2010 Unemployment Tax Relief
Florida Governor Charlie Crist (R) signed into law HB 7033, unemployment tax relief for all Florida employers that were previously issued 2010 tax rates.
The new law, passed March 2, 2010 and retroactive to January 1, 2010, delays the changes in the SUI tax rate calculation until 2012; reduces the taxable wage base and provides for quarterly installment payments. As a result, the 2010 taxable wage base of $8,500 reverts back to $7,000 in an estimated tax savings of $81.00 per employee for maximum-rated employers at 5.4%.
- Adjusts tax rate calculations through 2011.
Minimum rate: 0.0036 or $25.20* per employee
Maximum rate: 0.0540 or $378 per employee
*The minimum rate is an approximate figure until the rates have been recalculated
- Reduces the taxable wage base from $8,500 to $7,000 until 2012.
- Provides for quarterly installment payments for an annual administrative fee of not more than $5.00 without interest or penalty.
The tax relief will apply to taxes due by April 30, 2010. The Florida Department of Revenue must recalculate the 2010 unemployment tax rates and reissue notices to employers. It is anticipated the revised notices will be sent to employers in late March or early April.
Businesses generally owe the majority of SUI taxes in the first half of the year. Employers should review their cash flow options for taking advantage of the quarterly installment payment options.
