Florida Businesses May Get Coal in the form of Increased Unemployment Compensation Rates
By Kari Hebrank , Carlton Fields
a company who lose their jobs and go on to claim benefits , the more the company has to pay for insurance . By raising the minimum rate , it seems the businesses that took extraordinary measures to retain as many employees as possible get an unfair deal .
As the holiday season winds down and the new year commences , many Florida businesses will get “ coal ” in the form their unemployment insurance bills triple , based on the Florida Department of Revenue ’ s newly announced rate increases . Presently , unemployment insurance premiums start at $ 7 , or 0.1 % of the first $ 7,000 paid to each employee , capping at $ 378 , or 5.4 % of the same $ 7,000 wage base . But pandemicrelated unemployment claims have depleted the state ’ s unemployment trust fund , and businesses are going to have to foot the bill . The new minimum is 0.29 % — or about $ 20.30 per employee — but the maximum premium remains the same .
The increase is largely due to the number of businesses that closed due to the pandemic . The employees that lost their jobs because their employers closed shop can collect unemployment benefits ; however , the former employers aren ’ t around to feed unemployment compensation premiums back into the depleted state trust fund . The trust fund has run through about half of the 4 % wage base it had on hand at the beginning of the year .
The employees that they let go can collect unemployment benefits , but former employers aren ’ t around to pay premiums back into the dwindling state trust fund , which has run through about half the 4 % wage base it had on hand at the beginning of the year . The only good news is that the increase isn ’ t as steep as it was during the previous recession .
Each business ’ unemployment premium is calculated based on its size and how often it lays off employees — the more workers at
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