Florida's SUTA RATES GO UP

[4beachn]

Florida?s SUTA rate dramatic rise in 2010

All Florida employers are going to have to pay a higher unemployment tax starting in 2010. The rate will be going from an already high of $8.40 all the way to $100.30. This tax, which most knew was coming is going to add more pressure to Florida employers who are already hurting by the recession. For some small businesses, a PEO will save them from having to let go of their employee's and large companies will save significantly with a PEO.

When you sign up with a PEO you are going to use their state unemployment rate and not your own. This is cheaper if you are just starting a business or have an existing high SUTA rate. If you go with a PEO you will pay a lower rate because it is based on their company and not your own. A PEO makes good business sense. Let LowRateWorkComp help with the high cost of doing business. We can customize the service to fit your needs. LowRateWorkComp

 

[Smiling JOe]

I talked about this in the Walmart coming to South Walton thread. Yes, Walmart will get hurt too, but not enough that they lay off their employees. However, the mom and pops in our area will suffer greatly, and eventually, we ALL will be getting our stuff from Walmart because it will be the only game in town.

 

[scooterbug44]

Question - isn't the reason the rates are going up that the unemployment coffers were completely drained and we had to get $$ from the federal government?

 

[beachmouse]

It's my understanding that the state held the tax at below necessary replacement rate for years and got away with it because of a long run of low unemployment rates statewide. And now they've been burned because they weren't taking in enough during the boom years to capitalize the pot properly.

 

[Smiling JOe]

It's my understanding that the state held the tax at below necessary replacement rate for years and got away with it because of a long run of low unemployment rates statewide. And now they've been burned because they weren't taking in enough during the boom years to capitalize the pot properly.

Since this might cause many of the very small businesses to lay off an additional employee, which might mean that it will now just be Mom and Pop working in the store, they might need to increase it more, to pay for more layoffs. It seems @ss-backwards to me. If the govt would lift the burden of taxes on businesses, businesses could hire more people, and not have to pay higher unemployment, and these people who are working could buy things, churning that wheel.

 

[beachFool]

Suta

Question - isn't the reason the rates are going up that the unemployment coffers were completely drained and we had to get $$ from the federal government?

There are many reasons but:

The 2009 stimulus bill had $444 million specifically aimed at FL unemployment, however, the state legislature refused to accept it.

Currently we are borrowing funds from the federal government to pay unemployment benefits.