More Florida Unemployment Tax Insanity #5

Filed in Florida, Tax, Savings by on February 5, 2011

I was wrong about there being no more Florida unemployment tax insanity.

Last year, on the day they first met, Florida legislators seemed to send an urgent signal that there would be no more Florida unemployment tax insanity. They passed, and our governor signed, a law stopping Florida unemployment tax increases of up to 1200%. Instead, they staged increases to give our economy more time to recover. This will let employers with low rates (due to low claims) pay less, while employers with many claims will pay more.

Now, however, we have more Florida unemployment tax insanity. Florida partly covered its unemployment tax fund deficit by borrowing money. The interest on this loan should have come from general operating income or a slight increase in unemployment tax rates. Instead, we now have more Florida unemployment tax insanity. Florida issued separate bills for each company’s share of the interest. This means separate bills, for between $1 and $100, for each of my clients. If they do not pay them promptly, they will face penalties of up to $25 A MONTH. Of course, everyone will have to pay. Some also will have to pay my accounting fee for reviewing more Florida unemployment tax insanity.

I hope sending this to all business payroll clients makes many not send me these bills, before paying them. They are not due to anything that you or I did wrong. They are simply more Florida unemployment tax insanity.

 

 

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