Unemployment Tax Increases

By: Whitney Ray Email
By: Whitney Ray Email

Tallahassee, FL - Every business in Florida is about to see a tax increase. The increase is needed to repay the 115 million dollars a month the state is borrowing to pay unemployment claims. So far the state has borrowed almost two billion dollars.

Payments on the loan aren’t due until September, but by then the state will owe 61 million dollars in interest alone.

To pay the money back Florida’s minimum unemployment tax rose from 25 dollars an employee to 72 this year.

Next year it will skyrocket to nearly 200 dollars. The Florida Chamber of Commerce calls the increase a jobs killer.

“Hopefully, from our prospective, we can work with the legislature to find a way to alleviate the impact of the tax increase and spread it out over time so businesses can continue to try and hire workers,” said Adam Babington, a spokesman with the Chamber.

Governor Rick Scott is looking for a way to ease the burden on businesses.

“We have to really look at it carefully and see how much of an impact it will have on job creation. My whole campaign was how do we get the state back to work? So it’s something I’m going to look at to see how can we keep it as low as we can,” said Scott.

The House Economic Affairs Committee is reviewing ways to slow the borrowing. They want to know if people are taking advantage of the system.

“We are all in this together. Pointing fingers at each other is not the solution. We need to come to something that’s equitable for everyone,” said Committee Chair Dorothy Hukill.

The committee is reviewing unemployment records to see if anyone is turning down jobs because they want to keep their unemployment pay. But with Florida’s unemployment benefits among the lowest in the nation; even a minimum wage job would bring in more money.

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  • by Anonymous on Jan 19, 2011 at 06:31 AM
    Then how does firing people lead to more people recieving unemployment?
  • by Just stop firing people. on Jan 19, 2011 at 05:31 AM
    GV, Exactly.
  • by GV Location: Ga on Jan 18, 2011 at 07:26 AM
    Just stop firing people,when you fire someone,they don't get unemployment.
  • by Just stop firing people on Jan 18, 2011 at 06:10 AM
    GV, That is there former employer's responsibility not mine. A responsibility the willingly took on when the chose to open a business and hire those people.
  • by GV Location: Ga on Jan 18, 2011 at 04:55 AM
    Just stop firing people,how did the employees create this problem?Employers can't keep their employees if they aren't making money.How are they suppossed to keep paying the payroll?You think employers are suppossed to pay out of their own pocket?According to your posts that i've read,you think "yes",so why don't you find a few people who are unemployed and start paying their salaries.
  • by Just stop firing people on Jan 17, 2011 at 05:09 PM
    Good. The employers are the ones creating this massive unemployment problem. They need to stop firing people. I glad they are going to have to pay hire taxes. Maybe it will make them stop and think the next time they want to do mass layoffs. This is just the right incinative employers need to keep employees employed. What is killing jobs, is low unemployment taxes and low employer accountability for the massive unemployment problems they are causing.
  • by GV Location: Ga on Jan 17, 2011 at 08:03 AM
    Business Owner,it isn't suppossed to pay if you quit,but after this current admin has let people get unemployment for up to three years,and a president who has told people to not worry about looking for a job because the gov't will take care of them,they will give it to just about anybody.And btw,if he quit you and started working for another job,then that company folds,then he did not quit his employment and he should qualify.
  • by still laughing Location: if the shoe fits... on Jan 17, 2011 at 05:10 AM
    SORRY NEIGHBORS...LOL...it appears you stepped on some toes.
  • by Business Owner Location: Gadsden on Jan 16, 2011 at 08:27 PM
    "Posted by: Anonymous on Jan 15, 2011 at 10:04 PM Business Owner, Unemployment doesn't pay when you quit your job. " Well I can say you are dead wrong. I have an employee that quit 1.5 years ago and his unemployment is being charged against my account right now. We asked our CPA about it and he said that every employer this guy had is being charged for his unemployment. I even called them and told them he quit and that I really needed him back. He quit for a job making 5k more a year and that company folded a month later. His loss for being greedy. He is now working under the table for one of my competitors and they do not seem to care. As for the idiot that said he would rather collect unemployment than work for me must not like making 70k a year for a fun job.
  • by russell Location: moses lake wa on Jan 15, 2011 at 11:13 PM
    Im sure "Business Owner" wants UI bene. to end so that him and his kind would have a larger pool of desperate people begging for his min wage job. "united we bargain divided we beg"
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