On the opening day of the 2010 Regular Session of the Florida Legislature, the Florida House and Senate each passed HB 7033, a bill that is expected to provide relief to Florida businesses otherwise facing a dramatic increase in their unemployment compensation (UC) taxes for 2010 and 2011.
The Florida Restaurant & Lodging Association (FRLA) was an early and vocal advocate in the Florida Legislature for quick passage of the bill.
According to the FRLA, if a business is paying UC tax at the minimum rate, tax was due to jump from $8.40 per employee to up to $100.30 per employee in 2010 and $164.05 per employee in 2011. Under the bill passed March 2, UC tax should instead be approximately $25.20 per employee in 2010 and $53.90 per employee in 2011.
If a business was paying UC tax at the maximum rate, the tax was due to jump from the $378 per employee up to $459 per employee in 2010 and 2011. Under the new bill, UC tax should instead remain at approximately $378 per employee in 2010 and 2011.
The bill also will allow employers to make their 2010 and 2011 UC tax payments in quarterly installments without interest or penalties as long as the employer makes the filings and payments on time and pays an annual $5 administrative fee.
