Unemployment Compensation in the Year 2010 by xdb19855

VIEWS: 6 PAGES: 21

									   Unemployment in Florida
The Good, The Bad and the Ugly

*Warning: There’s really
nothing good to report.

   AMIE REMINGTON, ESQ.
   Landrum Human Resource
        Companies, Inc.
     6723 Plantation Road
    Pensacola, Florida 32504

 Navarre Chamber of Commerce
       January 29, 2010
      Unemployment Compensation:
            A Little History

• 1937 - Great
  Depression


• $1 unemployment =
 $1.63 commercial
 activity
     Unemployment in Florida
•   September, 2005          2-3%
•   August, 2009             10.8%
•   September, 2009          11%
•   November, 2009           11.5%
    – This is equal to 1 million jobless people.
        National Unemployment

• TALX data

  – 6-7 million claims/year
    average/nationally

  – Between 1/1/09 –
    9/1/09, TALX
    processed 11-12
    million claims
    nationally
       Florida’s Trust Fund

• When an employer pays unemployment
  taxes, the taxes go into a state trust fund.

• When an employee receives
  unemployment benefits,
  they are paid from that
  trust fund.
        Florida’s Trust Fund
• Qualified claimants may receive UC
  benefits equal to 25% of their wages.

  – Minimum: $32/week
  – Maximum: $275/week
  – May not exceed $7,150/year
Florida’s Trust Fund Balance


• December 31, 2008 - $1.3 billion

• June, 2009 - $450 million
           Florida’s Trust Fund
• As of 8/24/09, it is insolvent.
   – As in zero, nada, nothing.

• The State of Florida has to borrow money from
  the federal government to pay unemployment
  claims submitted by Floridians.

• Current interest rate: 3.3%
   – Increases over time via FUTA credit reduction
       Florida’s Trust Fund

• 10/16/09 - the outstanding loan balance
  from the federal government was
  $464,900,000

  – Yes, that is $464.9 million dollars!
                 Recap
• Positive Balance
  – December 31, 2008 - $1.3 billion
  – June, 2009 - $450 million

• Broke
  – August 24, 2009 - $0

• In the Red
  – October 16, 2009 - $464,900,000
       Florida 2009 Rates
• Wage base

• Tax base
 Basically, both are going up
• Wage base going from $7,000 to $8,500

• Tax rate also going up effective 1/1/10, but
  2010 rates haven’t been announced yet
                Applied
• Tax Rates
  – Minimum Tax Rate: from .12% to 1.18%
  – Maximum Tax Rate: stays at 5.4%

• Tax Rates Applied to New Wage Base
  – Minimum Tax Liability:
    • From $8.40/employee to $100.30/employee
  – Maximum Tax Liability:
    • From $378/employee to $459/employee
         In the Real World 2009
   98 employees with super low turn over
                         2009              2010
Tax base               $7,000          $8,500

Taxable wages        $689,395       $833,000

Tax rate                .0063              .0191

Tax Per E’ee           $44.10        $162.35

Result               $4,343.41     $15,910.30
State House                                    State Senate
                  State Senate
Representative                                 Don Gaetz
                  Senator Durell Peaden, Jr.
Greg Evers                                     District 4
                  District 2
District 1




 State House                                     Congressman
 Representative                                  Jeff Miller
 Clay Ford                                       District 1
 District 1
Avoiding future increases to your
     unemployment tax base

        • Good Human Resource
          Practices & Low Turnover
              – Policies and procedures
              – Job descriptions
              – Clear goals and expectations
              – Proper documentation

								
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