Florida businesses have saved big bucks over the last few years -- to the tune of over $2.3 billion -- because of a reduction in the state’s unemployment taxes.
According to a press release from Gov. Rick Scott’s office, Florida businesses have benefited significantly due to not having to pay as much for unemployment taxes.
In 2012, Florida businesses paid at least $121 in unemployment taxes per employee as a result of a high number of Floridians seeking reemployment assistance during the economic recession.
During the recession, more Floridians sought reemployment assistance, emptying the state’s trust fund. The trust fund became insolvent (unable to pay back its debts) in 2009, which then increased payroll taxes.
As more people found jobs and went back to work, the number of those getting reemployment assistance dropped. When the private-sector job growth rate increased, the unemployment tax rate decreased.
By 2016, Scott’s office said the minimum tax rate dropped by more than 94 percent from 2012’s rate to $7.00 per employee.
Gov. Scott has repeatedly emphasized Florida’s economy and the state’s workers as two parts of the great success story of the Sunshine State. Monday’s press release served as another indicator to Scott that the state was on the right path to getting back on the track of a solid economy.
“Our number one goal is to make Florida the best place in the world to get a job, and hardworking Florida businesses have created more than 1,061,00 new jobs for Florida families,” said Scott. “Because more Floridians are back at work, we have been able to save Florida businesses more than $2 billion which can instead be reinvested to hire more employees. This is great news for businesses and families in the Sunshine State.”
Florida Department of Economic Opportunity Executive Director Cissy Proctor agreed, saying a focused, job oriented economy has been pivotal in Florida in recent years.
“Our focus on job creation is positively affecting Florida’s economy. As more jobs are created, we have the opportunity to reduce taxes for Florida businesses, which in turn helps the economy grow and allows business to hire more Floridians,” she said. “Every time an unemployed Floridian gets a job, our economy grows stronger.”
Reach reporter Allison Nielsen by email at allison@sunshinestatenews.com or follow her on Twitter: @AllisonNielsen.
