See What This Means for Your Bottom Line

The Department of Revenue has released the Reemployment Tax Rate (formally known as unemployment tax) for employers beginning January 1, 2021.  The minimum rate will increase from 0.10 percent to 0.29 percent due to socialized costs, such as the non-charge ratio and a fund size adjustment ratio to replenish the trust fund.  The maximum rate, set in statute, remains at 5.4 percent.  The taxable wage base remains at $7,000 for the year 2021.


What this Means

Employers that are at the minimum rate for unemployment will see a tax increase of $13.30 per employee and will now pay $20.30 per employee in 2021 compared to $7 an employee in 2020.  Minimum rate employers are employers that have not had any layoffs in the prior 3 years.  Other employers with variable rates will also see increases in 2021 unless they are at the maximum rate of 5.4 percent.  This marks an almost 200 percent increase in unemployment costs for Florida job creators.  As a comparison, in 2009 during the Great Recession, the minimum unemployment tax rate increased from 0.12 percent to 1.18 percent, or an increase from $8.40 an employee to $100.30 per employee.

The Florida Department of Revenue will be mailing out individual notices to employers in the month of December.

At the direction of the Florida Chamber of Commerce Policy Council, we have formed a working group on this issue. If you or your Tax Counsel/HR Director is interested in joining, please contact me at cjohnson@flchamber.com.