Florida Reemployment Tax Rate to Remain at its Lowest in 2018 for Third Year in a Row
On December 14, Gov. Rick Scott announced that Florida businesses will continue to pay the lowest possible rate for reemployment taxes next year for the third year in a row. The minimum tax rate will remain at $7.00 per employee in 2018. As a result of Florida’s thriving economy, more than 60 percent of Florida’s employers will pay the minimum tax rate, which is the highest number of employers at the lowest reemployment tax rate since 2004. The $7.00 per employee minimum tax rate for 2018 is down from a high of $120.80 per employee in 2012. Since 2012, Florida businesses have had their reemployment tax reduced by more than 94 percent, resulting in a savings of more than $4.9 billion.
Gov. Scott said, “By keeping the reemployment tax low, we are putting more money back into the hands of job creators so they can invest in their businesses. This continued low rate is another example of the steps we are taking to make Florida number one in the nation for job growth and opportunities.”
Florida businesses pay the reemployment tax as a percentage of the first $7,000 in wages for each employee. Reemployment taxes, or taxes on payroll, fund Florida’s Reemployment Assistance Trust Fund. Florida’s strong economy and private-sector job growth has allowed the state to dramatically reduce the minimum reemployment tax rate. As a result, this year’s trust fund is robust and the reemployment tax rate will remain low for 2018.
Department of Economic Opportunity Executive Director Cissy Proctor said, “Businesses are confident in Florida’s economic climate and continue to create jobs for hardworking citizens. Our strong trust fund allows for a lower tax rate for a majority of businesses. This allows businesses to reinvest these savings. Florida remains the best state in the nation to live, work and do business.”
More information about the Reemployment Assistance tax rate can be found here.