Florida announced the first week of December that Florida businesses will start paying lower unemployment insurance taxes in 2106. The minimum tax rate will be cut by more than 50 percent from the current rate of $16.80 per employee to $7.00 per employee in 2016.
Governor Rick Scott stated, “As more Floridians are finding the job opportunities they need to succeed and provide for their families, the cost of doing business in Florida keeps dropping. This dramatic reduction in taxes will be especially helpful for Florida’s small businesses, and is one more reason that companies are choosing Florida as the best place to grow. We will continue to create a business-friendly environment to help diversify our economy so Florida can become first for jobs.”
The $7.00 per employee minimum tax rate for 2016 is down from a high of $120.80 per employee in 2012. In the past four years, Florida businesses have had their unemployment insurance taxes taxes reduced by more than 90 percent.
The taxable wage base in Florida will remain at $7,000 in wages for each employee.
The above applies to all Florida employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes. Many Florida nonprofits could save as much as 30 percent on their unemployment cost by opting out of the unemployment insurance tax system – an advantage provided to them by the IRS. Doing so affords nonprofits unique avenues that allow them to strategically handle unemployment claims administration and unemployment insurance taxes in ways that for-profits can only dream about.
Contact us today for more information concerning your nonprofit unemployment insurance tax advantages.