Unemployment Tax Increasing for Businesses
The state released the latest jobless figures today. Florida is at 11.2 percent unemployment. This figure is up 1/10th of one percent from last month. Next year the minimum unemployment tax will skyrocket from eight dollars to 100 dollars, because the state has run out of money to pay claims and is now borrowing 300 million dollars a month.
The tax is being increased to help pay unemployment claims. The fund ran out of money in August. Now the state is borrowing money from the feds and asking Florida businesses to foot the bill. Rick McAllister of Florida Retail Federation says now is not the time. “Let’s not hammer small business and medium size businesses, who are just now starting to feel like things are getting better, with a two billion dollar bill” said McAllister.
Help for the unemployed may be needed longer than initially expected. According to economists the unemployment rate is expected to remain above six percent through the 2019. This will leave state lawmakers looking for money to fix the problem.
Retailers are asking the governor and lawmakers to look at the issue in a special session because the first payment of the new unemployment tax will be due in March. Retailers are also hoping a vote on decreasing the tax increase can be taken in December or January which is when a special session for high-speed rail is rumored to be held.
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