Florida’s Reemployment Tax Rate Continues to Remain at Lowest Possible Rate

Thursday, January 13, 2022

The Florida Department of Revenue announced that more than 55% of Florida’s employers will continue to pay the lowest possible rate for reemployment taxes in 2022. This is the seventh consecutive year employers are benefitting from the low rate of 0.1 percent and knowing that those contributions go toward a program focused on helping Florida's job seekers become reemployed. This lowest possible rate was maintained through legislation passed by the Legislature and signed by Governor 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 past two years have been incredibly difficult for Florida businesses," said Florida Department of Revenue Executive Director Jim Zingale. "I am happy to report that an increased reemployment tax rate will not add to their worries this year."

"Lowering taxes for Florida business owners helps generate future growth for our economy, which in turn provides more opportunities for all Floridians," said Secretary Dane Eagle of the Florida Department of Economic Opportunity. "With the reduction of the Reemployment tax rate minimum to its previous rate of 0.1 percent, Florida employers will save invaluable resources that they can use to support their businesses and employees."

Employers only pay a percentage 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 $1.4 billion.

More information about the reemployment assistance tax rate is available from the Florida Department of Revenue.