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Stop Rising Unemployment Compensation Rates

Date: January 31, 2012

NFIB/FL supports easing the load of continually rising unemployment tax rates by supporting efforts to reconfigure the state system and reduce unemployment compensation fraud.

The economic impact caused by the souring economy of the last few years depleted Florida’s unemployment trust fund. As a result, Florida currently owes the federal government $1.7 billion in borrowed funds, and it will still be several years before the fund is solvent. Consequently, small business owners have been affected by higher unemployment tax rates caused by these soaring unemployment rates and NFIB is working to support any efforts that will ease the load of a higher unemployment tax.

NFIB supports the recent proposal made by the Business and Consumer Affairs Subcommittee which recommend changing all references of “unemployment compensation” to “reemployment assistance” in state law, and seeks mandatory workforce training for unemployment compensation recipients that score low on a proficiency exam given to all applicants.

All of the major business groups in Florida who recommended that the Legislature to decrease the taxable wage base per worker from $8,500 to $7,000 and lengthen the time, from three to six years, for the recovery of trust fund deficits. These efforts will help create jobs by lessening the tax load on small businesses caused by the unemployment tax. Additionally, it helps reduce waste caused by fraud by expanding the ability for the state to penalize those convicted of fraud through the garnishment of wages and the extension of the statute of limitations.
 

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