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Volusia Manufacturers Association supports Florida’s Unemployment Tax Relief Compensation Bill
On February 26, 2010, the Florida Legislature advanced legislation to relieve Florida employers of the exorbitant unemployment tax rate bills they are currently facing. The Senate Ways & Means Committee unanimously passed Senate Bill (SB) 1666, and a few minutes later the House Finance & Tax Council unanimously passed the companion measure House Bill (HB) 7033, otherwise known as the Unemployment Compensation Bill.
Both HB 7033 and SB 1666 bills address the tax amounts employers must pay this year in the following ways:
- Reduces the taxable wage base for each employee from $8,500 back down to $7,000 for 2010 and 2011.
- Establishes a quarterly payment plan for 2010 and 2011 that allows employers to spread out their unemployment compensation payments over the whole year without application of penalties or interest.
- Regardless of the balance in the Unemployment Compensation Trust Fund, there will be no rate increase for the next two years as the positive adjustment factor will be suspended. A three-year recoupment period would begin in 2012, followed by a four-year recovery period that would start in 2015.
- Allows unemployed Floridians to receive additional extended unemployment benefits funded 100% by the federal government. This extension would cover up to 8 additional weeks of benefits.
As one can see, passing of HB 7033 and SB 1666 would truly help Florida businesses by allowing a two-year delay in the tax hike. This tax relief comes at a time when all industries in Volusia and Flagler counties are struggling just to make ends meet or just to make the payroll. Only two Volusia-county industries showed growth in 2009 per the State of Florida’s Agency for Workforce Innovation, those being State government and Leisure and Hospitality. Manufacturing and Professional & Business Services led the industries in job losses for Volusia County in 2009 at 7.9% and 7.8% losses, respectively. So, unfortunately, the large hike in unemployment taxes would harm these manufacturers and businesses even more- maybe causing more layoffs or even causing them to have to close down operations.
Via EPR Network
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