Florida Business Groups Fighting Unemployment (UCT-6) Tax Increase

Unless Florida's Governor & Legislature act to prevent it, beginning in 2012, the Florida minimum unemployment tax will rise from a calculated $72 at companies with the best per employee rates to over $172 for the same employee. Companies with active job losses due to firings/layoffs can expect to see thier unemployment rate go from a current high of $378 per employee to an increase for 2012 of $459 for the same employee. The diffence between companies with the best rate of Unemployment tax and those with the worst rates is based on the company's employment history, ie. a company that hires and fires more regularily will have a higher rate than a company that has a history of not firing/laying off employees. Along with this rate increase the maximum payroll amount taxed will increase also from $7,000 per employee to a new $8,500 maximum.

Here is how the increase will occur:

The initial tax rate for new employers is .0270 (2.7%). Beginning January 1, 2012, the first $8,500 ($7,000 previous to 2012) in wages paid to each employee during a calendar year is taxable. Any amount over $8,500 for the year is excess wages and is not subject to tax. 

The Breakdown:
2012 Tax Rates (effective January 1, 2012)
Minimum rate: .0202 or $171.70 per employee
Maximum rate: .0540 or $459.00 per employee
(The 2012 rate is based on annual salary up to $8,500 per employee)

The OLD 2011 UC tax rates are currently:

2011 Tax Rates
Minimum rate: .0103 or $72.10 per employee
Maximum rate: .0540 or $378.00 per employee
(The 2011 rate is based on annual salary up to $7,000 per employee)