The reemployment assistance program is a federal-state partnership.
Each state determines benefit qualification levels and amounts,
benefit duration, disqualifications, and tax structure, within federal
For example, federal guidelines require each state to:
- Base its tax structure on benefit experience
Have a new employer tax rate of at least 1.0%
- Have a maximum tax rate of at least 5.4%
- Have a taxable wage base of at least $7,000
Each state sets tax rates, benefit levels, and trust fund balances
based on that state's needs. Each state has its own benefit trust fund
account within the U.S. Treasury. In Florida, the account is funded by
a tax paid by employers.
Florida assigns new employers an initial tax rate of 2.7%. This rate
stays in effect for the first 10 quarters. At the end of this period,
an employer has enough history to qualify for an experience-based tax
rate. The formula for calculating the rate combines three major
The individual benefit ratio makes up the greatest portion of the
employer's final tax rate. This ratio is calculated by dividing the
previous three years of benefit charges for former employees by the
taxable payroll for that same three-year period. The benefits
charged and the size of the payroll have a direct effect on the
employer's tax rate.
The variable adjustment factor (multiplier) is made up of three
ratios that spread the costs among employers that have had benefit
charges in the three previous years.
The timely reported taxable payroll uses up to $7,000 for each
The final adjustment factor spreads costs not included in the second
factor to all employers whose rates are not at the initial or
maximum rate. This factor is also distributed among employers who
had no benefit charges in the preceding three years. This factor
determines the minimum rate for the tax year.
The last three years of non-charged benefits (those not
attributable to any employer).
Excess payments (the portion of benefit charges which exceed the
maximum rate of 5.4%).
The fund size factor, which, depending on the amount in the trust
fund, may affect the tax rate. If the amount in the trust fund is
between 4% and 5% of the previous year’s taxable payroll, no
adjustment factor is made to the tax rate. If the balance in the
trust fund is below 4% of the previous year's taxable payroll, a
positive adjustment factor is computed each year until the fund
balance equals or exceeds 4% of the previous year’s taxable
payroll. A positive adjustment factor will increase tax rates. If
the balance in the trust fund is above 5% of the previous year’s
taxable payroll, a negative adjustment factor is computed each
year until the fund balance is less than 5% of the previous year’s
taxable payroll. A negative adjustment factor will decrease tax
Ideally, each employer would pay the exact amount of reemployment
assistance benefits that are chargeable to his or her account. This is
not possible because the maximum contribution rate is 5.4%, and
sometimes benefit payments are not charged to a specific employer.
These added costs are divided among all rated employers through the
variable adjustment factor and the final adjustment factor. Each
employer's contribution rate is his or her benefit cost, plus a share
of unassigned costs. This keeps the reemployment assistance program
Reemployment Tax Rate Computation Effective 2021 through 2025
Recent legislation changed Florida’s reemployment tax rate computation
for rates effective 2021 through 2025
The new rate calculation for 2021 excludes all
benefit charges from the second quarter of 2020 and prevents the
application of the positive adjustment factor, which normally
increases rates automatically if the trust fund balance is below a
Tax rates effective January 1, 2022, will exclude
charges from the second, third and fourth quarters of 2020 and all
benefit charges paid as a direct result of a government order to close
or reduce capacity of a business due to COVID-19, as determined by the
Department of Economic Opportunity. The tax rate calculation will also
exclude the application of the positive adjustment factor (trust fund
effective January 1, 2023 through December 31, 2025,
will exclude charges from the second, third and fourth quarters of
2020 and all benefit charges paid as a direct result of a government
order to close or reduce capacity of a business due to COVID-19, as
determined by the Department of Economic Opportunity. The tax rate
calculation will also exclude the application of the positive
adjustment factor (trust fund trigger). These changes to the tax rate
calculation are repealed if the trust fund reaches $4,071,519,600 on
Employers can help reduce tax rates by providing complete and accurate
information needed to determine a claimant's eligibility for benefits.
Improper payment of benefits is a serious problem that has a financial
impact on employers. Here's how you can prevent improper payments and
protect your tax rate:
Report all new and rehired employees to the
Florida New Hire Reporting Center
by the due date, as required by federal law. Timely reporting helps prevent improper payment of benefits after
an individual has returned to work.
Respond promptly to any Request for Verification of Weekly
Earnings. Verifying earnings ensures that the correct amount of
reemployment assistance is paid for weeks of partial unemployment.
Provide complete and accurate employee separation
information. The employer's timely response to the
Determination Notice of Reemployment Assistance Claim Filed
(Form UCB-412) is used, in part, to determine the claimant's
eligibility for reemployment assistance.
Employers who do not comply with state and federal requirements for
providing employee information risk higher costs through increased
taxes, fines, or penalties.
For questions about benefit eligibility and payment, contact the
Florida Department of Economic Opportunity, Reemployment Assistance
Program at 800-204-2418.
If an employer transfers all or part of its business to another
employer and, at the time of the transfer, there is any common
ownership, management or control of the two employers, the
unemployment experience attributable to the transferred business must
be transferred to the employer to whom the business is transferred.
(Note that Florida law defines “business” to include the employer’s
If the transfer was made with the intention of obtaining a lower
reemployment tax rate (referred to as State Unemployment Tax
Administration [SUTA] Dumping), a penalty rate of 2% of taxable wages
shall be added to both employers’ rates for three years. In addition,
an intentional violation of this provision makes it a felony of the
Payrolling is an agreement between employers where one employer agrees
to report the payroll of another employer for reemployment tax
purposes. Each employer maintains direction and control of their
workers and the businesses do not change. The only change is that the
payroll of one employer is reported to the Department by another
employer for convenience.
Florida law requires each legal entity to report only its own
employees, therefore, payrolling is not permitted. It is essential
under Chapter 443, Florida Statutes, that each employer report only
its own employees to ensure the accuracy and integrity of the
employer’s reemployment tax rate.