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Unemployment Comp. Tax Affects Your Bottom Line

Unemployment Comp. Tax Affects Your Bottom Line

By: ddaniel OffLine

On: 12/4/2009 3:52 PM

Posted To: OneVoice

Florida employers will face significant increases in their unemployment compensation taxes at a time when they can least afford it. The new unemployment compensation tax rates have been calculated by the Department of Revenue and will become effective January 1, 2010.
 
What This Means to Your Business:
 
The rate that an employer pays in state unemployment compensation taxes is specific to the business and is based on a formula that also considers an employer’s three year experience. In 2009, employers at the minimum rate paid $8.40 per employee. This will increase to $100.30 per employee starting January 1, 2010. The new rate will bring in $2.5 billion in unemployment compensation taxes for FY 10-11 and represents a $759 million tax increase on Florida employers.
 
For example, a 50 employee business with the minimum experience rating paid $420 in state unemployment compensation taxes in 2009 and will now have to pay $5015 in 2010, representing a 1094 percent increase in their unemployment compensation taxes.
 
 
Have I Got Your Attention Now?
 
Where is the money coming from? It’s simple, your bottom line.
 
  
Five Ways You Can Make a Difference:
 
1. Tell us how this increase will impact your business - add a comment to this post and let us know how this increase will impact your business and allowing us to share your story with Florida’s legislative leaders helps our united effort to reduce this tax increase in 2010.
   
2.  Contact your State Representative and State Senator and ask them to take action now!
  • Tell them how this unemployment compensation tax increase will impact your business.
  •  Ask them to reduce the tax increase and lower the wage base in a special session.
  •  If you don’t know who your state legislators are, please contact Faye Brainard at fbrainard@flchamber.com to get this information.
 
3.   Email Governor Crist:  Tell your story and ask him to call a special session to reduce the tax increase and lower the wage base.
 
4.   Write a letter to the editor in your local paper about the impact of this tax increase on your business.
 
5.  Get 10 other employers in your area to join the fight by telling us how this tax increase will impact their business.
 

Tags: compensation, economy, increase, tax, unemployment

7 Comments

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Comments:

jocelynholt said:

Florida legislators MUST do something to protect small businesses in Florida from the insane unemployment tax increase.  I own a small business and understand first hand why the state is having issues with unemployment.  We are losing unemployment claims to employees who have QUIT or were terminated with cause.  For example, I have been charged for 3 quarters for an employee who resigned with a 2 weeks notice and a resignation letter.  She decided she wanted to go back to school and work with children instead of seniors.  She couldn't find a job in that field so she applied for unemployment and has been receiving it.  Where is the justice here???  I not only lost an employee, had to spend funds to replace her, now I am paying unemployment because she couldn't find a job in the field she wanted.  I have appealed this three times (with her resigantion letter) yet I am still paying unemployment on her.  Another example, we terminated an employee who had been on probation 2 different times for excessive tardiness (more than 80 times) yet still didn't correct her behavior.  She appealed the decision.  We had a unemployment hearing and she admitted that she is always tardy, had been warned and put on probation, and understands that being on time is required for the job yet she still won the unemployment.  WHY??  I don't know.  This type of nonsense is only teaching workers that anyone can get unemployment even if they quit.  This is a major issue facing small business owners.  Legislators- do something to protect small businesses.  We are what this country was built on.
1/20/2010 4:06 PM

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flajones said:

We run a small, successful restaurant in Walton County.  We do not lay people off.  We pay the lowest rate available.  An increase of 1200% is obscene. 

What people need to be aware of is this:

The lowest rate, that is the rate on the best employers, those of us that are not laying off people, has been increased by 1200%.

The highest rate, that is the rate on the worst employers, those, who in many cases lay people off frequently, DID NOT CHANGE, beyond the increase in the wage base.

How does this make sense?  Successful businesses, who do not burden the state with laid off workers are paying for the workers of seasonal and failing businesses.

Gary Hunt
Emerald Coast Restaurant Associates
Walton County
1/6/2010 5:45 PM

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flkemp said:

 
12/24/2009 4:12 PM

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mcuz01 said:

 
12/18/2009 1:41 PM

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mcuz01 said:

 
12/18/2009 11:05 AM

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rgdivin said:

I own a small buisness in Gulf Breeze that employes 11 full time and 7 part time. The down economy and resultant consumer pull back has taken profitability to zero (previously nicely profitable). The increase in unemployment taxes represented in your article will certainly force me to lay off employees and possibly shut down. I was intending to invest in expantion hoping to catch the full impacts of what I hope to be a soon to come economic upswing. This expansion would generate at least an additional 9 full time employment opportunities. If the unemployment tax increases occure as outlined in your article I will not invest in this expantion.


Ron and Pam Divin
Gulf Breeze, FL
12/17/2009 3:17 PM

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Cotleur said:

We have felt, as have many other businesses, the impact of the current economic instability. To say the least, we have had to lay-off a number of employees, significantly reduce employee hours and discontinue retirement plan contributions to continue to survive these times. We vote STRONGLY AGAINST the increase in unemployment taxes as this will only cause businesses to consider more employee lay-offs and send more people to claim unemployment. Vote NO.
12/15/2009 8:49 AM

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