Yesterday, Florida Governor Ron DeSantis signed into law HB 50, which among other things, drastically reduces the previously assigned 2021 Reemployment Tax Rate Notices for employers in the state. This is a huge win for all employers in the state of Florida regarding their reemployment tax for 2021. 

In December 2020, employers were outraged when they received their 2021 Tax Rate Notices because they had increased tremendously over the prior year. The reason for this was due to the depletion of the reemployment trust fund balance as a result of the unprecedented number of claims filed when the COVID virus struck. Since employers fund the trust fund balance every quarter by paying taxes, they were left with a huge deficit to overcome in the coming years.

In November 2020, the Florida House introduced HB 15 Taxation. This bill would uniquely funnel discretionary sales surtax to the reemployment trust fund, thereby taking some of the burden off of employers to replenish it. The Senate followed with SB 50, which was filed in December 2020. As part of both of these bills, the reemployment tax rate calculation was impacted. For the rate years 2021 and 2022, benefits paid as a result of the COVID 19 pandemic will not be charged to the employer, removing them from the calculation of the rates. Also, the rate will be calculated without the application of the positive adjustment factor, which is another component of the final rate.

It is expected the Florida Department of Revenue Reemployment Tax Section will post revised rates to its state portal within the next few weeks. This will be just under the wire for employers to file their Q1 2021 reemployment taxes due on April 30, 2021. Once the revised rates are received by CCC, the Tax Analyst assigned to your account will immediately verify the rate for accuracy and forward it to your designated contact. If you should have any questions regarding this revised tax rate notice or about the contents of this communication, please feel free to contact your CCC Tax Analyst.

Please contact your CCC Account Executive if you have any additional questions, comments, and concerns.


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