Governor Ron DeSantis today announced more than 63 percent of Florida businesses will continue to pay the lowest possible rate for reemployment taxes in 2020. This is the fifth consecutive year employers have benefited from the low rate of 0.1 percent. Florida’s job growth rate continues to outpace the national average which has allowed the state to maintain the minimum reemployment tax rate for businesses. In 2012, employers paid more than $2.2 billion in taxes. Last year, businesses paid less than $514.2 million.
“The state of Florida remains competitive with other states because our businesses and communities are thriving,” said Governor DeSantis. “We remain committed to maintaining Florida’s business-friendly environment by lowering taxes, developing our workforce and making investments in education, infrastructure and the environment.”
“Governor DeSantis knows that creating a business-friendly environment is the key to supporting Florida’s booming economy,” said Florida Department of Economic Opportunity Executive Director Ken Lawson. “Maintaining a low-tax climate and investing in Florida’s infrastructure and workforce adds tremendous value to the state and continues to make Florida more marketable to businesses throughout the nation.”
“Last year Florida was awarded the United States Department of Labor Unemployment Insurance State Performance Excellence Award for Tax Operations overall for a large state,” said Florida Department of Revenue Executive Director Jim Zingale. “I’m proud of our employees for receiving this recognition.”
In addition, Zingale noted that the United States Department of Labor determined that Florida imposed the lowest average employer tax amount in the country the year of the award.
Employers only pay a percentage on the first $7,000 of wages paid to each employee. Employers with stable employment receive the lowest rate. Reemployment taxes, or payroll taxes, fund Florida’s Reemployment Assistance Trust Fund. As of June 30, 2019, this fund currently had a balance of more than $4 billion.
More information about the reemployment assistance tax rate can be found here.