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Updated: 9:17 PM Nov 20, 2009
Florida Unemployment Tax About To Go Up
Florida’s unemployment rate rose slightly in October to 11.2 percent. The point one percent increase is a sign the state’s unemployment crisis may be slowing down.
Posted: 9:17 PM Nov 20, 2009 |
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Florida’s unemployment rate rose slightly in October to 11.2 percent. The point one percent increase is a sign the state’s unemployment crisis may be slowing down. But, the effects of double digit unemployment may stick with Florida business owners for years in the form of higher taxes.
Fresh made-to-order subs served with a smile are the ingredients of success for Metro Deli owner Rob Bailey. But to keep his restaurant above water at a time with the economy is forcing many to stop eating out has been a challenge.
“Everybody’s got a little less exposable income, people are bringing lunches more and it’s affecting us already.”
To add insult injury, Rob’s unemployment tax is scheduled to increase 12 fold, jumping from 67 dollars for his eight employees, to 8-hundred dollars.
“We are doing okay, but it could change things.”
The tax is being increased to help pay unemployment claims. The fund ran out of money in August. Now the state is borrowing money from the feds and asking Florida businesses to foot the bill.
Rick McAllister of the Florida Retail Federation says now is not the time.
“Let’s not hammer small business and medium size businesses, who are just now starting to feel like things are getting better, with a two billion dollar bill.”
Retailers are asking the governor and lawmakers to look at the issue in a special session because the first payment of the new unemployment tax will be due in March.
Friday the Agency for Workforce Innovation gave indications help for the unemployed will be need longer than expected. Rebecca Rust is AWI Chief Economist
“The unemployment rate is expected to remain above six per through the 2019.”
Leaving state lawmakers looking for money to fix the problem.
Retailer are hoping a vote on decreasing the tax increase can be taken in December or January, that’s when a special session for high-speed rail is rumored to be held.
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