At the end of last week, the Florida Department of Revenue announced that approximately 56% of Florida’s employers will continue to pay the lowest possible rate for reemployment taxes in 2024. This is the ninth consecutive year employers are benefitting from the low rate of 0.1 percent. Those contributions go toward a program that helps Florida’s job seekers become reemployed.
The Revenue Department insisted that this lowest possible rate was maintained through legislation passed by the Legislature and signed by Gov. Ron DeSantis, which excludes the positive adjustment factor from the reemployment tax rate calculation and requires out-of-state online retailers to compete on a level playing field with locally owned small businesses and other Florida-based companies.
“The continuation of the lowest possible reemployment tax rate is great news for Florida’s employers,” said Florida Department of Revenue Executive Director Jim Zingale. “This low tax rate will help our state maintain a thriving workforce.”
“Under Governor DeSantis’ leadership, Florida’s Reemployment Tax Rate remains at 0.1 percent, benefiting Florida business owners and their bottom line across the state,” said Secretary of Commerce J. Alex Kelly. “Since 2019, more businesses have formed in Florida than any other state in the nation. With 2.7 million new businesses, maintaining a low-tax climate is essential to remaining competitive in our target industries and ultimately supporting Florida’s job seekers and job creators.”
Employers pay a percentage only on the first $7,000 of wages paid to each employee. Florida is one of only four states with a $7,000 wage base; all remaining states have a higher wage base. Employers with stable employment receive the lowest rate. Reemployment taxes, or payroll taxes, fund Florida’s Reemployment Assistance Trust Fund. This fund currently has a balance of more than $3 billion.
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