legislature rolls back unemployment compensation tax
¦ First priority of session is recharging the state’s economy and putting Floridians back to work
Florida lawmakers promptly passed legislation last week that will help keep Floridians working, prevent layoffs, bring a degree of economic certainty to help create new jobs and foster economic growth in Florida. Council Substitute for House Bill (CS/HB) 7033, sponsored by Rep. Dave Murzin (R-Pensacola), 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. Gulf Breeze Area Chamber of Commerce President and CEO Meg Peltier praised lawmakers’ actions. “If small businesses are going to survive, we need our legislators to develop incentives to encourage the hiring of new employees,” Peltier told Gulf Breeze News. “Rep. Murzin literally has thrown a life preserver to small businesses drowning in this economy. “Unfortunately, the relief is only for a couple of years. I hope small businesses will take advantage of this time, learn how to swim and be prepared for the increases that will come later on down the road.” House Speaker Larry Cretul said recharging Florida’s economy and putting Floridians back to work is the legislature’s top priority in 2010. “Making sure that employers can afford to keep the employees they already have is part of that agenda,” Cretul said. “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.” Murzin is Chair of the Economic and Community Affairs Council. “Affordable premiums are critical to Florida’s businesses during these tough economic times,” Murzin said. “This bill is vital to help keep Floridians working and get our economy back on track.” CS/HB 7033 makes several changes to the existing law 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 percent federally funded. This extension will cover up to eight additional weeks for claimants. Approximately 20,000 Floridians would be eligible to receive extended benefits. Gov. Charlie Crist signed the legislation into law immediately as promised. |
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