UNEMPLOYMENT TAX RELIEF PACKAGE CLEARS COMMITTEES

Today 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 SB 1666, and a few minutes later the House Finance & Tax Council unanimously passed the companion measure HB 7033.  Both bills address the tax amounts employers must pay this year in the following ways:

• 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. 
• Eliminate all elements of the rate calculations in current law that 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.

These bills will now move to the floors of their respective chambers for final passage.  AIF anticipates the Legislature will pass this important measure on March 2nd - the opening day of the 2010 Legislative Session.

AIF salutes Senate President Jeff Atwater and House Speaker Larry Cretul for their steadfast commitment to helping Florida’s economy by allowing our state’s unemployment tax system to be manageable and predictable in these critical times of economic recovery.  This measure will free up critical capital that many companies will use for expanding their workforce and creating more jobs in this state.

Please contact your state legislators in the next few days and thank them for their support of this legislation that is vital to Florida’s economic recovery and future success.