Unemployment Taxes for Florida Businesses Drop January 1
- Published in Business News
TALLAHASSEE - Florida businesses will start paying lower reemployment taxes in January, due to the higher number of employed Floridians this year. The minimum tax rate will be cut more than 50 percent from the current rate of $16.80 per employee to $7.00 per employee in 2016.
Governor Scott said, “As more Floridians are finding the job opportunities they need to succeed and provide for their families, the cost of doing business in Florida keeps dropping. This dramatic reduction in taxes will be especially helpful for Florida’s small businesses, and is one more reason that companies are choosing Florida as the best place to grow. We will continue to create a business-friendly environment to help diversify our economy so Florida can become first for jobs.”
The $7.00 per employee minimum tax rate for 2016 is down from a high of $120.80 per employee in 2012. In just four years, Florida businesses have had their reemployment tax reduced by more than 94 percent. Florida businesses pay the reemployment tax as a percentage of the first $7,000 in wages for each employee. In October, Florida’s unemployment rate dropped to 5.1 percent, less than half the December 2010 rate and the lowest rate in seven years.
Department of Economic Opportunity Executive Director Jesse Panuccio said, “Nearly 1 million new jobs have been added since Gov. Scott took office. As a result, over the last four years, we have been able to sharply reduce payroll taxes that Florida businesses pay. It’s a positive cycle: as we lower taxes, the economy grows and people get employed, resulting in even lower taxes.”
More information about the Reemployment Assistance tax rate can be found here.